Bank reconciliation is part of the accounting month-end process. The accountant compares and reconciles the bank ledger with the bank statement. The current month’s reconciliation closing balance will be the following month’s opening balance once finalised.
One of the common mistakes in reconciliation is clearing a wrong transaction. For example, you may have a few payments (or receipts) with a similar amount within the same month. And you accidentally clear off an uncleared transaction during reconciliation. You may rectify the issue with a correction journal or remove the last reconciliation from QuickBooks Desktop.
The ‘undo last reconciliation’ feature is within the reconciliation wizard. Launch the reconciliation wizard from the banking menu, select the bank ledger account you wish to undo, and click the ‘undo last reconciliation’ button to remove the reconciled history from the QuickBooks Desktop.
You can only undo the last reconciliation from QuickBooks. Repeat the undo reconciliation process if the reconciliation you wish to undo was from an earlier period. For example, you have already reconciled until April 2023. You have to undo April 2023 reconciliation, then follow by March and February 2023 if you wish to undo the February 2023 reconciliation.
You cannot jump straight to undo the February reconciliation alone without first undoing April and March, as the current month’s reconciled closing balance is the following month’s opening balance.
Bank reconciliation can be tedious (sometimes), but it helps to spot mistakes such as data entry errors, duplicates, or missing transactions.
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