Whether it’s an error or a wrong posting within Quickbooks, it will lead to discrepancies within your companies account. You may find issues matching entries with your bank and your balances within the program may not match as well. Accounting is crucial, you really have to have your eyes wide open. Thus, if you are facing balancing issues, then today we will address “How to balance QuickBooks with bank account”.
Easily figure out how to balance QuickBooks with Bank Account:
Few cents, here and there may not make much of a difference to you in your real life, but it’s an unavoided mistake within your books. You really need to have matching entries otherwise it will bring inconsistencies within your system.
Your reports like balance sheets and P&L accounts will also show inaccurate data. Thus it is really important for you to figure out what is causing mismatched entries and remove them as soon as possible.
Causes and solution on how to balance QuickBooks with bank account:
Well, there is no single reason that can be held responsible for your mismatched balances within QuickBooks. Below are the 5 possible causes that we require you to check in order to figure out the cause of your difference. Though there may be other issues as well, thus dig in deep a little bit to find what’s wrong.
Cause #1: Duplicate entries:
The most common cause of balances not matching with your bank account is the duplicate entry. If you have entered a new transaction, instead of it being matched to an existing one then it may cause balancing issues.
If you have duplicate entries within your Quickbooks account then the best thing you can do is:
- Filter out transaction report by amount.
- Do not sort by date.
- Save your preferences and
- You will now see a report well sorted by amount. Scroll down to find any duplicate figures and check the transaction alongside. If it’s a duplicate entry then don’t hesitate to delete it.
Cause #2: Credit cards:
If you have a credit card transaction that has not been populated with your QuickBooks Company file then your balance will be negatively affected.
To get rid of this kind of an error, pass a credit card entry like you normally do and see if the balance matches. In case you have all set and in place then figure out if the balances are correct, if not then rectify and reconcile the same.
If you have your QuickBooks auto-synced with your bank account then check if the entry is still stuck under new transactions tab. If this so then, add them to your register, update QuickBooks and check if the balance now matches.
Cause #3: Outstanding Checks:
This is another commonly found issue because of which your bank balance doesn’t match. And later people find themselves figuring out how to balance QuickBooks with bank account. If you have entered a check entry within QB and the same is not cleared by your bank then differences in your balances will show up.
The only thing you can do is wait and watch until your bank clears your check amount. For e.g. if you have a balance of $2000 within your QuickBooks bank account and have an outstanding check of $150, which you have already included in your QB account then:
- Your balance won’t match as the check has still not been cleared.
- Your figures will balance automatically once cleared.
Cause #4: New entries:
When you connect your QuickBooks account with your bank account than any new transaction in your bank gets imported in your QB system. All the transactions imported get added in Quickbooks with a twist. You generally don’t find them within your accounting registers, as they get added within a new tab. This ultimately causes mismatched figures. What you can do to resolve this…?
Here you need to understand that through your bank has been auto-synced with your QB account, it cannot be left autopilot. Since your new entries will be heading over to the new tab, you would have to manually approve them to be in your QuickBooks registers. Unless and until your transactions remain under new tab your balances will not match. Thus you would really need to update QB by adding entries within your QuickBooks registers to match your mismatched figures.
Cause #5: Modified transactions:
If you have edited, modified or deleted any previous transaction then this will sure shot lead to discrepancies in Quickbooks.
If you have modified or deleted any previous transaction by default then you would have to either recover it or create an adjusting transaction. To do so, you would have to work with an audit trail. If you don’t know how to run audit trial in Quickbooks then we would suggest clicking the link above.
In case you want to know “how to recover deleted transactions in QuickBooks” then click on the link above. This is a step by step guide that will help you recover all your modified or deleted transactions with ease.
Hope you are now able to figure out “How to balance QuickBooks with Bank account”. But if you are still facing issues then you may need a customized support. Most likely you may be facing issues that we may not have addressed here. Thus we would suggest connecting with our QuickBooks professionals immediately. They will help you figure out your problem and help fix your issue on call. So, wait no longer and get sorted now.
Still in Doubt…!
Request a Call Back
Talk to our Quickbooks Proadvisor and resolve your issue over a phone call.