{"id":2349,"date":"2020-12-08T13:05:23","date_gmt":"2020-12-08T13:05:23","guid":{"rendered":"https:\/\/whiz-consulting.com\/au\/blog\/how-to-detect-discrepancies-in-bookkeeping-and-possible-reasons-behind-the-same\/"},"modified":"2026-06-11T14:29:00","modified_gmt":"2026-06-11T14:29:00","slug":"detect-fix-bookkeeping-discrepancies","status":"publish","type":"post","link":"https:\/\/www.whizconsulting.net\/au\/blog\/detect-fix-bookkeeping-discrepancies\/","title":{"rendered":"How to Detect, Fix, and Prevent Discrepancies in Business Bookkeeping"},"content":{"rendered":"<p>Bookkeeping discrepancies are differences between what your business records show and what actually happened in your bank, payroll, GST, supplier, or customer accounts. For Australian businesses, these errors can affect BAS lodgements, GST claims, payroll reporting through STP, and year-end financial accuracy.<\/p>\n<p>The best way to handle discrepancies is simple: detect the issue early, diagnose the cause, fix it correctly, and prevent it from happening again. This guide focuses strictly on troubleshooting bookkeeping discrepancies in an Australian business context.<\/p>\n\t   <div class=\"blog-cta-card blog-cta-card-2\">\r\n    <img decoding=\"async\" src=\"https:\/\/www.whizconsulting.net\/au\/wp-content\/uploads\/2025\/05\/data-to-dollar.webp\" alt=\"cash balance | Whiz Consulting | Internal image for blog\" title=\"\">\r\n    <div class=\"cta-content\">\r\n\t\t<div class=\"txt_lft\">\r\n\t\t\t   <h3 style=\"color:#fff\">Bookkeeping Discrepancies Fixed<\/h3>\r\n        <p>Find errors, fix records, and keep BAS-ready books.<\/p>\r\n\t\t<\/div>\r\n     <div class=\"cta_rt\">\r\n\t\t<a class=\"mainbtn drk\" href=\"https:\/\/www.whizconsulting.net\/au\/services\/online-bookkeeping-services\/\"><span>Know More<\/span> <svg height=\"24px\" viewBox=\"0 -960 960 960\" width=\"24px\"><path d=\"m256-240-56-56 384-384H240v-80h480v480h-80v-344L256-240Z\"><\/path><\/svg><\/a>\r\n\t\t<\/div>\r\n        \r\n    <\/div>\r\n<\/div>\r\n<style>\r\n.blog-cta-card {\r\n        display: flex;\r\n    align-items: center;\r\n    background: #2E277B; \r\n    border-radius: 10px;\r\n    overflow: hidden;\r\n    padding: 10px 20px;\r\n    margin: 20px 0;\r\n    box-shadow: 0 0 15px 0 #dddddd;\r\n    border-left: solid 8px #2e277b;\r\n}\r\n.blog-cta-card img {\r\n    width: 20%;\r\n    height: auto; max-height:100px; object-fit:contain;\r\n}\r\n.cta-content {\r\n    padding: 10px; display:flex; width:100%; justify-content:space-between; align-items:center;\r\n}\r\n.cta-content h3 {\r\n    margin:0 0 0px;\r\n    font-size: 32px;\r\n}\r\n.cta-content p {\r\n    font-size: 16px;\r\n    color: #fff; margin:0;\r\n}\r\n\t.mainbtn.drk::after{ background:#05d69f;}\r\n\t.mainbtn.drk:hover{ background:#05d69f;}\r\n.cta-button {\r\n    display: inline-block;\r\n    padding: 10px 15px;\r\n    background: #09D7A1;\r\n    color: #fff;\r\n    text-decoration: none;\r\n    border-radius: 5px;\r\n    margin-top: 10px;\r\n}\r\n.cta-button:hover {\r\n    background: #0056b3;\r\n}\r\n\t@media screen and (max-width: 767px) {\r\n\t\t.cta-content, .blog-cta-card{ flex-flow:wrap;}\r\n\t\t.cta-content{ padding:15px 0 0;}\r\n\t\t.cta-content h3{ font-size:28px;}\r\n\t\t.cta-content p{ margin:0 0 15px;}\r\n\t}\r\n<\/style>\r\n\t    \r\n\r\n\r\n\n<h2>What are the Different Types of Discrepancies in Bookkeeping?<\/h2>\n<ul>\n<li><strong>Transaction errors:<\/strong> Incorrect amounts, duplicate entries, or missing records in daily bookkeeping.<\/li>\n<li><strong>Bank reconciliation differences:<\/strong> Mismatches between bank statements and accounting records.<\/li>\n<li><strong>Invoice discrepancies:<\/strong> Unpaid, duplicated, wrongly coded, or incorrectly recorded invoices.<\/li>\n<li><strong>Payroll errors:<\/strong> Incorrect wages, superannuation, deductions, or tax withholdings.<\/li>\n<li><strong>Tax reporting issues:<\/strong> GST, BAS, PAYG, or sales tax entries recorded inaccurately.<\/li>\n<li><strong>Timing differences:<\/strong> Payments or receipts recorded in the wrong accounting period.<\/li>\n<\/ul>\n<h2>What Causes Discrepancies in Your Business Bookkeeping?<\/h2>\n<p>Most bookkeeping discrepancies come from process gaps, incorrect coding, or unreviewed automation. In Australia, GST and payroll reporting make these errors more serious because they can flow directly into BAS and STP records.<\/p>\n<h3>Common causes include<\/h3>\n<ul>\n<li><strong>Incorrect GST coding:<\/strong> A purchase may be coded as GST-inclusive when it should be GST-free, input taxed, or outside the GST system. This can distort the GST collected or GST paid figures on your BAS.<\/li>\n<li><strong>Unmatched bank transactions:<\/strong> Bank feeds are useful, but they still need correct matching. If a payment is added as a new transaction instead of matched to an existing bill or invoice, balances can become inaccurate.<\/li>\n<li><strong>Duplicate invoices or bills:<\/strong> A supplier invoice may be entered from an email and again from a PDF upload. This inflates expenses and accounts payable.<\/li>\n<li><strong>Timing differences:<\/strong> A customer may pay on 30 June, but the payment appears in the bank feed on 1 July. If not handled properly, this can affect year-end reporting.<\/li>\n<li><strong>Payroll mapping errors:<\/strong> STP discrepancies can happen when allowances, superannuation, PAYG withholding, or employee categories are mapped incorrectly in payroll software.<\/li>\n<li><strong>Manual journal mistakes:<\/strong> Journals posted to fix earlier errors can create new discrepancies if they are not supported by clear notes and source documents.<\/li>\n<li><strong>Software migration issues:<\/strong> When moving from spreadsheets to bookkeeping software such as Xero, MYOB, or QuickBooks, opening balances may not match the prior year\u2019s final accounts.<\/li>\n<\/ul>\n<h2>How to Detect Discrepancies in Your Books?<\/h2>\n<p>The detection stage is about finding where the numbers stop agreeing. Do not start fixing before you know exactly where the difference sits.<\/p>\n<h3>Detect Step 1: Reconcile bank accounts to the cent<\/h3>\n<p>Check 1: Are your bank statements reconciled to the cent?<br \/>\nIf not, compare the closing bank statement balance with the balance recorded in your bookkeeping tool for the same date.<\/p>\n<p>While using a bookkeeping tool, review the bank reconciliation summary, unreconciled transactions, calculated statement balance, and any transactions that were changed after a previous reconciliation. These areas usually reveal whether the issue sits in missing entries, duplicate transactions, incorrect dates, or changes made after reconciliation.<\/p>\n<h3>Detect Step 2: Review GST and BAS reports<\/h3>\n<p>Check 2: Do your GST control accounts match your BAS report? If not, review GST coding by transaction type.<\/p>\n<p>Look for purchases coded with GST where no GST applies, overseas transactions incorrectly coded, private expenses claimed through the business, or sales assigned to the wrong GST category.<\/p>\n<h3>Detect Step 3: Compare payroll reports with STP records<\/h3>\n<p>Check 3: Do payroll reports match what has been submitted through STP? If not, compare gross wages, PAYG withholding, superannuation, and allowances.<\/p>\n<p>STP mismatches usually show up when payroll categories are mapped incorrectly or when a pay run is changed after submission without an update event.<\/p>\n<h3>Detect Step 4: Check aged receivables and payables<\/h3>\n<p>Check 4: Are old unpaid invoices still sitting in accounts receivable or accounts payable? If yes, they may be duplicated, already paid, incorrectly allocated, or genuinely overdue.<\/p>\n<p>Review customer and supplier statements against your ledger. Old balances are often where hidden discrepancies sit.<\/p>\n<h3>Detect Step 5: Run year-end checks before 30 June close<\/h3>\n<p>Check 5: Are your balance sheet accounts clean before the Australian financial year-end? If not, review clearing accounts, loan accounts, GST accounts, payroll liabilities, suspense accounts, and director drawings before finalising reports.<\/p>\n<h2>How to Fix Discrepancies in Your Books?<\/h2>\n<p>Fixing bookkeeping discrepancies should be controlled, documented, and traceable. A rushed correction can make the problem worse.<\/p>\n<h3><strong>Diagnose first<\/strong><\/h3>\n<p>Before posting a journal or changing a transaction, identify the source. Ask:<\/p>\n<ul>\n<li>Is the error in the bank feed, invoice, bill, payroll, GST code, opening balance, or BAS report?<\/li>\n<li>Was the transaction duplicated, omitted, miscoded, or entered in the wrong period?<\/li>\n<li>Has the BAS already been lodged?<\/li>\n<li>Has the payroll information already been submitted through STP?<\/li>\n<\/ul>\n<h3>Fix bank reconciliation discrepancies<\/h3>\n<p>If the bank does not reconcile, start with unmatched transactions. Match payments to the correct invoices or bills. Remove duplicates only after confirming they are not genuine transactions. If a transaction was reconciled incorrectly in a prior period, unreconcile and correct it carefully.<\/p>\n<h3>Fix GST and BAS discrepancies<\/h3>\n<p>If the issue affects GST, correct the GST code in the accounting software and review the BAS impact. If the BAS has already been lodged, check whether the error can be corrected in a later BAS or whether the earlier BAS needs revision. Keep a note of the original period, the correction period, and the reason for the adjustment.<\/p>\n<h3>Fix payroll and STP discrepancies<\/h3>\n<p>If payroll figures do not match STP records, do not manually adjust the accounts without checking payroll reports first. Correct the pay run or payroll category mapping in the payroll system, then submit the required update through STP. Make sure employee year-to-date figures are correct before finalisation.<\/p>\n<h3>Fix accounts payable and receivable discrepancies<\/h3>\n<p>For supplier discrepancies, compare the supplier statement with bills, payments, and credits in your system. Reverse duplicate bills, allocate payments correctly, and enter missing credit notes.<\/p>\n<p>For customer discrepancies, match deposits to invoices, correct overpayments, apply credit notes, or write off bad debts only when there is a valid business reason.<\/p>\n<h3>Fix software-specific discrepancies<\/h3>\n<p>When using a bookkeeping tool, review the areas where discrepancies commonly appear: reconciliation reports, GST audit reports, tax codes, payroll category mapping, linked accounts, changed transactions, deleted entries, and transactions posted to the wrong period.<\/p>\n<p>Also check whether opening balances, suspense accounts, clearing accounts, and historical adjustments have been entered correctly. These areas often explain why the ledger, BAS report, payroll records, or bank reconciliation does not match.<\/p>\n<p>Every correction should leave a clear trail. Add notes where possible, keep supporting documents, and avoid making direct journal entries unless you understand the accounting and compliance impact.<\/p>\n<h2>How can Australian Businesses Prevent Discrepancies in Bookkeeping?<\/h2>\n<p>Prevention is about building review points into the bookkeeping process, not waiting until BAS or year-end.<\/p>\n<p>Use this checklist regularly:<\/p>\n<p><strong>Check 1:<\/strong> Are your bank statements reconciled to the cent? If not, identify unreconciled or duplicated entries before lodging BAS.<\/p>\n<p><strong>Check 2:<\/strong> Are GST codes reviewed before BAS lodgement? If not, run a GST transaction report and check unusual tax treatments.<\/p>\n<p><strong>Check 3:<\/strong> Do payroll reports match STP submissions? If not, correct payroll mapping before employee finalisation.<\/p>\n<p><strong>Check 4:<\/strong> Are supplier statements matched against accounts payable? If not, request monthly statements from key suppliers.<\/p>\n<p><strong>Check 5:<\/strong> Are customer payments matched to invoices? If not, review aged receivables before month-end close.<\/p>\n<p><strong>Check 6:<\/strong> Are suspense and clearing accounts empty or explainable? If not, investigate before final reports are prepared.<\/p>\n<p><strong>Check 7:<\/strong> Are prior-period changes reviewed? If not, restrict backdated edits and check any changes after BAS lodgement.<\/p>\n<p><strong>Check 8:<\/strong> Are June 30 balances reviewed before year-end finalisation? If not, run a full balance sheet check before tax preparation.<\/p>\n<p><strong>The strongest prevention method is a recurring review cycle:<\/strong> weekly bank reconciliation, monthly GST review, monthly payroll review, quarterly BAS review, and detailed June 30 year-end checks.<\/p>\n<h2>Avoid Discrepancies in Your Books by Choosing the Skilled Bookkeeping Expertise<\/h2>\n<p>Bookkeeping discrepancies can affect BAS accuracy, GST reporting, STP payroll records, supplier balances, customer accounts, and year-end financial statements.<\/p>\n<p>For Australian businesses, the safest approach is to treat discrepancies as a troubleshooting process: detect the mismatch, diagnose the cause, fix the entry correctly, and prevent the issue from recurring.<\/p>\n<p>Employing skilled bookkeeping expertise helps businesses identify errors before they become compliance problems.<\/p>\n<p>At <a href=\"https:\/\/www.whizconsulting.net\/au\/\" target=\"_blank\" rel=\"noopener\"><strong>Whiz Consulting<\/strong><\/a>, we provide Australian businesses with skilled <a href=\"https:\/\/www.whizconsulting.net\/au\/services\/online-bookkeeping-services\/\" target=\"_blank\" rel=\"noopener\"><strong>bookkeeping services<\/strong><\/a> to reconcile accounts, review GST coding, identify payroll mismatches, clean up bookkeeping tool reports, and maintaining accuracy in books. If discrepancies keep appearing, your process needs stronger review, not quick corrections. Get expert support to maintain accurate, ATO-ready records.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to identify bookkeeping discrepancies and explore common causes, including errors, data entry mistakes, and reconciliation issues.<\/p>\n","protected":false},"author":4,"featured_media":2999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[70],"tags":[],"class_list":["post-2349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bookkeeping","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/posts\/2349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/comments?post=2349"}],"version-history":[{"count":4,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/posts\/2349\/revisions"}],"predecessor-version":[{"id":5831,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/posts\/2349\/revisions\/5831"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/media\/2999"}],"wp:attachment":[{"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/media?parent=2349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/categories?post=2349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whizconsulting.net\/au\/wp-json\/wp\/v2\/tags?post=2349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}