Finding a mistake from a previous month in your QuickBooks Desktop file can be frustrating. Whether it’s a transaction that was accidentally assigned to the wrong account or a cleared transaction that shouldn’t have been marked as cleared, fixing past reconciliations requires a careful approach to maintain the integrity of your financial data.

Unlike simply editing a current transaction, altering a prior reconciliation involves interacting with QuickBooks’ specific tools designed to prevent bookkeeping errors. Here is a step-by-step guide on how to safely edit a previous reconciliation in QuickBooks Desktop.

The Importance of a Warning

Before making any changes, it is critical to understand that "editing" a past reconciliation doesn't mean directly changing the historical report. Instead, you must "undo" the previous reconciliation, make your corrections, and then re-reconcile the account. This ensures that your beginning balance for the next period is accurate and that your audit trail remains clear.

Step 1: Access the Reconcile Window

Navigate to the account that holds the transactions you need to correct.

• Go to the Banking menu at the top of the screen.

• Select Reconcile.

In the window that appears, you will see a drop-down menu labeled Account. Select the appropriate bank or credit card account.

Step 2: Locate the Previous Reconciliation Statement

You will see a button in the bottom-left corner of the Reconcile window labeled Locate Discrepancies. Click this.

• A new window will pop up. From here, select View Previous Reconciliation.

• This will open a report showing the status of your account as of that previous statement date.

Step 3: Undo the Previous Reconciliation

To make changes, you need to return the account to the state it was in before that specific reconciliation was completed.

• Close the report and the Locate Discrepancies window to return to the main Reconcile window.

• Look again for a button in the bottom-left corner. It should now say Undo Last Reconciliation.

• Click Undo Last Reconciliation.

QuickBooks will display a stern warning explaining that undoing a reconciliation will affect your books and that you should only do this with the guidance of your accountant. If you are sure you need to make the correction, proceed.

• You will likely be asked if you want to Delete the reconciliation or Keep it. You want to undo it, so confirm the action.

Step 4: Make Your Corrections

Once the reconciliation is undone, all the transactions that were previously marked as cleared for that period will now appear as "uncleared."

• Go back to the account register (Chart of Accounts > double-click the account).

• Find the transactions that were incorrect. You can now edit them freely, or if a transaction was mistakenly marked as cleared, you can uncheck the Cleared (√) status in the register.

Step 5: Re-reconcile the Account

Now that your corrections are made, you must officially reconcile the account again.

• Return to the Banking menu and select Reconcile.

• Enter the statement date and ending balance exactly as they appeared on the original bank statement for that period.

• In the reconciliation window, go through and check off only the transactions that actually cleared on that specific bank statement.

• Once the difference is zero, click Reconcile Now.

By completing this final step, you re-establish the correct starting point for your next reconciliation period.

What if "Undo Last Reconciliation" Isn't Available?

If you are looking at an older reconciliation and the "Undo" button is greyed out or missing, it is likely because you have reconciled periods after it. QuickBooks Desktop pro support generally only allows you to undo the most recent reconciliation. If you need to edit something from several months ago, you may need to undo multiple reconciliations, working your way forward. This can be a complex process, and it is highly recommended to consult with a bookkeeper or accountant before doing so to avoid creating significant discrepancies in your year-end reports.