Auto Bookkeeping: Why is there a discrepancy?

After enabling Auto Bookkeeping, you may see the following pop-up:

While there are several different ways you can record Fundbox transactions in your QBO account that adhere to generally accepted accounting principles, Fundbox has adopted a very simple approach.  Here’s how we do it. 

If you previously recorded Fundbox transactions manually, you may encounter a discrepancy when you activate auto bookkeeping.

Some of the most common reasons are listed below. Please note that the list is not inclusive of all reasons for a discrepancy. Fundbox recommends consulting with your accounting professional before making an adjustment.

If the amount currently recorded is lower than Fundbox’s calculation:  

  • The fees portion of the repayment was recorded as a reduction to the liability. Solution: the fees should be reclassified as an expense 
  • The advance was “matched” with an outstanding invoice. Solution: Make sure that Fundbox advances never mark invoices as paid.  Your receivables should only be marked as paid when funds are received from your customer. 
  • Fundbox advances were not recorded in a liability account. Solution: Please adjust to the amount provided by Fundbox. Any fees associated with previous advances should be recorded as expenses.  

If the amount currently recorded is higher than Fundbox’s calculation:

  • Fundbox repayments were not recorded in a liability account. Solution: All repayments should reduce the liability amount by the difference between the cash paid and the fees expensed.

 

 

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