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Level 1

enter beginning balance for a new checking account

Hi all, 

I started a new company and opened a new checking account by going to chart of accounts, selecting new and creating a new banking account.   i dont know where to enter my beginning balance so that i can start making entries.   any ideas??

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Best answer 03-06-2019

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Level 7

enter beginning balance for a new checking account

Ah, so it is not a new bank account at the bank.  You just started a new company on QB and setup a new Cash account in the COA.  (QB calls Cash account "Bank" which I find very confusing since that is not what you learn in accounting classes and I have never seen on any other accounting system). Yes, the cash you have on your books must reconcile to the cash in bank and on bank statements. Since every other account describes WHAT is in the account, not sure why they decided the Cash account should be WHERE. I always change account names to:  1000 Cash - BofA Checking, 1010 BofA Savings, etc.  and definitely suggest having one COA account for each account at the bank.  So assuming the money in this bank account is an investment in the company, then agree the entry should be a debit to the cash account and credit to equity.     

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Level 7

enter beginning balance for a new checking account

If you started a new bank account, where did the beginning balance come from? 

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Level 1

enter beginning balance for a new checking account

Hey, 

 

I started a new company and need to add the checking account information.   The actual checking account at the bank has been in existence longer than the company I started so it has a beginning balance.    

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Moderator

enter beginning balance for a new checking account

Hello Kevin,

 

There are two ways to add the beginning balance to the existing account in your Chart of Accounts. You can directly add it through your bank register or create a journal entry.

 

Add beginning balance through the bank register

  1. Click Lists at the top menu and select Chart of Accounts.
  2. Double-click the bank account to open the register.
  3. Enter the date of the beginning balance.
  4. In the ACCOUNT column, select Opening Bal Equity. You can leave the Payee field blank.
  5. In the DEPOSIT column, enter the beginning balance.
  6. Click the Record button at the bottom.

Create a journal entry to add a beginning balance

  1. Click Company at the top menu and select Make General Journal Entries.
  2. Enter the DATE and ENTRY NO..
  3. Debit the bank account.
  4. Credit the Opening Bal Equity account.
  5. Click Save & Close.

I'd also recommend reaching out to your accountant to verify which method suits you and your company.

 

I'll be right here if you need more help in adding an opening balance.

Highlighted
Level 7

enter beginning balance for a new checking account

Ah, so it is not a new bank account at the bank.  You just started a new company on QB and setup a new Cash account in the COA.  (QB calls Cash account "Bank" which I find very confusing since that is not what you learn in accounting classes and I have never seen on any other accounting system). Yes, the cash you have on your books must reconcile to the cash in bank and on bank statements. Since every other account describes WHAT is in the account, not sure why they decided the Cash account should be WHERE. I always change account names to:  1000 Cash - BofA Checking, 1010 BofA Savings, etc.  and definitely suggest having one COA account for each account at the bank.

 

So assuming the money in this bank account is an investment in the company, then agree the entry should be a debit to the cash account and credit to equity.     

Highlighted
Level 7

enter beginning balance for a new checking account

Ah, so it is not a new bank account at the bank.  You just started a new company on QB and setup a new Cash account in the COA.  (QB calls Cash account "Bank" which I find very confusing since that is not what you learn in accounting classes and I have never seen on any other accounting system). Yes, the cash you have on your books must reconcile to the cash in bank and on bank statements. Since every other account describes WHAT is in the account, not sure why they decided the Cash account should be WHERE. I always change account names to:  1000 Cash - BofA Checking, 1010 BofA Savings, etc.  and definitely suggest having one COA account for each account at the bank.  So assuming the money in this bank account is an investment in the company, then agree the entry should be a debit to the cash account and credit to equity.     

View solution in original post

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