A Quick Guide to learn to enter opening balances for accounts in QuickBooks
When creating a new account in QuickBooks, the user is suggested to pick a day to start tracking all of the transactions. The user should enter the balance of the real-life bank account for the day that has been selected. This will let QuickBooks match the bank records form the start. The starting point here is the account’s opening balance. This summarizes all the past transactions that came before it. To learn the process to enter opening balance in QuickBooks, make sure that you read this article carefully till the end. Or you can also ask our QuickBooks support team professionals using our support number 1-800-615-2347, and they will come up with the most effective steps for you.
Steps to enter opening balance for accounts in QuickBooks
The below steps can be of some help in entering opening balance for accounts in QuickBooks. Let us check the steps out one by one:
Step 1: Enter an opening balance
The steps for the type of account the opening balance is for are listed below:
Bank or credit card accounts
Before creating a new account on QuickBooks chart of accounts, ensure to know what to enter for opening balance. The user can enter an opening balance for a real-life bank account you just created, or one that is already present.
- At first, the user needs to get the bank statements or sign in to the bank’s website
- And then, in QuickBooks move to the company menu and then choose chart of accounts
- Right click anywhere on the chart of accounts and choose new
- The next step is to select bank or credit card for the account type and also choose continue tab
- The user needs to give account a name. in case the user is having multiple accounts of the same type or at the same bank and give them unique names so that they are easy to tell apart
- After that fill out the rest of the data fields
- And also, choose enter opening balance. In case the user requires to edit the opening balance, the button will be change opening balance
- Once done with that, the user should choose save and close to record the opening balance
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Asset, liability, ad other types of accounts
The user can enter an opening balance for a real life bank account that is created above. The user should also be careful entering the opening balances for accounts on your balance sheet. This includes fixed asset, equity, long-term liability, other assets, other current assets, and other current liability accounts. In case the user is unsure or have any queries, then it is suggested to reach out to the accountant. In case the user isn’t having an accountant, he/she can look for one.
- The user can get the bank statements or sign in to the bank’s website initially
- After that, move to the company menu in QuickBooks and then choose chart of accounts
- The next step is to right click on chart of accounts and choose new
- Choose fixed asset, loan, or equity. For other types of accounts, choose the other account types drop down and one of the types
- Also, choose continue tab
- Assign the account a name
- Enter rest of the details
- And also select enter opening balance
- After that choose save and close tab to record the opening balance
Income and expense accounts
The user need not to enter opening balances for income or expense accounts. These accounts simply track the earnings and spending.
Step 2: Check the opening balance entry
After entering the opening balance, move to the account register and ensure it is appropriate.
- Here, the user needs to move to the lists menu and choose chart of accounts
- Look for and open the opening balance equity account
- Also, check the account balance
In case the balance isn’t 0.00, then need not to worry. The user simply needs to write down the remaining balance. Then run a balance sheet report for last year.
- The user needs to move to the reports and hover over company and financial
- And choose balance sheet standard
- The next step is to select last fiscal year form the dates dropdown
- Check the retained earnings balance
- Compare last year’s retained earnings balance with the remaining balance in the opening balance equity account
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Entering opening balances for accounts in QuickBooks can be a little easy, once the above stated steps are performed properly. However, if there is any query or if for some reason the user isn’t able to perform the required steps, then in that case give us a call at 1-800-615-2347, and we will be there to come up with the best possible assistance immediately.
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