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