How to Add,Enter or Edit Opening Balance In QuickBooks

1. How to Add,Enter or Edit Opening Balance In QuickBooks WWW.WiZXPERT.COM

2. Introduction Opening balance is primarily the amount of money in a company’s account at the beginning of a new financial period or year.This is known as the first entry that is done when a company starts its processes or after a year-end.There are various methods to edit or enter the opening balance in QuickBooks Desktop.This article information the methods in entering or editing opening balance in QuickBooks Desktop. WWW.WiZXPERT.COM

3. Enter Opening Balance in QuickBooks Desktop Bank or credit card accounts Click on Chart of Accounts from the Company menu. In this window,right click and select ‘New’. Then,choose the account type- Bank or Credit Card. On the ‘Add New Account’ Screen: Fill all the required details. Click Enter Opening Balance Button.This button will only be available if you have not entered any ● ● ● ● ● ● transaction yet.As soon as you enter a transaction,the button will change to Change Opening Balance button.Now,enter the ending date and ending balance from your credit card statement or last bank statement. Then,click OK. ● Click Save & Close. ● WWW.WiZXPERT.COM

4. Enter Opening Balance Bank or credit card accounts Open QuickBooks and go to Company>Chart of Accounts Right click on the window and select New from the drop-down list In the account type, select Bank or Credit Card Under the Add New Account screen: ○ Fill out all the required fields. ○ Click on the Enter Opening Balance The Enter Opening Balance will be available if you haven’t entered any transaction till now and when you enter the transactions it’ll change to the Change Opening Balance option. ○ Provide the Ending Balance & Ending Date from the last bank or credit card statement that you’ve received before your QuickBooks Start Date ○ Click on OK Click on Save & Close. ● ● ● ● ● WWW.WiZXPERT.COM

5. Other balance sheet accounts Through the Chart of Accounts Go to the Company menu and click on Chart of Accounts. Right click in the Chart of Accounts window and select Select the appropriate Account Type. In the Add New Account screen: ○ Provide information in the appropriate fields. ○ Click on the Enter Opening Balance ○ Enter the opening balance amount and the date. Enter the date before your QuickBooks start date. ○ Click on Ok. Click on Save & Close. ● ● ● ● ● WWW.WiZXPERT.COM

6. Using a journal entry Go to the Company menu and then select Make General Journal Entries. Enter the date and a number for the journal entry. From the Account column,select or create the account to be entered.You may wish to enter the accounts in the order in which they appear on the balance sheet or trial balance. Enter the account balance as a positive amount in the required section. The balance depends on the type of account. Repeat steps 3 and 4 for each account. Once you enter all the balances, check that the Debit and Credit sections are equal.Utilize the Opening Balance Equity account as the offset for any differentiation between both the sections. Click on Save & Close. Make substitute journal entries or other transactions for entering the balances for accounts receivable, accounts payable,sales tax payable or any other account not involved in the first journal entry. Make a final journal entry to distribute all the remaining balances under the opening balance equity account among other equity accounts and retained earnings as expropriate. ● ● ● ● ● ● ● ● ● WWW.WiZXPERT.COM

7. Through the Register Go to the Company menu and click on Chart of Accounts. Click on the account for which you wish to provide an opening balance. Now, click on Edit and select Use Register Complete the fields for the new transaction as follows: ○ Date: Opening balance date. ○ Number/Type: Leave this field blank. ○ Account: Select Opening Bal Equity. ○ Payment or Deposit: Provide the amount of the opening balance under the Deposit field if it is positive and Payment field if it is negative. Select Record. ● ● ● ● ● WWW.WiZXPERT.COM

8. For transactions that occurred after your start date: If the customer or vendor transactions shows up on or AFTER the start date,you can use standard QuickBooks forms to enter the correct transactions such as: Invoices and sales receipts (with sales tax, if appropriate) Customer returns Customer payments Deposits Sales tax payments Vendor bills Vendor credits Bill payments ● ● ● ● ● ● ● ● WWW.WiZXPERT.COM

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