How to Undo a Reconciliation in QuickBooks Online

To undo a reconciliation in QuickBooks Online, review your account history, select the statement, and unreconcile specific transactions or the entire period. This step is often necessary when transactions were matched incorrectly, duplicate entries exist, or adjustments were made after the reconciliation was completed.

Understand What Undoing a Reconciliation Means

Undoing a reconciliation does not delete your transactions—it simply changes their reconciliation status. Once undone, the transactions will appear as unreconciled, and you’ll need to redo the reconciliation correctly.

For example:

• If you reconciled a payment of $500 that shouldn’t have been included, undoing will make that payment available again for the next reconciliation cycle.
• This may affect your opening balance for the next reconciliation, so proceed carefully.

Access the Reconciliation History

To undo a reconciliation in QuickBooks Online, you first need to open the reconciliation history.

1. Log in to QuickBooks Online.
2. From the left navigation menu, select Settings ⚙️.
3. Click Reconcile under the Tools section.
4. At the top-right, select History by Account.

Here you’ll see a list of completed reconciliations by account, including the statement ending dates and the users who performed them.

Locate the Reconciliation to Undo

1. From the History by Account page, select the account (e.g., checking account, savings account, or credit card account).
2. Review the list of reconciliations.
3. Find the reconciliation period you want to undo.

For example: If your July 2025 reconciliation contained errors, scroll down to that month and locate the closing statement.

Undo the Reconciliation

QuickBooks Online currently allows you to undo individual transactions from a reconciliation, but only QuickBooks Online Accountant (QBOA) users can undo the entire reconciliation in one step.

If you’re using QuickBooks Online (standard version):

1. Open the transaction by clicking on it from your bank register.
2. Look for the checkmark in the ✔ column (reconciliation status).
   
   • C means cleared.
   • R means reconciled.
   • Blank means not reconciled.
3. Click the field until it’s blank to remove the reconciliation.
4. Save the changes.

You’ll need to repeat this for each transaction included in that reconciliation.

If you’re using QuickBooks Online Accountant:

1. From the History by Account page, select the reconciliation you want to undo.
2. Click the Undo option.
3. Confirm your choice.
4. QuickBooks will reset the entire reconciliation and adjust your beginning balance accordingly.

Reconcile Again Correctly

After undoing, you’ll need to redo the reconciliation to ensure your books are accurate.

• Go to Settings ⚙️ > Reconcile.
• Select the same account and re-enter the correct statement ending balance and date.
• Carefully match transactions line by line.

Tip: Use the Reconciliation Discrepancy Report to identify what caused the error before reconciling again.

Example: Undoing a Mis-Reconciled Transaction

Let’s say you reconciled a $1,000 payment to a vendor in August, but the vendor later refunded you $500, which should not have been part of that reconciliation.

When you undo the reconciliation for that payment:

• The $1,000 transaction will become unreconciled.
• You can then record the $500 refund properly.
• Finally, redo the reconciliation with the corrected amounts.

Bonus Tip: Integrate DepositFix with QuickBooks for Easier Reconciliation

If you find yourself reconciling often because of online payments, here’s a tip: integrate DepositFix with QuickBooks Online. DepositFix automatically syncs payments from your website or CRM directly into QuickBooks, reducing manual entry and reconciliation errors. Instead of chasing down which payment belongs to which invoice, the integration maps them automatically, saving you time and ensuring accuracy when reconciling.