Are you having trouble getting your QuickBooks and Bank balances to match?
When you open up QuickBooks to do the finances for your business, one of the most worrying discoveries can be that QuickBooks and Bank balances don’t match. A discrepancy could be a red flag that something is wrong in your books, but it’s more likely that there’s an innocent cause.
If you know what to look for, you can quickly determine why your QuickBooks and Bank balances don’t match up. Also, you’ll know whether you need to act quickly to correct a serious problem or just fix some clerical issues.
Reasons QuickBooks and Bank Balances Don’t Match
If your bank and register balances don’t match up, don’t immediately assume that theft has occurred. Also, don’t assume there has been a billing mistake. There are two more common reasons for this to happen:
When a timing difference occurs, the money that shows up on your QuickBooks account is not yet in the bank. For example, when you print out a check in QuickBooks Online, the software automatically takes that amount from the register balance. That doesn’t mean it has been cleared in the bank yet. The same can occur with payroll and customer checks as well. These timing differences are very common but easy to track down and monitor. So, you can put the numbers in line and your mind at ease.
No Bank Reconciliations
In order to keep your QuickBooks Online finances healthy, you need to perform a reconciliation between your bank register and bank statement each month. Doing so is crucial to uncovering common mistakes like duplicate or missing transactions, errors featuring wrong dates or amounts, and changed transactions. If you have not reconciled your accounts lately, these mistakes might be causing a discrepancy.
These seem to be the most common reasons QuickBooks and Bank balances don’t match. For help understanding and reconciling your QuickBooks account, contact us today. We can make sense of your books and give you the correct financials to make sound business decisions.