1. How to Undo a Reconciliation in QuickBooks Online
Important: Only QuickBooks Online Accountant users can undo an entire reconciliation with one click. Regular business users can manually unreconcile transactions one by one.
A. If You Are Using QuickBooks Online Accountant (QBOA)
- Go to Accounting > Reconcile.
- Choose the bank/credit card account.
- Click History by account.
- Pick the reconciliation you want to undo.
- Click the action down-arrow.
- Choose Undo.
- Confirm the undo process.
QBO will automatically:
- Undo the entire period
- Reset all R’s to blank
- Reverse adjustments
- Restore the beginning balance
B. If You Are NOT Using QuickBooks Online Accountant
You must manually unreconcile transactions.
- Go to Accounting > Chart of Accounts.
- Find your bank/credit card account > View Register.
- Click on any transaction marked “R”.
- Change it to “C” (Cleared) or blank (Not cleared).
- Save.
To undo a whole month, repeat this for every reconciled transaction in that period.
C. If You Only Need to Fix a Single Error
Minor corrections often do not require undoing the whole reconciliation. Examples:
- Wrong category used
- Wrong payee
- Memo or description correction
- Split change that doesn’t affect amount
- Late-clearing item found later
How to fix without undoing:
- Edit the entry.
- Leave it marked R.
- QBO will post the correction to the current period.
- Your past reconciliation stays intact.
2. Consequences of Undoing a Reconciliation
Undoing a reconciliation in QBO has several effects:
A. Beginning Balances Will Change
Your beginning balance for future months will be incorrect until everything is re-reconciled.
B. All Reconciled Transactions Become Unreconciled
- Every R becomes blank.
- You must redo the entire month manually.
- If undoing multiple months, redo each one in order.
C. Financial Reports May Change
Undoing may affect:
- Profit & Loss
- Balance Sheet
- Cash basis vs accrual reports
- Statement of cash flows
Especially if entries are edited or amounts corrected after undoing.
D. Any Adjusting Entries Are Removed
Reconciliation adjustments used to force a match will be reversed.
E. Audit Log Will Track All Changes
QBO logs:
- Who undid the reconciliation
- What period was undone
- What transactions changed
F. Extra Work to Reconcile Again
- Re-do the reconciliation line-by-line.
- Ensure no duplicates exist.
- Find every mismatched or missing transaction.
Bottom Line
- Undo only when necessary (major errors, wrong statement, duplicate month, etc.).
- Minor errors can be fixed without undoing.
Need Help Deciding?
Provide the account (bank/credit card), the month you’re concerned about, and what mistake you found to determine if undoing is necessary.