Hi - feeling really dumb, but I don't get how to clear out the opening balance equity.
I guess the only reason you would have an opening balance equity is if you migrate from another bookkeeping software and start in QBO while your bank accounts/balance sheet accounts already have balances - so I get that that start point creates an entry into the opening balance equity account, but what do you do to clear it out and get it out of your balance sheet?
Thank you for reaching out to the Community. I'll be here to help you rectify the opening balance equity account in QuickBooks Online. Let's open the register and delete the deposit affecting the opening balance.
Take note when removing transactions out of opening balance equity, you'll need to consult an accountant about the process to ensure your books are accurate.
Here are a few Community Articles that you may find helpful:
Let me know if you any further questions or concerns. I'm just a Reply away. Have a great rest of your week.
Hi - thank you but that's not what I am asking, I know how to delete a transaction -
I need the transaction as the opening balance in my bank accounts, but I believe I need to make an opposing entry into the opening balance equity account so the opening balances of all of my bank accounts aren't showing up as a line item on the balance sheet.
This is more of an accounting questions, not really a software question. Hoping someone can help! I have tried to research it myself and haven't found anything useful yet.
@AileneA I think I need to import a trial balance. When I go to "gear icon" "import data" , "trial balance" is not one of the options. Can you help with that? I was trying to follow steps in this article:
Let me ease your confusion, Imancini220.
The article you've followed is for QuickBooks Online - India version.
You're unable to import the trial balance in the US versions. These are the only data you can import:
Having said that, you'll want to enter the transactions manually. This way, it'll flow in the report.
If you have more questions, don't hesitate to reach out to us again. We're just one post away. Take care!
Hi @Kristine Mae Thank you for the response.
Are you saying that I will have to input years and years worth or previous bank data, back to when the account was open so I don’t have an opening balance entry that is above 0$ ? That doesn’t make sense to me, what do people do when migrate to quickbooks after years of using another software?
Thanks for getting back to this thread, @lmancini220.
Let me add clarifications to what my colleague has mentioned above.
Importing the Trial Balance report is unavailable in QuickBooks Online. This is why it's recommended to manually enter your data instead.
However, adding transactions to QuickBooks won't still zero out the balances in your Opening Balance Equity account. The balance of this account is the total sum of all of your opening balances that you've entered into your accounts.
If you wish to remove it from the Balance Sheet report, you have to delete all of the opening balances in your accounts. Here's how:
Please take note that deleting this transaction could unbalance your account the next time you try to reconcile. I'd recommend reaching out to your accountant for further advice before taking these actions.
You can also read through this article to learn more about opening balance equity account: Understanding the Opening Balance Equity Account.
Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. Take care and have a good one.