Your reconciliation process is a crucial step in the accounting process of your business. In general, undo reconciliation in QuickBooks online indicates that all data in your books has been thoroughly verified against an external source, and your books are ready to be closed for the month. Reconciliation is, therefore, a final procedure.
In some cases, it may be necessary to undo reconciliation. Reconciliations can be from recently closed months, or reconciliations from previously closed months.
Accounting software like QuickBooks Online offers you an easy process for undoing a reconciliation. The purpose of this article is primarily to show the process that users using QuickBooks Online without a formal accounting background will use to undo reconciliations.
Reasons Why You Need to Undo Reconciliation in QuickBooks Online
Here are some reasons why you might want to undo the reconciliation. These include:-
Whenever there is a payment dated incorrectly.
There is an error in the recorded data.
If any transaction is unclear.
Bank reconciliation is mandatory and must be corrected in the order.
Here is a quick overview of the QuickBooks Online reconciliation process:
Compile statements from your bank, credit cards, and loans. As soon as you receive your bank and credit card statements, you should reconcile your accounts right away to address any discrepancies as soon as possible, but if all your statements arrive at around the same time, you can reconcile all of your accounts at once.
In the statement for the account you are reconciling, enter the Last Balance and the Date of Closing.
QuickBooks Online, mark off each transaction that appears on your statement.
In the Reconcile screen, if there is no difference, your reconciliation is complete.
Look for duplicate transactions or old checks that may need to be reissued in QuickBooks Online. Incorrect transactions should be corrected (but do not delete those that are actually still outstanding).
In this step, you have confirmed that the information on your statement correlates with the information in your accounting records, you know which transactions were still outstanding at the time of the statement closing date, and you have corrected any incorrect information in QuickBooks Online.
Undo Reconciliation in QuickBooks Online: What Are the Advantages?
The following are some advantages of undoing reconciliation accounts:
Income fluctuations can easily be determined.
Different bank errors are easily captured.
It helps in preventing fraud committed by vendors, customers, and employees.
A major action can be taken if there is a risk.
How to Undo a Reconciliation in QuickBooks Online?
If you wish to undo a reconciliation, open its Reconciliation Report. On the left-hand toolbar, click on Reports, then select Reconciliation Reports.
To undo a reconciliation, select the account and statement you wish to undo, and click View Report.
Duplicate the reconciliation tab and move it to a separate monitor or print it. As you undo the reconciliation, you can quickly reference the report as you work.
Click Accounting on the left-side toolbar, then selectChart of Accounts to open the register for the account you are unreconciling. After it appears, click View Register.
Using the Bank Register, scroll down until you see the transactions you want to unreconciled. R stands for matched or bank feed, but not yet reconciled. C stands for reconciled, but not yet reconciled.
Make sure the box with the R is clear before clicking Save. When you try to reconcile your accounts for the next time, you’ll see a warning pop-up. Select Yes if you are sure you want to undo reconciliation. Each time you wish to unreconciled a transaction, repeat this process.
Our article outlines all the aspects related to “How to undo last reconciliation in QuickBooks Online” and we hope you got all the answers that you came looking for. For any more assistance, you can get in touch with the QuickBooks experts and seek top assistance.