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Community Contributor *

Setting up initial balance sheet



Following on from my previous query here is the next question. First the background.


I took over as treasurer for a club on the 1st April 2018 and started using QBO to run the accounts.  Started off with the bank accounts and our members account balances and have been running this OK for the this year.  I have now been given the last years accounts (01/04/17 - 31/03/18)  on a spreadsheet (basically the standard balance sheet and p&L reports we have to submit to companies house) and want to enter these in so that I can recreate the opening balance sheet as of the 1st April.


I have all the assets and bank details entered, but I don't know how to enter the profit and loss account.  It's a loss of £3850 over the year. I'm guessing I could do a journal to an income or expense account but whats the other leg I would need to do?  All I have are the totals (Turnover, Cost of Sales, Admin Costs etc and the Profit / Loss.


I haven't closed the books on 2017 yet.








QuickBooks Team

Re: Setting up initial balance sheet

Hi Chris,


Welcome to the QuickBooks community & thank you for your query!


You could create a journal entry as this would be the easiest way in your QuickBooks account you would need to speak to an accountant in regards to what are the best accounts to use as we are unable to advise on this because we are not trained accountants we can only advise on technical support issues with the software.


I have enclosed a link to our QuickBooks community page where you can also find step by step guides and advise on how to do things in your QuickBooks account:


Enclosed below is also a guide on how to show transactions in the p&L reports:


When you receive payment from a customer, that only affects Accounts Receivable and your bank account.
If you pay a bill, that only affects Accounts Payable and your bank account. These are all balance sheet accounts, which don't reflect on your Profit and Loss report.
In order to recognise revenue for received payments, you need an invoice created for that customer. This goes for your suppliers (or suppliers) too.  To recognise the expense from bill payments there must be a bill.
If you don’t use our invoice/receive payments entry system, but instead record deposits, those should show as long as the deposit is affecting an income account.
If you just record the cheques written or cash disbursements made, those will show as long as an expense account is listed on the transaction. (Note: If only balance sheet accounts are listed on these transactions, they will not show.)


Please do not hesitate to contact us if you require further information and we will gladly help you with your queries.


Kindest regards