Right from day one, it’s mandatory for your accounts in QuickBooks to match the real-life bank and credit card accounts that you’re tracking. Whenever you create a new account in QuickBooks, you pick a day to start tracking transactions. Then, you enter the balance of your real-life bank account for whatever day you choose. This amount and start date set the account’s opening balance. Well, an opening balance is the starting point for the account that summarizes all past transactions in your up to the opening balance date. Further, to record opening balance in QuickBooks for different account types, you must proceed with the steps listed in the next section of this blog.
While creating a new account in QuickBooks Desktop, make sure to select an easy date to start your opening balance. If you just opened a new account at your bank, use the day you opened the account. If you’ve had the account for a while, start your opening balance on the same day as the beginning of your next bank statement. Whatever date you choose, use your bank statement to get the account’s balance for that day. Further, you can proceed with the below-given steps to record opening balance in QuickBooks for a bank, credit card, and other types of accounts.
Here, we have mentioned the detailed steps that you need to follow to record opening balance in QuickBooks depending on the type of account the opening balance is for:
A: Bank or credit card accounts
B: Asset, liability, and other types of accounts
C: Income and expense accounts
For Bank or credit card & Asset, liability, and other types of accounts
Before you create a new account on your QuickBooks Chart of Accounts, it’s important for one to know about what to enter for an opening balance. For instance, you can record opening balance in QuickBooks for a real-life bank account that you created recently, or for the one you’ve had for a while.
Note: If you have multiple accounts of the same type or at the same bank, make sure to give them unique names.
What you enter as the opening balance varies on how you want to handle your past transactions:
For Income and expense accounts
One doesn’t have to record opening balance in QuickBooks for income or expense accounts, as these accounts simply track your earnings and spending.
Once you record opening balance in QuickBooks, go to your account register and make sure it’s accurate. Also, ensure that there is no remaining balance in the Opening Balance Equity account.
However, if due to any reason the balance isn’t 0.00, then, note down the remaining balance. Once done, you have to run a Balance Sheet Report for last year.
Well, it’s great if they match as it signifies that everything is balanced. If they don’t, you must reach out to your accountant. They will help you get your accounts back in balance.
Hopefully, the above-listed steps would have helped you record opening balance in QuickBooks without much trouble. However, if you come across any issue while doing it and need an expert’s help, then we would suggest you to contact Asquare Cloud Hosting Helpline Number and reach out to our expert.
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