I am reconciling and have a difference of $495 because the cleared balance is different to the statement ending balance. why and how do I fix that?

There are multiple reasons why differences can arise between your cleared balance and statement ending balance during reconciliation, lawnsplus.

First, return to the reconciliation screen, click Edit info, and carefully verify that the Statement ending balance you entered matches the amount shown on your bank statement. If this figure is accurate, the issue may be with the Opening Balance you recorded. Review the opening balance transaction in your bank register. It should correspond to the ending balance from the statement prior to your current period.

Additionally, filtering your transactions can help. Not every transaction may have been reviewed against your bank statement. Check each entry's date and amount to ensure they are correct and complete.

Another common cause is that some bank statement transactions, such as checks, deposits, fees, or electronic payments, may not have been entered into QuickBooks Online (QBO), or duplicate entries could be inflating your records.

Furthermore, some transactions might not be marked as cleared in QBO, even though they have cleared your bank. Compare your bank statement carefully to identify any missing or uncleared transactions. You can also run the Reconcile Discrepancy Report to diagnose issues with your beginning balance.

This report will show transactions that have been added, deleted, or altered since your last reconciliation, highlighting discrepancies that may be impacting your balance.

If you need more help, don’t hesitate to leave a comment below.