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Level 2

Opening Balance Equity Question

Hello,

 

I created the books for a company in QBO a few months ago. I now notice that a balance remains in the Opening Balance Equity account. The balance represents the balance on the company credit card at the time the books were moved to QBO. That balance has long been paid off and recorded in QBO by way of a transfer from bank account to credit card account. What is the proper way to clear the balance remaining in the Opening Balance Equity account?

 

Many thanks

 

Peter

Solved
Best answer April 09, 2020

Best Answers
Highlighted
Level 7

Opening Balance Equity Question

Hello @peter-halpenny ,

 

If there is a balance in your Opening Balance Equity account, then something was posted to it that shouldn't have been or something was missed when you switched the books over.  If you used the end of period Trial Balance, all entries to the OBE account should have brought the balance to $0.00.

 

I would look at your Trial Balance for the end of the last period before you switched to QBO, and go over it again, making sure you have OBE matching entries for everything on it.

 

Good luck!

View solution in original post

Level 7

Opening Balance Equity Question

Hi @peter-halpenny ,

 

I'm sure you know this, but I should have clarified that you only need to match your OBE entries to the Balance Sheet account balances at the end of the last period before migrating to QBO, not the P & L.  This can be done from the Trial Balance or the Balance Sheet.

View solution in original post

2 Comments
Highlighted
Level 7

Opening Balance Equity Question

Hello @peter-halpenny ,

 

If there is a balance in your Opening Balance Equity account, then something was posted to it that shouldn't have been or something was missed when you switched the books over.  If you used the end of period Trial Balance, all entries to the OBE account should have brought the balance to $0.00.

 

I would look at your Trial Balance for the end of the last period before you switched to QBO, and go over it again, making sure you have OBE matching entries for everything on it.

 

Good luck!

View solution in original post

Level 7

Opening Balance Equity Question

Hi @peter-halpenny ,

 

I'm sure you know this, but I should have clarified that you only need to match your OBE entries to the Balance Sheet account balances at the end of the last period before migrating to QBO, not the P & L.  This can be done from the Trial Balance or the Balance Sheet.

View solution in original post