Hi enaaang,
It's a pleasure to see you in Community. Welcome to the QuickBooks family! Making sure you enter an opening balance is essential in ensuring your bank and credit card accounts match your bank records, from the time you began with QuickBooks. I'd be glad to help!
When an opening balance has been accidentally removed, don't worry. QuickBooks has you covered. You can record the opening balance with a journal entry. However, you should only use this method if you haven't reconciled the account yet. If the account(s) have been reconciled, I recommend reaching out to your accountant, to ensure a positive impact on your books. If you don't have an accountant? We can help you find one.
Here's how to create the journal entry;
1. From the left menu, open +New and select Journal entry
2. Enter a date that comes before the oldest transaction in the account. This will be the opening balance date.
3. In the first row in the Account column, use the ▼drop-down menu to choose the account you want to enter the opening balance for
4. Enter a note in the Description field so you know what the journal entry is for.
5. On the second row under the Account column, select and choose Opening Balance Equity, from the ▼ dropdown menu
6. Use your bank statements to enter the opening balance. Enter the balance of your real-life account for the date you picked as the opening balance. You'll need to enter both a debit and a credit to keep things accurate. Enter the debits and credits based on the type of account you entered on the first line:
- Asset (savings and chequing) and expense accounts: Enter the opening balance in the Debit column in the first row. Then, enter the same amount in the Credit column in the second row.
- Liability, equity, and income accounts: Enter the opening balance in the Credit column in the first row. Then, enter the same amount in the Debit column in the second row.
- Accounts Payable: In the first row in the Name field, select the supplier you owe money to. Enter the opening balance as a credit to increase the balance. Or enter the opening balance as a debit to decrease the balance. Then, enter the same amount in the opposite column in the second row.
- Accounts Receivable: In the first row in the Name field, select the customers who owe you money. Enter the opening balance as a debit if you want to increase the balance. Or enter the opening balance as a credit if you want to decrease the balance. Then, enter the same amount in the opposite column in the second row.
7. When you're ready, hit Save and close.
Next, you'll need to mark the journal entry as reconciled. The ensures it doesn't show up on future reconciliations.
Follow these steps to reconcile the journal entry;
1. Go to your Settings ⚙ and select Chart of accounts
2. Locate the account and click on Account history from the Action column
3. Find the journal entry you just created, then click on it to expand the view.
4. Select the box in the checkmark column until you see an R. This reconciles the journal entry.
5. Hit Save.
This should balance your accounts and you can follow the usual steps to reconcile the account.
Feel free to reach out again, if any other questions come to mind. We are always happy to assist!
