Last month I focused on the “Locate Discrepancies” button that is part of the Bank Reconciliation feature in QuickBooksTM. Like the “Locate Discrepancies” button, another overlooked, but very helpful part of the Bank Reconciliation feature in QuickBooksTM is the “Undo Last Reconciliation” button. This button is located right next to the “Locate Discrepancies” button that you see when you are entering your bank statement information. It’s in the first screen, at the bottom, after clicking on “Bank Reconciliation” from the Home Page or from the Banking Menu.

Intuit recommends backing up your data before undoing a previous reconciliation, which is always a wise choice.

The “Locate Discrepancies” button and the “Undo Last Reconciliation” button are often used in conjunction with each other. If you’ve had to turn to the “Locate Discrepancies” button, but are unable to rectify the issues with your bank reconciliation using that report, it is sometimes wiser to undo your last bank reconciliations until you reach one that is correct and then re-reconcile your bank statement or statements. This can often be more accurate and less time consuming.

When you click on the “Undo Last Reconciliation” button, QuickBooksTM will tell you exactly what to expect by continuing with this process. Please read this screen. The important item to know about this process is that QuickBooksTM will not remove any of your transactions and all service charges, interest and other adjustments made to your bank account, as part of your prior reconciliation, will remain in your bank account.

The “Undo Last Reconciliation” button is really meant as a means to correct a bank reconciliation(s) that has (have) gotten off course. Just remember to use it wisely and after careful consideration.