If your beginning balance doesn't match what you expected after forcing a reconciliation, it's usually because QuickBooks Desktop carried forward the actual completed total, including any adjustment entry, rather than the number you originally typed into the Ending Balance field. You can find the exact cause with the Reconciliation Discrepancy report, then either accept the current balance and move forward or undo and redo the reconciliation to reset it.
Why did my beginning balance change after I forced a reconciliation?
QuickBooks Desktop automatically fills in your Beginning Balance using the ending balance from your last completed reconciliation. When a reconciliation doesn't balance to $0.00 and you select Enter Adjustment to complete it anyway, QuickBooks records the difference as a journal entry in a special account called Reconciliation Discrepancies. That adjusted total becomes the completed reconciliation's ending balance, and it's what carries forward as your next Beginning Balance.
A beginning balance can also be off for a few other reasons:
- The account wasn't set up with a balance, or was set up with an incorrect one.
- A previously cleared or reconciled transaction was voided, deleted, or modified.
- The file was converted from another version of QuickBooks.
- Damaged data.
How do I find out exactly what's driving the discrepancy?
- Go to the Reports menu, then select Banking.
- Select Reconciliation Discrepancy.
- Select the Account, then select OK.
- Review the list of transactions that changed since your last reconciliation. For each one, note the transaction date and the Entered/Last Modified date, which tells you when the change happened.
How do I fix the discrepancy and start clean?
You have two paths, depending on whether you want to keep the forced reconciliation as is or reset it.
Option 1: Accept the current beginning balance and move on. If the discrepancy report confirms the difference is only from the adjustment your forced reconciliation created, that's expected. You can go ahead and reconcile January 2021 against the beginning balance QuickBooks is now showing.
Option 2: Undo the reconciliation and redo it.
- Back up your QuickBooks company file first.
- Go to Banking, then select Reconcile.
- Select Undo Last Reconciliation.
- When prompted, select Continue, then OK.
- Close the Reconcile window and open it again. Your beginning balance reverts to the beginning balance of the reconciliation before it, and all cleared transactions on the undone reconciliation become uncleared again.
From there, redo the reconciliation with the ending balance you intend, and let QuickBooks enter a new adjustment only if needed.
Frequently asked questions
What does the Reconciliation Discrepancy report actually show me? A list of every transaction that changed since your last reconciliation, along with the date it changed, so you can pinpoint what's affecting your beginning balance.
What happens when I select Enter Adjustment during a reconciliation? QuickBooks Desktop completes the reconciliation for you and automatically creates a journal entry for the difference in a special account called Reconciliation Discrepancies.
How do I find an adjustment QuickBooks made automatically? Go to Edit, then Find, select the Advanced tab, choose Memo, type Balance Adjustment, then select Find. You can also check the Previous Reconciliation report under cleared transactions.
Can I undo a reconciliation if I want to start over? Yes. Back up your company file, then go to Banking, select Reconcile, and choose Undo Last Reconciliation. This reverts your beginning balance to the beginning balance of your previous reconciliation and unclears every transaction from the one you undid.
Since your accountant is already directing this cleanup, loop them in before you finalize either option, especially if you decide to undo the reconciliation. Reply with your specific numbers if you'd like more help working through it.
Resources:
Fix beginning balance issues in QuickBooks Desktop: https://quickbooks.intuit.com/learn-support/en-us/help-article/bank-feeds/fix-beginning-balance-issues-quickbooks-desktop/L04fjomHI_US_en_US
Reconcile an account in QuickBooks Desktop: https://quickbooks.intuit.com/learn-support/en-us/help-article/reconciliation-reports/reconcile-account-quickbooks-desktop/L2U5ZKM1J_US_en_US
