Question

How to change opening balance?

Forum|Forum|5 years ago
December 12, 2020
23 replies
182 views

In order to reconcile the next month i need to fix opening balance.

QuickBooks Online

Level 10

I'm here to help correct the opening balance so you can reconcile the next month's statement, mgbdc.

Each time you start reconciling an account, you review the beginning balance in QuickBooks. It's the amount in the account at the beginning of the time period you're reviewing.

The beginning balance amount should match what's on your bank statement for the same start day. That being said, you can fix the opening balance by entering the balance of your real-life bank account.

You need to set the opening balance at the beginning of a bank statement. Then follow these steps to review it:

Select the Accounting menu, then select Chart of Accounts.
Find the account on the list.
Select View register.
Search for the opening balance entry. It should have "Opening Balance Equity" in the Account column.
Take note of the date and balance.
Next, you need to compare the opening balance with your real-life account.
Sign in to your bank's website, or find your bank statement.
Check the account's balance for the same day as the opening balance in QuickBooks.
Compare the two balances.

If the opening balance in QuickBooks doesn't match your bank records, here how to correct it:

In QuickBooks, select the opening balance entry to expand the view.
In the Deposit column, edit the balance so it matches your bank records.

If they match, you can proceed to Step 3 in this article: Fix issues the first time you reconcile an account in QuickBooks Online.

Once you fix the opening balance, you can start reconciling the next month's bank statement.

Let me know if you have a follow-up question by commenting below. I'll be around to help reconcile your bank accounts in QuickBooks.

S

snowflower

Thank you so much for the info! But what do I do when the account has years worth of records in the register?

I found the month and year with the issue but see no opening balance equity. Is there a new opening balance each year? I can't go back to 2014 etc. when the account was created, the issue is more recent.

C

Candice14

Level 8

Good morning, @snowflower.

Thanks for joining in on this thread. I hope your day is going well so far.

Opening balance equity is an offset entry used when entering account balance into the software. There's not a new opening balance each year. Let's ensure that you don't have an opening balance in your account already before moving forward. Here's how:

Go to the Accounting tab on the left-hand menu bar.
Choose the Chart of Accounts portion of the page.
Locate the account and hit View register in the "Action" column.
Search for the entry. Opening Balance Equity will be in the Payee/Account column and Opening Balance in the memo column.

If there isn't one, follow the steps below. Take note of the date and amount of the oldest transaction in the account.

Press the +New button.
Under the "Other" column, pick Journal entry.
Enter all the required information. Here's a link about what details need to be included: What to do if you didn't enter an opening balance.
Tap Save.

Afterward, manually reconcile this transaction. Continue to click the box in the picture below until it shows an R. Hit Save when done.

However, if you're seeing the problem in a month of transactions that are already reconciled, you'll need to get your accountant to undo the reconcile. After that, you can correct any errors that are there.

In addition, once you get back on track, you can start reconciling again.

These steps should do the trick. If you have any trouble along the way, just let me know. I'm only a post away if you need me. Have a great day!

K

Kari70

I am just setting up Quickbooks for the first time. I made an error entering a couple of account balances

I went to settings and chart of accounts but the option to View Register is not available. There is an edit option but it doesnt allow me to change the balance only the descriptions.

J

JamaicaA

QuickBooks Team

Thank you for joining the thread, @Kari70. I'll be your guide on how to access the View Register on your Chart of Accounts.

This isn't the kind of experience that I'd like you to have while using QuickBooks Online. Don't worry, I'm here to add some insights about the differences between the View Register and Run Reports functions.

One of the possible reasons why you're not able to access the View Register is that you're not the Company Admin. In this case, you'll need to contact the Master Admin so they can add you as a new user.

For more information, you can click this link to learn more about user types and permissions.

Only balance sheet accounts with running balances, such as banks, assets, liabilities, and equities, are shown in the View Register. While you can see the Run Report for income and expense accounts. This option allows you to focus on a specific account.

After that, you'll need to locate the transactions. You can either edit the amount and date or delete them. This will help you configure how to sort and filter transactions in a register.

Once done, you can proceed to correct the beginning balance. It's the amount in the account at the beginning of the period. That being said, you can fix the opening balance by entering the balance of your real-life bank account.

Here are some informative articles that can help you understand more about the COA and Account Register:

Moreover, you'll want to reconcile to see why discrepancies are appearing between the two balances. This is a great way to ensure the accuracy and validity of financial information.

Please update us if you have additional concerns about View register. The Community is always here to provide further help. Have a great day.

K

Kurt_M

QuickBooks Team

Thanks for joining us here in the thread, @CPR Kim.

You only need to follow step 1 to 9 to successfully create the journal entry.

Our Community Help Articles page contains resources, video tutorials, and tips to manage your company files. If you need more information, feel free to visit the site.

Additionally, here are some articles to help you in the future:

The Community is open 24/7 if you need help with your QuickBooks Online (QBO) concerns. Keep safe and have a good one!

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