cancel
Showing results for 
Search instead for 
Did you mean: 
lmancini220
Level 3

Opening Balance Equity

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!

6 Comments
AileneA
QuickBooks Team

Opening Balance Equity

Hello, lmancini220. 

 

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.  

 

Here's how: 

 

  1. Click the Accounting, and select Chart of Accounts.
  2. Select the correct account, click View register
  3. Find and select the opening balance entry. Then locate the transaction that affect the opening balance. 
  4. Press Delete and Save

 

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.

lmancini220
Level 3

Opening Balance Equity

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. 

 

lmancini220
Level 3

Opening Balance Equity

@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:

https://quickbooks.intuit.com/in/resources/getting-started/how-to-import-trial-balance-in-quickbooks...

 

Thank you!

Kristine Mae
QuickBooks Team

Opening Balance Equity

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:

  • Bank data
  • Customers
  • Vendors
  • Chart of Accounts
  • Products and Services
  • Invoices

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!

lmancini220
Level 3

Opening Balance Equity

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? 

 

 

ReymondO
QuickBooks Team

Opening Balance Equity

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:

 

  1. Go to the Accounting menu and select Chart of Accounts
  2. Look for the Opening Balance Equity account, then select View register.
  3. Find the Opening Balance transaction and click it to expand the view.
  4. Select Delete, then click Yes to confirm.

 

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.

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us