How to Undo Bank Reconciliation in QuickBooks Online | Easy Guide

Undoing a bank reconciliation in QuickBooks Online (QBO) is sometimes necessary when balances don’t match, transactions were entered incorrectly, or reconciled entries were edited by mistake. While QuickBooks Online allows you to undo reconciliations, it must be done carefully to avoid creating bigger accounting issues.

This guide explains when you should undo a reconciliation, how to do it step by step, common problems users face, and best practices to avoid future errors.

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When Should You Undo Bank Reconciliation in QuickBooks Online?

You should only undo a reconciliation if there is a genuine error. Common situations include:

1. Beginning balance is incorrect
2. Ending balance does not match the bank statement
3. A reconciled transaction was edited or deleted
4. Duplicate transactions were reconciled
5. Bank feed errors affected reconciliation
6. Wrong statement date or balance was entered

⚠️ Undoing reconciliations for closed tax periods should be done with professional guidance.

Important Things to Know Before Undoing Reconciliation

Before proceeding, keep these points in mind:

1. Only Admin or Accountant users can undo reconciliation
2. You can undo one reconciliation at a time
3. Undoing affects all transactions in that reconciliation period
4. Financial reports may change after undoing
5. Always review reports before making changes

How to Undo Bank Reconciliation in QuickBooks Online (Step-by-Step)

Step 1: Log in as Admin or Accountant

Sign in to QuickBooks Online using an Admin or Accountant role.

Step 2: Go to Reconciliation History

1. Click Settings ⚙️
2. Select Reconcile
3. Choose the bank account
4. Click History by Account

This section shows all completed reconciliations.

Step 3: Locate the Reconciliation to Undo

1. Find the reconciliation period you want to undo
2. Review the statement date and ending balance
3. Click View Report to confirm the issue

Step 4: Undo the Reconciliation

1. Click Undo
2. Confirm your action when prompted

QuickBooks Online will remove the reconciliation status from all transactions in that period.

Step 5: Review and Fix Errors

After undoing:

1. Review transactions carefully
2. Correct missing, duplicate, or incorrect entries
3. Check opening balance accuracy
4. Reconcile again using correct statement details

What Happens After You Undo a Reconciliation?

Once undone:

1. Transactions become unreconciled
2. Beginning balance updates for the next period
3. Bank balance may change in reports
4. You must re-reconcile the account properly

Undoing reconciliation does not delete transactions, but it removes their cleared status.

Common Problems After Undoing Reconciliation

Users often face issues such as:

1. Reconciliation still not balancing
2. Beginning balance remains incorrect
3. Duplicate bank feed transactions appear
4. Reports don’t match bank balances

These problems usually indicate deeper issues that need review.

How to Fix Reconciliation Issues After Undoing

To fix issues properly:

1. Compare transactions line-by-line with bank statement
2. Check transaction dates carefully
3. Remove duplicate bank feed entries
4. Add missing bank fees or interest
5. Avoid using reconciliation adjustment accounts unnecessarily

Can You Undo Multiple Reconciliations?

Yes, but only one reconciliation at a time, starting with the most recent.

Best practice:

1. Undo the latest reconciliation first
2. Fix errors
3. Reconcile again
4. Repeat only if necessary

Undoing multiple periods without review can cause major reporting problems.

What If You Can’t Undo Reconciliation in QuickBooks Online?

Possible reasons include:

1. You’re not logged in as Admin or Accountant
2. The account is closed or restricted
3. The reconciliation is part of a locked period
4. System or permission issues

In such cases, professional QuickBooks support is recommended.

Best Practices to Avoid Undoing Reconciliation in the Future

1. Reconcile monthly, not yearly
2. Never edit reconciled transactions
3. Review bank feeds before accepting matches
4. Keep proper user permissions
5. Always verify statement balances before reconciling

When to Get Professional Help

You should seek expert help if:

1. Reconciliation issues repeat frequently
2. Beginning balance keeps changing
3. Multiple months are affected
4. You’re preparing for tax filing or audit
5. Financial reports don’t make sense

Undoing reconciliation incorrectly can do more harm than good.

QuickBooks Online Bank Reconciliation Support

Our experts help with:

1. Undoing reconciliation safely
2. Fixing beginning balance issues
3. Correcting historical reconciliation errors
4. Cleaning up bank feed duplicates
5. Ensuring accurate and compliant books

Frequently Asked Questions (FAQs)

Can I undo a reconciliation in QuickBooks Online?

Yes, Admin and Accountant users can undo reconciliations using the History by Account option.

Does undoing reconciliation delete transactions?

No, it only removes the reconciled status.

Is it safe to undo past reconciliations?

It can affect reports and taxes, so professional guidance is advised.

Why is my beginning balance still wrong after undoing?

Usually due to edited or deleted historical transactions.

Final Thoughts

Undoing a bank reconciliation in QuickBooks Online is a powerful feature—but it must be used carefully. When done correctly, it helps fix balance issues and restore accurate records. When done incorrectly, it can create even bigger problems.

If you’re unsure, expert support ensures your QuickBooks data remains accurate, compliant, and stress-free.