"Hi, I need assistance. I’ve run the Balance Sheet, P&L, and Cash Flow statements, but they aren't reconciling with each other."

Are all the reports consistent in using the cash or an accrual accounting method? Also, were any of the transactions edited, deleted, or manually reconciled after the previous month’s closing?

On a cash basis, the Profit & Loss (P&L) and Balance Sheet may show different net income figures because income and expenses are only recorded when cash moves. Consequently, unpaid invoices (A/R) and bills (A/P) appear on the Balance Sheet but are excluded from the P&L. Furthermore, the Statement of Cash Flows always defaults to an accrual basis, regardless of the settings used for other reports.

Contrarily, reports on an accrual basis should naturally align. If a discrepancy exists, it likely arises from transactions that are edited, deleted, or manually reconciled after the previous month’s closing. Even minor changes to cleared items disrupt the ending balance chain, causing the next period's beginning balance to shift.

To verify this, navigate to the Audit log via the Gear icon. Filter for activity occurring after the last reconciliation to identify any edited or deleted transactions that were previously cleared. Once you have identified the issues, you can check out this article to help you fix the issues with your beginning balance in QuickBooks: Fix issues with your beginning balance for accounts you've reconciled before.

If you have any further concerns, please don’t hesitate to let us know.