QuickBooks Set Up Beginning Balance represents the number of funds in a company’s account during the starting of the financial year. It is referred to as the initial entry when companies begin their process. MyOnepro will cover the steps to enter the opening balance in QuickBooks Desktop.
QuickBooks Balance Sheet Out Of Balance most common issue user will face if they not setup correctly Beginning Balances in QB .
Setting Up Opening Balance QuickBooks
The first step is to write opening balances for different accounts including a credit card, bank, etc. Select a day to begin tracking your entire transactions and write the account balance for the selected day. This beginning point is the account’s opening balance which contains the details of past transactions. Following is the list of steps:
Step 1: Write an opening balance:
Below-mentioned is the steps for the type of account associated with opening balance:
- Get your bank statements or log in to your bank’s website
- Locate the company menu and then click on Chart of Accounts
- Hit on New
- Select the account type named bank or credit card then choose continue
- Name the account. If you have identified multiple accounts then give them individual names
- Enter remaining data fields
- Choose Enter Opening Balance. Afterward, if you required selecting or editing your opening balance, the button will be modifying Opening Balance. However, the balance is based on how to manage past transactions.
If you don’t need to write past transactions that enter before the beginning balance date in QuickBooks: Write the ending date and balance from the latest bank statement. Afterward, choose OK.
- Now you will begin tracking the new transactions
- If you wish to write past transactions in more depth then select an older date to track the transactions in QuickBooks. Now enter the information in the Data field and Ending balance
- Choose OK
- When you have finished all this hit on save & close to process record.
Step 2: Verify the opening balance entry:
Whenever you write the opening balance then the next step to register your account ensures that there is no remaining due in the Equity account.
Follow the steps:
- Locate the lists menu and then choose Chart of Accounts
- In the Equity account, discover the opening balance
- Now you have to verify the account balance it must be zero.
Note the remaining balance and afterward execute a balance sheet report of the previous year. To do this follows the steps:
- Navigate the Reports and click on Company & Financial
- Choose Balance Sheet Standard
- Search for dropdown named Dated and choose Last Fiscal Year
- Locate the Equity section and verify the Retained Earning balance
- Now do a comparison analysis between retained earnings balance of the last years with the equity account remaining balance
- Go ahead if they match otherwise call your accountants to know the details.
Also this guide also helps you to avoid any Quickbooks Reconciliation Issue in future .
How To Edit /Modify Opening Balance QB
What are the steps to edit an opening balance?
Here are the instructions:
- Select the chart of accounts positioned in the lists menu
- Choose the account that you wish to edit
- Discover the opening balance transaction listed in the account register
- You can edit both date and amount
- Hit on records to save all applied modifications.
Get Help For QB Beginning Balances Issues & Problem
It is expected that you have learned from the above about how to set up beginning balances in QuickBooks. Meanwhile, if you want to know the solution of any other QuickBooks error or any functional issue doesn’t hesitate to reach the QuickBooks Technical Support Number of MyOnePro. The expert team is available 24*7 for the clients to provide the best assistance and information.