When you open up QuickBooks and sit down to do the finances for your business, one of the most worrying discoveries can be that your bank balance doesn’t match your register balance. 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 the numbers don’t match up and whether you need to act quickly to correct a serious problem or just fix some clerical issues.  

Reasons Bank and Register Balances Don’t Match

If your bank and register balances don’t match up, don’t immediately assume that theft has occurred or that there has been a billing mistake. There are actually two more common reasons for this to happen:

  • Timing Differences – 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, but 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 Reconciliation  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.

For help understanding and reconciling your QuickBooks account, contact us today.