We enter an opening balance in QuickBooks to start tracking each, and every transaction of the company, which makes it easy to match bank records from the starting. It needs a proper setup to summarize all of the past transactions. This article will be a great source for
all new QuickBooks users, who want to enter the opening balance, and also for the used users, who want to edit the opening balance. Here we will discuss the way to add, enter, or edit opening balance in QuickBooks. For the instant and direct procedure, you can contact the QuickBooks experts through this number [QuickBooks]. The amount of money in a company’s account at the start of a new financial period or year is known as the opening balance. This is the first entry made when a company begins its processes or at the end of the year. Small business owners and freelancers can use QuickBooks accounting software to keep track of accounts payroll and expenses. Before starting your QuickBooks account you need to create your opening balance. Important:
Things to Remember:
How to Enter the Opening Balance in QuickBooks DesktopEnter opening balance in QuickBooks Desktop, by using different ways; Using the Bank or Credit Card Accounts
If you got outstanding transactions on credit cards or in the bank, you have to account for them in order for your accurate reconciliation in the future. After entering your opening balances, follow the given steps:
QuickBooks Opening Balance using Journal Entry
Other balance sheet accountsYou need to be attentive while entering an opening balance for a Fixed Asset, Equity, Long-term Liability, Other Asset, Other Current Asset, and Other Current Liability accounts because otherwise there is a possibility of creating a double accounting entry. Also, Accounts Receivable and Accounts Payable opening balances are treated differently in QuickBooks. See the Customers and Vendors section in this article for information on how to set it up. Using the Chart of Accounts
Income and Expense accountsThere is no option to enter an opening balance for income and expense accounts as the balances for these accounts come from transactions you enter such as checks, bills or invoices. Using the RegisterIf transactions are already in the account, you have to go to the account register to enter the opening balance.
Customers and vendors (A/R and A/P)For outstanding balance before your start date: If there is any remaining balance of customer or vendor before the start date, use any of the following options to record the balance. Option 1: In the Opening balance field Enter the outstanding balance with the As of date equal to your start date. The opening balance entries track on the Uncategorized Expense (vendors) and Uncategorized Income (customers). If you want to set up jobs for customers, enter opening balances instead of individual jobs. The customer name will reflect the total balance for all its jobs. The opening balance field will be available only when you add new customers or vendors. Option 2: Create an option Opening Balance and use the option invoices and bills to create opening balances for customers and vendors. Using this option helps you determine which account entries you want to track. Option 3: Enter an individual bill or unpaid invoice instead of a total balance for each customer and vendor. The transactions will display in an open balance for vendors and customers, which are unpaid. And those balances will collectively display in A/R and A/P opening balances. If you need to keep track of individual sales or bills that make up your customer and vendor opening balances then This option is particularly helpful For Transactions that Occurred after your Start Date You can understand the forms to enter the suitable individual transaction If the transactions of the customer or vendor occurred on or AFTER your start date.
Check the QuickBooks Opening Balance EntryIn the above, you got the idea that how to enter the opening balance in QuickBooks. Now you need to complete the process by checking the balance equity. First, recheck the account register, and make sure that everything is right. And make sure that there is no remaining balance in the opening balance equity account. To check that, you can follow the below procedure:
And if the account balance is not 0.00 then put the remaining balance, and run last year’s balance sheet report. You can follow the given steps to run the balance report for the last year.
How to Enter an Opening Balance for an account in QuickBooks OnlineYou can manually enter the opening balances for accounts that are not connected to online banking.
How to Edit Opening BalanceHere we have given the procedure to edit the opening balance, but before going to the procedure you need to know that the changing of the opening balance is not the same as the editing process of the opening balance. Bank, credit card, and other balance sheet accounts
Income or Expense Accounts
How to Delete Opening Balance EquityDeleting the opening balance equity is very simple just follow the given steps-
In this way, you can delete your opening balance equity. So, this was the whole procedure, to add, enter, and edit opening balance in QuickBooks. Hopefully, this will be an informative source for you. Still, if you are seeking help then, get the help of a certified QuickBooks expert for the reliable procedure. What is opening balance in accounts receivable?It is the first entry in the accounts, either when a company is first starting up its accounts or after a year-end. In an operating firm, the ending balance at the end of one month or year becomes the opening balance for the beginning of the next month or accounting year.
What is the journal entry for opening balance in QuickBooks?Enter the journal entry debiting the bank or credit card, and crediting opening balance equity. Now, choose the bank or credit card account from the Account column and enter the amount calculated in step 2 in the Debit column. In the next line, click on Account and choose 'Opening Balance Equity' from the drop-down.
What is the step to enter a opening balance?To enter your opening balances, you need a list of your outstanding customer and vendor invoices and credit notes, your closing trial balance from your previous accounting period, and your bank statements. You also need a list of the unrepresented bank items from your previous accounting system.
What is one way opening balances can be entered into a converted QBO Company file?By entering an amount directly in the chart of accounts for the specific account, QBO automatically makes an entry to “opening balance equity”.
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