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Experienced Member

Opening Balance Equity

I'm trying to prepare my end of year reports and I'm $6.81 off. I've traced the issue to my opening balance equity. It is lower by $6.81 at the end of the year than it was on 1/1/18. I don't know why this has happened and the result is my year end income statement is off by this amount. It matters when I'm trying to file my annual report with my state. Does anyone know why this would happen? And how do I fix it?

1 Comment
Established Community Backer ***

Re: Opening Balance Equity

from the chart of accounts, run a report on OBE, click that transaction and see what made it.

OBE, should be cleared to equity after all opening balances are entered, at that point it is zero and should stay that way.

 

So for OBE to change, you had to make an entry that posts to OBE, either a journal entry (which should be avoided when possible), an adjustment to inventory where you used it as the adjusting account, or you created some account and entered a starting balance