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S
Setsun
May 9, 2021
Solved

fix beginning balance issues in QBO

  • May 9, 2021
  • 19 replies
  • 152 views

Hi all,

 

I have a new client that recently converted from Desktop.  The QB team did the conversion.  My initial bank reconciliation shows an opening balance of a significantly large negative balance.  I reviewed the register and didn't find a date with that amount.  Also, there was no opening balance equity entry.  

 

How can I adjust the beginning balance and complete an initial reconciliation?

Best answer by Emma_P

How do I fix a wrong beginning balance and complete my first reconciliation in QuickBooks Online after a Desktop conversion?

 

Don't force the difference as an adjustment to make it balance; a wrong beginning balance almost always has a findable cause, and after a Desktop conversion it's usually either a missing opening-balance entry or a converted opening entry that landed with the wrong sign or date. Start by finding the actual opening entry, and if there isn't one, you'll create it as a journal entry against Opening Balance Equity and reconcile that entry so it stops affecting future reconciliations.

 

Step 1: Find or verify the opening balance entry

 
  1. Go to All apps, then Accounting, then Chart of accounts.
  2. Find the bank account and select View register.
  3. Scroll to the earliest entries and look for an opening balance (often posted to Opening Balance Equity). 
  4. Compare it to your real-world balance on that date and to your last QuickBooks Desktop reconciliation.
 

If a converted entry has the wrong amount or date, correcting that entry is often all that's needed. Select it to expand the view, edit the amount in the Deposit column, then Save.

 

Reference: Fix issues the first time you reconcile an account in QuickBooks Online.

 

Step 2: If there's no opening balance entry, create one

 
  1. Select + New, then Journal entry.
  2. Date it before your oldest transaction in the account.
  3. On the first line, choose the bank account and enter your real-world balance for that date (as a debit or credit depending on the account).
  4. On the second line, choose Opening Balance Equity for the offsetting amount so the entry balances.
  5. Save, then in the account register mark that journal entry R so it won't show up in future reconciliations.
 

Opening Balance Equity is a temporary holding account; your accountant later clears it into the right equity account, which is why you don't leave a permanent balance sitting there.

 

Reference: What to do if you didn't enter an opening balance in QuickBooks Online.

 

If your beginning balance broke after deleting a reconciled transaction

 

Recreate the original transaction with the same date, amount, and accounts (if it was a transfer, recreate it as a transfer rather than a plain deposit), then mark it R in the register. Use a journal entry only if it reproduces the same accounts and amount, and avoid adding a second offsetting entry, which just creates a new discrepancy. Then check the Reconciliation Discrepancy Report; the Total Discrepancy Difference should read $0.00 before you resume reconciling.

 

Reference: Fix issues with your beginning balance for accounts you've reconciled before.

 

Before you complete the first reconciliation

 

Make sure the opening balance matches your bank statement for that date, then reconcile forward. Reference: Reconcile an account in QuickBooks Online. Because this involves prior-period equity and years of converted history, it's worth confirming the entries with your accountant. This is general product guidance, not accounting advice.


Official sources drawn from:

 

19 replies

S
SarahannC
Level 9
May 9, 2021

Hello there, Setsun.

 

It's good to know that you've already checked and reviewed the register. I appreciate you for doing that.

 

Since there's no opening balance entry, you'll have to use your bank statements to make sure the opening balance is correct. Then, take note of the date and amount of the oldest transaction in the account. Once done, you'll need to create a journal entry for this. 

 

  1. Go to the +New button.
  2. Select Journal entry under Other.
  3. Enter a date that comes before the oldest transaction in the account. This will be the opening balance date.
  4. On the first line from the Account drop-down menu, select the account you want to enter the opening balance for.
  5. We recommend adding a note in the Description field so you know what the journal entry is for.
  6. On the second line from the Account drop-down menu, select Opening Balance Equity.
  7. Use your bank statements to enter the opening balance. Note: Enter the balance of your real-life account for the date you picked as the opening balance.
  8. Enter the debits and credits based on the type of account you entered on the first line.

 

Afterward, go back to the Chart of Accounts tab to reconcile the journal entry. This prevents it from showing up on your future reconciliation. Here's how:

 

  1. Go to Accounting on the left panel.
  2. Within the Chart of Accounts, find the account and select View register from the Action column.
  3. Search for the journal entry you just created.
  4. Select the box in the checkmark column until you see an R. This reconciles the journal entry.

 

Also,  I'd recommend reaching out to your accountant for further advice on fixing the beginning balance issue in QBO, especially when creating a journal entry.
 

For additional details and tips, feel free to check out these resources:

 

 

If you still need help with the process, please let me know by commenting below. Always take care and have a great day!

S
SetsunAuthor
May 9, 2021

Thank you for the reply.  I'm not sure I understand completely.  There's 12 years of data.  You want me to post an entry in 2008 with the offset to equity.  How does this balance get cleared?  What about the equity account?  I not be grasping your logic completely, please help me understand.

 

BTW, when I try to reconcile, there are no uncleared transactions for the prior periods.

K
Kim_1234
February 13, 2023

After I reconciled my initial transaction, I realized I entered the information incorrectly.  I, then deleted the reconciled transaction.  I am now having trouble with the beginning balance.  It seems I need to recreate the initial transaction.  Do I enter the information as before, incorrectly?  It seems the initial transaction is a transfer type transaction instead of a deposit transaction.  Can I just do a journal entry instead?

Emma_P
Emma_PCommunity ManagerAnswer
Community Manager
August 6, 2026

How do I fix a wrong beginning balance and complete my first reconciliation in QuickBooks Online after a Desktop conversion?

 

Don't force the difference as an adjustment to make it balance; a wrong beginning balance almost always has a findable cause, and after a Desktop conversion it's usually either a missing opening-balance entry or a converted opening entry that landed with the wrong sign or date. Start by finding the actual opening entry, and if there isn't one, you'll create it as a journal entry against Opening Balance Equity and reconcile that entry so it stops affecting future reconciliations.

 

Step 1: Find or verify the opening balance entry

 
  1. Go to All apps, then Accounting, then Chart of accounts.
  2. Find the bank account and select View register.
  3. Scroll to the earliest entries and look for an opening balance (often posted to Opening Balance Equity). 
  4. Compare it to your real-world balance on that date and to your last QuickBooks Desktop reconciliation.
 

If a converted entry has the wrong amount or date, correcting that entry is often all that's needed. Select it to expand the view, edit the amount in the Deposit column, then Save.

 

Reference: Fix issues the first time you reconcile an account in QuickBooks Online.

 

Step 2: If there's no opening balance entry, create one

 
  1. Select + New, then Journal entry.
  2. Date it before your oldest transaction in the account.
  3. On the first line, choose the bank account and enter your real-world balance for that date (as a debit or credit depending on the account).
  4. On the second line, choose Opening Balance Equity for the offsetting amount so the entry balances.
  5. Save, then in the account register mark that journal entry R so it won't show up in future reconciliations.
 

Opening Balance Equity is a temporary holding account; your accountant later clears it into the right equity account, which is why you don't leave a permanent balance sitting there.

 

Reference: What to do if you didn't enter an opening balance in QuickBooks Online.

 

If your beginning balance broke after deleting a reconciled transaction

 

Recreate the original transaction with the same date, amount, and accounts (if it was a transfer, recreate it as a transfer rather than a plain deposit), then mark it R in the register. Use a journal entry only if it reproduces the same accounts and amount, and avoid adding a second offsetting entry, which just creates a new discrepancy. Then check the Reconciliation Discrepancy Report; the Total Discrepancy Difference should read $0.00 before you resume reconciling.

 

Reference: Fix issues with your beginning balance for accounts you've reconciled before.

 

Before you complete the first reconciliation

 

Make sure the opening balance matches your bank statement for that date, then reconcile forward. Reference: Reconcile an account in QuickBooks Online. Because this involves prior-period equity and years of converted history, it's worth confirming the entries with your accountant. This is general product guidance, not accounting advice.


Official sources drawn from:

 
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