cancel
Showing results for 
Search instead for 
Did you mean: 
BCS2020
Level 1

How to record a payment made prior to opening company bank account?

As a start up company, there are expenses which occur even before company bank account is open, how can we record these payments in QB? How does the reconcile reflect this?

1 Comment
Adrian_A
Moderator

How to record a payment made prior to opening company bank account?

We can create a Journal Entry to record the payment made, BCS2020.

 

Before doing so, I recommend reaching out to your accountant for the accuracy of the books.

 

Here's how to create a Journal Entry:

 

  1. From the + New button, select Journal entry.
  2. Select an expense account in the first column.
  3. Enter the payment amount on the DEBITS field.
  4. Select Opening Balance Equity on the second line.
  5. Enter the same amount in the CREDITS section.

 

Once done, the register will recognize the amount as an expense transaction. That being said, it will not affect your reconciliation.

 

I've added this article as a guide when reconciling the account: Reconciliation in QuickBooks Online.

 

There you have it, BCS2020. Let me know if you need help. Keep safe!