Reconciling accounts shows that all data in your accounts have been confirmed against an external source. It is a sign for you to close your books for a particular month. However, sometimes you might need to undo reconciling your saving, checking, and credit card accounts. Suppose you use the renowned accounting software QuickBooks and need to do so.
In that case, you might wonder how to undo reconciliation in QuickBooks online. Reasons like income variations, incorrect payment dates, and possible risks make unreconciling necessary.
You can undo reconciliation in QB Desktop easily in a single step. But on using QuickBooks Online bank reconciliation, unreconciling every transaction individually is crucial. In this post, you’ll find how to properly undo and delete bank reconciliation in QuickBooks Online.
How to Undo Bank Reconciliation in QuickBooks Online?
Undoing bank reconciliation in QuickBooks Online isn’t quite challenging. You just need to follow the instructions carefully.
- Firstly, open the report of reconciliation for undoing the specific reconciliation. Now, tap the ‘Reports’ present on the left-side toolbar.
- Now, search reconciliation reports.
- Select the statement and accounts you wish to undo reconciliation for. Then, tap ‘View Report.’
- Duplicate the tab or print the report.
- Now, shift the tab containing the reconciliation report to another monitor. Through it, you’ll be able to reference the report when working on undoing reconciliation.
- Next, launch the register for that account which you are unreconciling. To do it, hover your mouse over ‘Accounting’ present on the left-side toolbar.
- Now, choose ‘Chart of Accounts.’
- When this chart appears, tap ‘View register.’
- After that, go down to the screen of ‘Bank Register.’
- Stop only when you actually view the transaction you wish to un-reconcile. The letter R indicates these transactions.
- You also have the option to filter the transactions. It will make only those transactions that are reconciled appear.
- Now, tap the box with the letter R till it’s clear. Then, tap ‘Save.’
- Tap ‘Yes‘ in the warning that appears regarding your changes putting you out of balance when you attempt to reconcile later.
- You need to repeat the same exact process for every single transaction you wish to un-reconcile.
- Next, tap the ‘Reconcile’ button. You can see it in the top-right corner.
- A warning will appear saying that your account isn’t ready for reconciling because your starting balance is off by the amount of the transaction(s) you un-reconciled.
- Tap the ‘We can help you fix it button to review the transaction you un-reconciled earlier.
- Check that these perfectly match with the transaction you wish to un-reconcile.
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How to Undo a Reconciliation in QuickBooks Online Accountant (QBOA)
You just need to follow a few steps in order to undo reconciliation in QuickBooks Online Accountant version. Here is the exact process you must adhere to.
- Hit the ‘Gear‘ icon present on the top-right part of your screen.
- After that, head over to the ‘Reconcile’ option that is below ‘Tools.’
- Next, opt for your bank account.
- You will now find a button of ‘Undo‘ beside the column of Auto Adjustment. You just need to hit the ‘Undo’ button.
- Next, you will get a message on your screen. Hit ‘OK.’
- A success screen will come up. You can click ‘OK.’
How to Undo Reconciliation in QuickBooks Online Accountant for a Whole Month
Many people need to unreconciled or delete reconciliation for an entire month or a specific period. Undoing a reconciliation can only be done by your accountant.
It is to prevent it from happening accidentally. An accountant who is connected with your QuickBooks desktop Online account can remove a reconciliation by following a few easy steps. These are as follows:
- After signing in as an accountant user in QBOA, choose the client from the dropdown present on the ‘Toolbelt.’ It will open the company file of the client.
- Next, choose the ‘Gear’ icon available on the ‘Toolbar.’
- Next, below ‘Tools’, pick ‘Reconcile.’
- Now opt for ‘History by account‘ on the page of ‘Reconcile an account.’
- On the page ‘History by account‘ choose ‘Account‘ and ‘Report Period‘ to find the reconciliation to remove.
- In the ‘Action‘ column dropdown, pick ‘Undo.’
- Choose ‘Yes‘ when asked to confirm.
- In the last confirmation window, choose ‘Undo.’
- Lastly, pick ‘OK.’
IMPORTANT NOTE: When a reconciliation is removed automatically, it also removes any reconciliation after it. It is done chronologically.
How to Retrieve a Deleted Transaction in QuickBooks?
There is no definite way to recover a deleted transaction in QB. But you can attempt to recover the transaction through the steps outlined below. Follow them to restore your transactions on the ledger.
- Tap ‘Reports‘ and choose ‘Account and Taxes.’
- The next step is to click the ‘Voided/Deleted Transactions.’
- Now type in the specific date when you deleted this transaction.
- Now, enter the transaction again.
NOTE: You will not be able to recover purchase and sales order transactions. It’s because these aren’t posted to your ledger.
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What Are the Reasons to Undo Reconciliation in QuickBooks Online?
Reconciling accounts is essential for businesses as it compares data against bank statements and confirms their accuracy. Essentially, it confirms that your books are complete.
However, in case of discrepancies, you must carry out a reconciliation in QuickBooks Online. Some of the prominent reasons for doing reconciliation are as follows:
To check uncleared transactions:
Many users mistakenly setup incorrect filters in their software. As a result of it, they end up reconciling a transaction that hasn’t been cleared. It results in various issues afterward.
At times, you will find your QBO inputting transactions as a transfer which posts it to an asset account that is not categorized. This whole method of data entry is faulty.
It also makes you unable to categorize the transfer transactions correctly again. So, you must know how to undo reconciliation in QuickBooks Online. That is how you will be able to re-enter the correct data in the proper account.
Mistakenly checking the wrong transaction while reconciling:
A lot of times, you may find more than a single transaction on your books for the exact amount. In such a case, users unknowingly check the wrong transaction while reconciling.
It, in turn, makes the transaction appear to clear another time in the approaching months. Not only this, but sometimes you can also enter the wrong vendor’s name, date, or category and realize it afterward. So, it’s essential to do reconciliation in order for your records to be fully accurate.
The Process to Undo Reconciliation in QuickBooks Desktop
It’s very simple to undo reconciliation in QuickBooks Desktop. Just follow the points below.
- Begin by opening QuickBooks.
- Sign in as an Administrator.
- Next, you need to select the company file.
- Now, navigate to the ‘Banking‘ menu and tap ‘Reconcile Now.’
- Lastly, tap the ‘Undo last reconciliation‘ button. That’s it. This simple process is all you need to follow for undoing reconciliations in QB Desktop.
Knowing how to undo reconciliation in QuickBooks Online will save you from committing many costly mistakes. Follow the steps to remove a reconciliation in QuickBooks Online, QuickBooks Online Accountant, and QuickBooks Desktop. It will boost the accuracy of your bookkeeping.
If you need additional help with the process or cannot do reconciliation by yourself, connect with a QB technical support service. The experts will help you navigate all the problems.