Reconciliation plays a major role in accounting as it ensures that both your accounts are balanced and accurate. With the help of the reconciliation, the users can easily figure out the difference between the transactions. However, if the users spot any missing or wrong entries while reconciling the accounts, they can rectify it there only. Thus, it would be avoiding further discrepancies that may happen while preparing the balance sheets. But, sometimes, the users may need to Undo reconciliation in quickbooks online if they have reconciled the transaction by mistake.
Furthermore, in this comprehensive guide, we have provided you with the proper step-by-step instructions to undo a bank reconciliation. So, stick to this blog till the end and get all your issue resolved immediately.
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What are the Benefits of Undo Reconciliation In QuickBooks Online?
Below, we have discussed some of the advantages to undo reconciliation in QuickBooks Online, which are as follows;
- This helps the users to spot different banking errors.
- Moreover, it helps prevent fraud by vendors, customers, employees, etc.
- In addition to this, you can spot fluctuations, and changes in income can be determined easily.
- You may also take some strict actions if there is any possibility of risk.
What are the Reasons to Undo Reconciliation in QuickBooks Online?
There are multiple reasons to undo the reconciliation in QuickBooks Online. We have explained a few of them below, have a look at them.
1-The transaction isn’t properly clear from the bank:-The QuickBooks Online application automatically checks off the transactions from the reconciliation screen that you have matched, applying the bank feed feature. But, in case you haven’t set the filters accurately, then it will eventually reconcile the transaction which isn’t cleared by the bank.
However, the users might confront another common error when there are multiple transactions for the same amount, and you have to check the wrong one during the reconciliation process. In that scenario, you may clear the same transaction again.
2-An Expense is shifted as a Transfer:-The business often enters the amount in the QuickBooks Online program, which the application considers as a transfer. In that scenario, the application automatically posts it to the account named “Uncategorized Asset.
” Unfortunately, it will never be considered an appropriate posting, and there is no other alternative to recategorize a transfer registered as an expense. All you have to do is to undo the reconciliation, remove the transfer and then add the expense appropriately.
3-Something with the Transaction Isn’t Right:-There might be certain instances when the users witnessed that, whether it is the vendor’s name, the category, the transaction, or the date of transaction, something isn’t right after reconciling the accounts. It’s possible that you can make the modifications in the information without impacting the reconciliation itself, but still, you need to undo the reconciliation.
Doing so will help the users ensure that their reconciliation reports represent the appropriate information. If you have to make changes to the date of the transaction, in that case, you have to undo the reconciliation.
4-In other instances, you must undo the reconciliation if the bank statement date was improper or not listed on an actual day.
5-You have done the bank reconciliation forcefully, and now it needs to be done adequately.
6-In other instances, you must undo the reconciliation when a transaction is appropriately checked off and notice that it isn’t cleared yet.
Here’s How To Undo Bank Reconciliation in QuickBooks Online
The users have two different situations to undo bank reconciliation in QuickBooks Online. Either you can undo it by inviting an accountant or do it manually. Below, we have provided you with the stepwise instructions for both situations; apply them accordingly.
Scenario 1: Undo Reconciliation By Inviting Your Accountant
Here, we have listed some simple instructions to undo the bank reconciliation by inviting your accountant. So, follow the steps in the same manner as illustrated below.
- To commence the process, hit the Gear icon from the upper-right corner and choose the highlighted Manage Users option.
- After this, head toward the Accountant Firms tab and select the Invite button.
- In the next step, you must add your Account Details accurately.
- Thereon, allow your accountant to undo the entire reconciliation process.
Scenario 2: Manually Undo the Reconciled Transactions One at a Time
If you desire to undo the reconciled transactions individually, you must follow the following instructions.
- In the beginning, move to the Accounting menu and hit the Chart Of Accounts option.
- After this, look for the account you wish to undo and tap on the View Register option.
- Thereon, to concentrate on this task, do the filtration to add the previous 60 days of transactions.
- Next, you must go through the column check carefully. If you see that the transaction is reconciled, you will be displayed with the sign “R.”
- Now, choose the box and tap it until you see it’s blank. With this, it will delete the entire transaction from the reconciliation.
Scenario 3: Procedure to Unreconcile in QuickBooks Online Version
The QuickBooks Online users have to follow the steps instructed below to unreconciled the bank transactions.
- In the beginning, tap on the Registers option from the Banking menu.
- After this, you must pick the account by tapping on the Register Name drop-down menu.
- Now, you have to select the transaction that you wish to unreconciled and then remove “R” from the top of the transaction to change the status to unreconciled.
- Note:- If you are planning to reconcile every transaction for a specific period, then you can first print a list of reconciled transactions via Reconcile alternative from the Banking menu.
Stepwise Instructions to Undo Bank Reconciliation In QuickBooks Online Accountant Version
Here, are the stepwise instructions to undo or remove a reconciliation in the QuickBooks Online Accountant version.
- In the first step, tap on the Gear icon from the bottom right corner of the screen.
- After this, move to the Reconcile option beneath the Tools option.
- Thereon, pick the bank account, and then you will notice an UNDO button next to the Auto Adjustment column.
- Furthermore, hover your cursor over the highlighted UNDO button.
- Ultimately, you will be displayed with a message on your screen and hit the OK button.
- Finally, you will get the success screen and click OK once again to accomplish the process.
Instructions to Unreconcile a Month in QuickBooks Online
Below, we have discussed the complete procedure to unreconciled a month in QuickBooks Online.
- First of all, launch the Reconciliation Report for the month you wish to undo.
- After this, tap the Actions drop-down menu from the top-right corner and pick the Unreconcile All Transactions from this report option.
- Now, within the Confirmation window that pops up on your screen, hit the Yes button to unreconcile all of the transactions in that particular month.
- Once the process is over, return back and examine every transaction individually to ensure that everything is accurate. Later on, if required, you must update the ending balance for the account along with a new reconciled amount.
- Moreover, you must also know that unreconciling a month may affect any report you have prepared for that particular period. Based on the accounting software you are working on, you must reprint those reports to represent the updated information.
Wrapping It Up!!
We hope you can easily undo a reconciliation in QuickBooks Online by following the above procedure. But, if you find any challenges while unreconciling accounts, then have a one-to-one conversation with our professionals. Our professionals will assist you with some useful tips to resolve your query asap.
Frequently Asked Questions (FAQs):-
Q1. What are the tips to Undo reconciliation in QuickBooks Online?
Ans. Here, we have described the following tips to undo reconciliation in QuickBooks Online.
- It is best to establish the backup of your QuickBooks files before undoing the reconciliation of their accounts.
- You must resolve the existing discrepancy exist in your account before you carry on with this process.
- Moreover, you must remove if you have made any adjustment entry in the software before you undo the bank accounts.
- You must prevent the reconciliation status of your bank transactions while you undo a reconciliation.
Q2. What are the common reconciliation errors that you must avoid?
Ans. Here, we have listed some of the common reconciliation errors that you must avoid, which are as follows;
- Duplicate payments
- Missed reconciliation
- Posting a Debit as a Credit
Q3. Does the manual undo Reconciliation in QBO work with all editions of QuickBooks?
Ans. Yes, the manual process supports all the editions of QuickBooks Online except the QuickBooks Accountant edition. This is so because the QuickBooks Accountant has its own tool to undo the reconciliation.
Q4. What should I do to unreconcile an account in the QBO application?
Ans. To unreconcile an account in the QBO application, apply the steps below.
- Firstly, move to the Accounting tab and hit the Chart Of Accounts option.
- After this, you must choose the name of the account you wish to unreconcile.
- Move to the Reconciliation section from the bottom of the page and hit the Unreconcile All or Unreconcile selected option.
- At last, from the confirmation screen, opt for the Yes button to unreconcile your account.