Let’s Enter And Manage Opening Balances In QuickBooks

Enter And Manage Opening Balances In QuickBooks

When an organization begins a new financial year or period, the beginning balance in QuickBooks displays the amount of money in an account. Setting an exact opening balance is essential for keeping accurate financial records and guaranteeing that all ensuing transactions are appropriately accounted for. For QuickBooks to function correctly, you need multiple steps to enter and manage opening balances in QuickBooks Desktop.

The opening balance must be entered during the setup procedure to open a new account. You can modify the opening balance of an established account by gaining access to the account register and inputting the correct initial amount. It is imperative that this balance appropriately represents all previous transactions. To help you keep accurate financial records and optimize your accounting procedures, this article offers a thorough walkthrough on entering or modifying the opening balance in QuickBooks Desktop.

Are you new to QuickBooks and finding it difficult to enter the opening balance? Don’t worry; our team of QuickBooks experts is available to help you. Dial +1.833.802.0002, get in touch with them and let them handle this task for you.

Entering the Opening Balance in QuickBooks Desktop

Incorrect opening balances can lead to reconciliation discrepancies in QuickBooks Desktop, so ensure that you enter the balance carefully and review the previous reconciliation reports to avoid such issues.

Step 1: Enter An Opening Balance
Depending on what kind of account the opening balance relates to, retrieve your bank statements or visit your bank’s website.

1. Select Chart of Accounts from the Company menu in QuickBooks Desktop.
2. Then, right-click anywhere in the Chart of Accounts and select New.
3. Select Bank or Credit Card as the account type, then click Continue.
4. Name your account. If you have multiple accounts of the same type or with the same bank, use unique names for easy identification.
5. Fill in the remaining data fields.
6. Click Enter Opening Balance.
7. If you need to edit the opening balance later, the button will be labeled Change Opening Balance.
8. After finishing, click Save & Close to record the opening balance.

Step 2: Check The Opening Balance Entry
After entering the opening balance, go to your account register to ensure its accuracy. The Opening Balance Equity account should not have any remaining balance.

1. In the list menu, click on Chart of Accounts.
2. Locate and open the Opening Balance Equity account. There should be nothing in the account.
3. If the balance is not zero, note what is left and run the prior years’ balance sheet report.
4. Go to Reports and head to Company & Financial.
5. Select Balance Sheet Standard.
6. From the Dates dropdown, choose Last Fiscal Year.
7. Verify the balance of Retained Earnings under the Equity column.
8. Compare the remaining balance of the opening balance equity accounts to the previous year’s retained earnings balance.

We hope the above article helps you enter and manage opening balances in QuickBooks. If you still have doubts or additional questions, contact our QuickBooks Helpline at +1.833.802.0002, to speak with one of our experts.

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