Similar to handling your checkbook, it is important to recheck your accounts in QB to verify that they match with your actual bank and credit card statements. This is called reconciling. In the desktop version, you can undo reconciliation in QuickBooks in a single click. But in the case of QB Online, you have to undo each transaction one by one through Registers. You can perform undo reconciliation in QuickBooks Desktop when your balance sheet does not match with your bank statements after a monthly reconciliation. Therefore, it becomes necessary to undo reconciliation in QB. However, it is advisable to reconcile your accounts once every month. And you should also verify or recheck it after 6 months. If you don’t have enough time to perform this task, then you may contact our highly-qualified and certified specialists. They will provide you instant support because they know how precious your time is.
Why Is There A Need Of Doing Undo Reconciliation In QuickBooks Desktop?
Here are a few points which are the common reasons for performing reconciliation in QB. They are as follows:
- First, the payment or transactions was recorded for the wrong date.
- The date issued for the bank statement was wrong.
- Reconciliation was compulsorily balanced that needs to be repaired.
- Bank check was not free which was passed in the QB account.
What Are The Advantages Of Undoing Reconciliation In QB Desktop?
There are 3 main advantages to undo reconciliation in QB Desktop like:
- Firstly, it prevents fraud from employees and vendors.
- It helps in calculating the changes in income.
- Necessary actions can be taken at the time of risk.
How Do I Undo Reconciliation In QuickBooks Desktop Manually?
If you want to undo reconciliation in QB by yourself. Then you have to follow some basic steps such as:
- Firstly, hit the Gear icon and select Chart of Accounts.
- Find the account that you want to view.
- Now click on the Account history.
- Then find the specific account that you want to edit.
- Visit Reconcile status, choose the top mark, and then modify it.
- Remember that C means Cleared, R means reconciliation, and blank means it is neither cleared nor reconciled.
How Do I Undo Reconciliation In QuickBooks Desktop?
If your accounts in QB Desktop don’t match your bank statements at the end of the reconciliation process. Or we can say that when you compare transactions in the QB with your bank statements. Then, in the end, the difference between the two records should be 0. If you want to undo reconciliation in QuickBooks Desktop then follow these steps such as:
1. Verify your opening and starting balance
First of all, you should verify that your opening and starting balance should be accurate and correct. Once these balances are accurate, then you can start looking for other issues.
2. View modified, erased and added transactions
Although there are several reports in QB that displays you if anything has been modified, erased or added like:
Execute a reconciliation variation report
- Visit the Reports menu >> Banking >> Reconciliation Discrepancy.
- Next, you have to choose the account you’re reconciling and then select OK.
- View the report for any variations.
- Talk with the person who made the change.
- Once you know they have made the changes, edit the transaction as needed.
Execute the missing check report
- From the Reports menu, click on Banking >> Missing Checks.
- Then click OK after selecting the reconciling account.
- Again see the report and check if there are any transactions that are not present on your bank statement.
- If they are not located on your bank statement, then they should not be on your reconciliation.
3. Check reconciliation adjustments
However, check the account and ensure that no one has made an inaccurate adjustment. Here is a list of steps that you have to follow like:
- First, click on the Lists menu >> Chart of Accounts >> Reconciliation Discrepancies account.
- From the Dates field, set dates for your last few reconciliations.
- If you view that the account balance is inaccurate, then reach out to the person who has made the changes.
- Ensure that your corrections are not conflicting with the changes.
4. End the reconciliation
When everything is fixed, then you can end the reconciliation process. This will help you to undo reconciliation in QuickBooks Desktop.
How Do I Undo reconciliation In QB Versions?
QB Online Accountant
If you are using QB Online Accountant(QBOA) then you have to follow these steps like:
- First of all, visit the Accounting menu.
- From the Reconcile tab, click on History by account.
- Choose the account for reconciling and date range from the menu.
- Locate the reconciliation on the list.
- If you have not, then select View report to access the Reconciliation Report.
- Again check any changes that your client wants.
- After that, select the arrow in the Action column.
- Click on Undo option.
- Select Yes to confirm the undo.
- As you know that QB Online reconciles transactions one by one, then it is advisable to reconcile it every month.
- Go to the banking menu.
- Now click on Registers.
- Click on the account from the Register name list.
- After that, select the transactions that you wish to do reconciliation.
- Erase R at the top of the transaction to modify it to unreconciled.
If you are using QB desktop versions like QB Pro or Premier then you have to follow these steps to unreconciled such as
- First of all, you have to access QB.
- Go to the banking menu.
- Search the transaction for reconciliation.
- Select the Reconcile Now option from the menu.
- Finally, click on the Undo Last Reconciliation option.
How to backup the erase transactions?
- First, click on Reports.
- Then choose Account and taxes from the drop-down menu.
- Click on Erase/Delete transaction.
- Type the date to remove the transaction and again type the transaction in the required field.
- This will help you in backing up the erased transactions.
Note: However, sales and purchase orders cannot be backed up.
Frequently Asked Questions
1. What is the reason behind the disturbances between QB and bank statements while reconciling on a monthly basis?
Ans There are some reasons due to which your QB data does not match with your account statements. Also including bank service charges, checks that haven’t free, and transactions that haven’t been entered in QB yet.
2. How much time is saved by reconciling accounts in QB rather than doing it in a manual way?
Ans However, on average, manual reconciliations usually take 1 hour time. While connecting your bank to QB, may take less than 10 minutes to perform reconciliation.
3. Can we adjust reconciliation in QB?
Ans Yes. In QB, you have the option to make an adjusting entry if the difference is not 0 when you have done completely reconciling. However, adjusting entries happens only as of the last place for small amounts. Although if you adjust larger amounts, you are creating risk problems for the future.
4. Why is there a requirement for reconciling QB?
Ans There is a need for reconciling QB in order to verify that the starting balance and the transaction entered in your QB matches with your monthly balance report.
In the end
If you want to know how can undo reconciliation in QuickBooks Desktop takes place. Then this blog will help you a lot. In a nutshell, we can say that undo reconciliation in QB desktop occurs when your starting balance report and monthly balance report do not match. In this blog, all the steps will help you to do it manually or unreconciled with QB. For any queries, contact our QuickBooks Payroll Phone Number.