Stuck Because Your Books Don’t Reconcile?
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Why Your Books Don’t Reconcile—and What to Check First
When you’re running a small business, staying on top of your finances can sometimes feel like juggling a dozen things at once. But one task you definitely don’t want to skip is reconciling your accounts. Getting this right—consistently and on time—helps you avoid all sorts of headaches down the road. It means your financial records match up with your bank statements, so you can quickly spot any discrepancies. The sooner you catch an error, the easier it is to fix, and the less likely it is to turn into a bigger problem. Plus, keeping your accounts reconciled gives you a clear picture of your cash flow, which is key to making smart business decisions. And let’s not forget—regular reconciliations can help keep you in the good books with auditors or tax authorities. In short, taking the time to reconcile properly helps keep your business running smoothly, so you can focus on what you do best.
But let’s be real—sometimes, despite your best efforts, the books just don’t seem to reconcile. If that happens, don’t panic. It’s a common challenge for many small business owners, and the good news is, it’s fixable. The key is knowing what to look for before you hit that “Reconcile” button in QuickBooks Online (QBO). Rushing through it can lead to bigger issues down the line, so it’s worth taking a moment to double-check a few things first.
WHAT NOT TO DO!
Never force a reconciliation.
Before you try to “fix” it quickly… stop.
Clicking “Reconcile” when the numbers don’t match won’t fix the issue—it will bury it and make things worse. Forcing a reconciliation hides the real problem and makes it much harder to fix later. You’ll lose the ability to trace errors easily and create more confusion down the line.
Here’s what to do instead.
How to Troubleshoot When Your Books Don’t Reconcile
1. Verify the Correct Account
This may sound obvious, but it’s a common mistake—especially if you have multiple bank accounts in QBO. Make sure the account you’re trying to reconcile matches the actual statement or online banking record.
One wrong account can throw everything off, and if your books don’t reconcile because of this, it can be frustrating to figure out where things went wrong.
2. Check for Missing Bank Transactions
When your books don’t reconcile, it’s often due to missing transactions. A common issue is transactions that show up on the bank side but haven’t been entered into QBO. To get your books back in order, compare your QBO register with your bank statement carefully. Look for:
ATM withdrawals
Direct deposits
Automatic withdrawals
Bank fees
These small transactions can easily be overlooked and are often the reason your books don’t reconcile in the first place, especially if they’re infrequent or not part of your usual routine. Missing even one of these can throw off your reconciliation and make it seem like your books aren’t balancing. To avoid this, make it a habit to regularly check for these types of items, ensuring that every transaction is accurately recorded in QBO.
3. Look for Reversed Entries
If the difference is exactly half of a known transaction, you may have entered it backward.
Example: You meant to record a $200 deposit but entered it as a $200 withdrawal. The reconciliation difference? $400.
Look for these one-off errors—they’re more common than you’d think and are one of the reasons why the books don’t reconcile.
4. Match the Reconciliation Difference
If the difference equals a specific transaction amount:
- It might have been marked cleared when it shouldn’t have been (or vice versa)
- You might have entered it twice
These are easy to miss, especially when you’re working quickly, and often lead to situations where the books don’t reconcile.
5. Watch for Transposed Numbers
Transposed numbers are simple data entry errors like typing $54.89 instead of $54.98. Just a small switch can keep your books from reconciling.
Tip: Try reading the numbers backward—it helps spot mistakes.
6. Ask Someone to Check Your Work
You’ve been staring at numbers for hours—bring in a second set of eyes. Whether it’s a team member or a bookkeeper, someone else might catch what you missed.
Also, don’t forget: some banks will help with reconciliations. It may be a free service. Just ask.
7. Check for Multiple Errors
Found one issue but your books still don’t reconcile? Keep going. Errors often come in pairs:
- A transposed number and a reversed transaction
- A duplicate entry and a missed fee
Work through the checklist again. Be patient—it’s worth it.
8. Check Opening Balances
Verify that your opening balance in QBO matches your bank statement for the same date. This is especially important during your first reconciliation, but it matters every month. For every reconciliation going forward, the beginning balance in QuickBooks must match the beginning balance on your bank statement exactly. If it doesn’t, go back and look for changes in previously reconciled periods.
A mismatch here can throw off all future reconciliations, and this can be a major reason why your books don’t reconcile.
9. Review Your Bank Feed Matching
- Sometimes QBO incorrectly auto-matches a transaction from the bank feed.
- Go to the Banking > For Review tab and confirm matches are accurate.
- If something looks off, undo the match and reclassify it properly.
10. Watch for Manual Journal Entries
- Manual journal entries that bypass the bank feed can disrupt the reconciliation.
- Make sure any journal entries affecting bank accounts were truly needed—and entered correctly.
11. Use the Reconciliation Discrepancy Report
If your books aren’t reconciling in QuickBooks Online, the Reconciliation Discrepancy tool can be a game-changer. This feature helps identify discrepancies caused by changes to previously reconciled transactions—one of the most common culprits of reconciliation issues.
When a transaction is edited after being reconciled, it can throw off your balance without you realizing it. The Reconciliation Discrepancy tool highlights these changes, so you can quickly spot the issue and correct it. It’s an efficient way to save time and reduce frustration when your books aren’t adding up.
To access the tool:
- Click on the Gear icon (⚙️) in the top-right corner.
- Under Tools, select Reconcile.
- On the right side of the screen, click the History by account link.
- The Reconciliation History report will appear, showing any changes made to previously reconciled transactions, making it easy to see what’s causing the discrepancy.
This feature is a valuable tool to help keep your books accurate and up to date without the hassle of digging through individual transactions.
When to Get Help
If you’ve gone through these steps and your books still don’t reconcile, it may be time to bring in a professional. A certified bookkeeper can often find and fix problems faster, and set up better systems to prevent them in the future.
What to Read Next
Solving a reconciliation issue is one thing—preventing it is another.
In my next post, I walk you through the best bookkeeping practices to prevent reconciliation errors before they start.
👉 Read it here: How to Prevent Reconciliation Errors in QuickBooks Online
References
Intuit QuickBooks – What are account histories in QuickBooks Online?
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