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Finding and Fixing Discrepancies

Last updated on May 02, 2026

What to do when reconciliation doesn't balance

You're reconciling. The provider's ending balance is $14,775. BitBooks says $14,800. Difference: $25.

Don't panic. Don't reconcile anyway just to make it go away. Don't reconcile and adjust. Find the cause first.

This article walks through the diagnostic process.

Step 1: confirm the magnitude of the difference

Sometimes "the balance is off" is a misread. Re-check both numbers. Make sure:

  • You're looking at the same period on both sides (same start and end dates)
  • The provider's ending balance is the period-ending balance, not the live current balance
  • The currency is the same (no accidental USD vs CAD confusion)

If the difference disappears: you're good. Reconcile.

If the difference is real: continue.

Step 2: identify the direction

Is BitBooks higher or lower than the provider?

  • BitBooks is higher. You're claiming money you don't actually have. Either you have an extra transaction in BitBooks that didn't happen, or you're missing an expense (money out) that did happen.
  • BitBooks is lower. You're missing money the provider says you have. Either you didn't record an income transaction that came in, or you have an extra expense in BitBooks that didn't happen.

Direction narrows the search by half.

Step 3: find the difference, by likely cause

The most common causes, ordered by frequency:

Bank/wallet fees not entered

Banks deduct fees automatically. If you didn't enter them, BitBooks shows higher than the bank.

Look at the provider's statement for any fee lines. Add them to BitBooks as expense transactions. Re-check the balance.

For Bitcoin wallets, look for network fees on on-chain transactions or routing fees on Lightning.

Interest credited

Banks credit interest. If you missed it, BitBooks is lower than the bank.

Add it as an Interest Income transaction.

Pending transactions at the provider

If the provider counts pending in their balance and BitBooks doesn't (or vice versa), you'll see a difference equal to the sum of pending transactions.

Check the provider's pending list. Reconcile based on the official period statement, not the live view that includes pending.

Duplicates from manual + auto

You entered a transaction by hand. Then auto-sync also imported it. Now you have two entries for one event. BitBooks shows higher than the provider by the duplicated amount.

Find the duplicate (same date, same amount, same direction). Delete or reverse the manual one (the auto-synced one will keep coming back if you delete it).

Wrong amount on a BitBooks entry

A typo. Someone entered $1,500 instead of $1,000. BitBooks is off by $500.

Drill into your largest transactions. The bigger the typo, the more likely you'll spot it in a list of amounts.

Missing transaction

A transaction at the provider that BitBooks doesn't have. Sync glitch, manual entry skipped, lost in the shuffle.

Run a sync first (for connected wallets). If still missing, enter it manually.

Wrong-wallet entries

A transaction was recorded against the wrong wallet. The wallet you're reconciling is missing it; another wallet has an extra entry.

Look at recent activity on related wallets. If you find a transaction that's in the wrong place, edit (if Draft) or reverse + re-enter on the right wallet.

Opening balance error

The wallet's opening balance was wrong from the start. Every running balance has been off ever since.

Verify the opening balance against the wallet's actual balance on its start date. If it's wrong, the fix is delicate; talk to support.

Period close mid-period

If the period was closed and someone reopened to make changes, the changes may have shifted the balance you're reconciling against. Check the Activity Log for any changes during the period.

Step 4: a hidden trick the divisible-by-9 hint

If the difference is divisible by 9, you may have a transposition error. Examples:

  • $54 difference: maybe a $36 was entered as $63 (digits swapped)
  • $90 difference: maybe a $50 was entered as $140 (zero added/lost)

This isn't always the cause, but it's a useful first guess for small differences with that pattern.

Step 5: the Activity Log

If you can't find the cause, run the Activity Log report (Reports → Activity Log) for the period and the wallet. Every change, every entry, every reversal is listed.

Filter by:

  • Wallet (or related Chart of Accounts entry)
  • Date range matching the reconciliation period

Look for:

  • Recent edits to old entries (someone changed something post-reconciliation?)
  • Reversals (any entries reversed during the period?)
  • Bulk operations (was a bulk-post or bulk-reverse run that affected this wallet?)

The Activity Log often surfaces the cause when the transaction list doesn't.

Step 6: contact support

If you've worked through Steps 1-5 and still can't identify the cause, contact support. Send:

  • The wallet name
  • The period being reconciled
  • The exact discrepancy amount
  • Whatever you've already checked

We'll dig in. Some discrepancies are bugs (rare but possible) and we want to know about them.

What NOT to do

Don't post a "plug entry"

The wrong move: see a $25 difference, post an entry titled "Reconciliation adjustment $25" to make it balance. This buries the actual cause and makes the books harder to audit later.

If you genuinely cannot find the cause and need to move forward, post a properly-named entry to a "Suspense" or "Reconciliation Discrepancy" account, with a memo explaining what you tried. This is honest about the situation.

Always treat plug entries as temporary. Investigate the cause when you have time.

Don't reconcile and "adjust the difference"

Don't tick everything as reconciled and tell yourself you'll figure out the difference later. Once reconciled, the wallet's verified balance is locked in at the wrong number. Future reconciliations inherit the error.

Find the cause first, fix it, then reconcile cleanly.

Don't ignore the difference

A small difference today is a $5 problem. The same difference compounded over a year as you reconcile around it is a $60 problem and several hours of investigation. Always investigate when small.

A worked example

Reconciling Chase Business Checking for March 2026.

Beginning balance: $25,000. BitBooks ending: $32,400. Bank ending: $32,381. Difference: BitBooks higher by $19.

Step 1-2: difference is real, BitBooks is higher.

Step 3: scan for likely causes.

  • Bank fees? Look at the statement. Yes, a $19 wire fee on March 14 the bank charged. BitBooks doesn't have it.
  • Add transaction: Chase Business Checking, money out, $19, March 14, category "Bank Fees," memo "Outgoing wire fee per statement."
  • Save and post.

Re-check: BitBooks ending now $32,381. Matches bank. Reconcile.

Total time: 5 minutes.

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