At the last moment of reconciliation, users mostly view a small amount of leftover. That is actually called a discrepancy. When reviewing all the things for correctness, you will get if this discrepancy is just an error.
If there is only a tiny amount of leftover, QuickBooks allows you to make an adjusting entry. This feature of QuickBooks that push your accounts to balance so you could complete the reconciliation. Take it as a solution when you are not able to search the source of the discrepancy and there is only a tiny difference.
Reminder: The process of adjusting entries for reconciliation in QuickBooks online is quite powerful. Therefore you must have to be sure that the leftover amount is not huge and an error. The adjustment of an entry must be a last resort. If you will make them for huge discrepancies, it will lead to various accounting issues. So you should contact your accountant when you are not sure about it.
How to enter an adjusting entry
This is the simplest step you have ever learned in order to enter an adjusting entry for reconciliation in QuickBooks Online. As QuickBooks Online provides a bunch of accounting and financial features, this amazing solution comes up to resolve the discrepancies issue in the reconciliation process.
We just recommend you to ensure what you are going to do because it is a powerful process. If you do not want to creates unnecessary accounting issues by own then take steps wisely. Now let us see how you can enter an adjusting entry:
- First of all, open the Accounting menu and click on the Reconcile tab.
- Then move to the option Reconcile your account.
- Once you have reviewed all the things for errors, hit on the Finish now an option in the dropdown menu.
After that, you will get a notification saying that your account is not balanced anymore. Click on the link to Add adjusting entry. This will make an expense transaction when the difference will be negative, or an income transaction when the difference will be positive. This actually pushes the account to balance.
Conclusion
Balancing the QuickBooks registers helps you to save money for your company by catching any extra payments, bank code errors, and fake customer payments in a timely manner.
The reconciliation service of QuickBooks allows you to possibly and quickly make new transactions and adjust existing transactions in order to receive your register to balance.
Before processing to reconcile the accounts, you will have to make sure that you filled out all of your transactions within the account register. Otherwise, you should be left on the Reconciliation page and create the missing transactions before you can resume the process ahead. Reconciling the accounts on monthly basis helps users to be on top of their finances and stop tiny errors from making discrepancies in their books.
For more support and help be in touch with our Quickbooks online support team at +1-877-898-0542.