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EliBee
Level 1

Opening balance all accounts

I have read through all documentation there is on opening balances to try make sense but some things are still not clear:

 

We have 2 bank accounts, one with o/b of zero on 1/10/2018 and the other one used since Mar18. We started using QBO only when the first account was opened, in Oct18 so the first transactions are from Oct18. How do I manage all previous expenses on the 2nd bank account, which were not yet in QBO? So far I also added an o/b 1/10/18 for the 2nd account.

 

In the 2nd account we have initial capital, directors loans and asset expenditure prior to Oct18 so I created an opening balance for 1/10/18 for the Bank Account and the Loans (I went and did it on the Chart of Accounts). I wanted to do the same with Shareholding capital and Fixed assets but also put Admin expenses as a lump sum ending/b of all previous expenses into a "miscellaneous expenses" account (this is historical data so not relevant). 

 

Would I use the retained earnings account perhaps and how would all of this (opening balance for Capital, Fixed Assets, Ret Eanings)? Thank you

1 REPLY 1
SPOT3
Level 3

Opening balance all accounts

From your question, I ascertained the following facts: it's a limited company and the accounting year starts on 1st October.

 

If this is a new company and only started receiving sales income in October 2018 (hence you picked 01/10/2018 to start the accounting year), then the recording on QBs would need to start from the company incorporation date (assuming this date is not earlier than 01/10/2017) to 30/09/2018 as the first period of accounts. In which case, your query is resolved because all transactions in the 2nd bank account since March 2018 must be recorded for this first period of accounts.

 

However if there were accounts were drawn up or finalised up to 30/09/2018 on another accounting software or system, then you need a set of closing balances as at 30/09/2018 to proceed.

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