I tried to add an opening balance to my checking account by going into the Chart of Accounts and New. I selected "Bank" and proceeded to add a beginning bal. When I was done I found it listed as a separate account in my chart of Accounts and not as a Beg. Bal in my checking. I made the account inactive and thought it removed it. I then went into my bank account and made a deposit dated the last day of the month previous to my first statement. Now when I look at my Balance Sheet it shows the correct amount for my bank account which includes the opening bal. but it also shows an "Opening Balance" account in the same amount. Can I remove that Opening Balance account? Thanks
Every entry you make in any accounting system goes to two accounts, one debit and one credit. Most commonly, an opening balance is a debit to Cash/Bank account and credit to Equity account.
Debits and credits must match, so you cannot delete one side of an accounting entry.
This is a new account I created in my Chart of Accounts. I can confirm it since I named it slightly differently than the deposit I made directly into my bank account for my "Beginning Bal". I tried to delete it, but the only option was to make it inactive so I no longer see it in my Chart of Accounts, but it is showing in my "Balance Sheet" as a separate bank account. I was able to get the Beg. Bal. into my checking account so it balances out, I just need to remove that additional account I created in my Chart of Accounts which is named, "Beginning Balance as of Jan. 1st". Thanks for your help.
Thanks for getting back to this thread, Emily17.
You can only delete an account if there are no transactions associated in it.
In connection with this, you'll have open the account which you named as Beginning Balance as of Jan 1st and remove its associated transactions. Once done, you can go back to the Chart of Accounts and right-click the account that you want to remove. Then, click Delete Account.
Please let me know if you have further questions. I'd be right here anytime.