Here is the scenario - It is the end of the year and you have not reconciled any of your bank statements yet. So you have the entire year to reconcile in your QuickBooks Online company file. You begin your reconciliations and everything seems to go fine. Then — you get to the month of September and realize that you have made some mistakes back in the month of May and need to correct them. These could be various mistakes. For example: You deleted reconciled transactions and now your cash balance does not equal the reconciled balance in the reconciliation reports.

But how do you “fix” this problem? — If you go to the Online Help screen- you will not see much there. And if you have ever worked in the Desktop version of QuickBooks you know how easy it is to “Un-do” reconciliations. However, QuickBooks Online is a different animal all together. That same fix will not help you here.

Here is what you can do and it really works! I had to do this a few days ago - so you will not get messed up.

1. Go to the Bank Register and select the account that you are reconciling.
2. You will need to Un-do all reconciled items back to the point where you made the Errors. (Ex: If you are currently working in the September reconciliation screen and need to go back to May you will need to Un-Do: September,August, July, June, and May.
3. In the Bank Register, you will need to replace all “R”s in the Reconciled Status column - denoted by a Check Mark - with “C”’s. This means that you are reclassifying all transactions from Reconciled to Cleared but not reconciled.

Once you have done this - you have completed the “Un-Do” Reconciliation and are now ready to fix your errors and reconcile again. It is that easy!

I was not able to find this simple explanation in the QuickBooks Online Help screen. They make it sound much more complicated than it is and explain the concept in very vague terms.