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Level 1

I need help reconciling one of the accounts. There seems to be a negative opening balance equity and it will not let me edit it.

 
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QuickBooks Team

I need help reconciling one of the accounts. There seems to be a negative opening balance equity and it will not let me edit it.

Thank you for posting here in the Community, @usershannon.

 

There are possible reasons why it's showing a negative amount. The first one is that the opening balance when you set it up is incorrect. Another reason is that there may be duplicate transactions.

 

When you correct your opening balance, you'll also fix most beginning balance issues. This way, you can start reconciling your account.

 

To get started, let's first review the opening balance entry in your QuickBooks Online (QBO). Here's how:

 

  1. If you entered an older transaction in your account, you'll want to reconcile it first. Then proceed with these steps.
  2. Go to the Accounting tab, then select Chart of Accounts.
  3. Choose the account that has the negative opening balance on the list.
  4. Click the View register.
  5. Look for the opening balance entry. It should have an "Opening Balance Equity" in the Account column.
  6. Let's take note of the date and balance. However, you can manually enter your opening balance if you've already started entering transactions.

Once done, you'll have to compare the balance to your real-life account.

 

  1. Sign in to your bank's website and look for your bank statement.
  2. Set your account to check the balance for the day you set the opening balance date in your QuickBooks account.
  3. Match the balance on your bank statement to the opening balance you've entered in QuickBooks.

If the opening balance in QuickBooks doesn't match your bank records, edit it:

 

  1. Click the opening balance entry to expand the view.
  2. Edit the balance that matches your bank record under the Deposit column.
  3. Select Save. Then click Yes if QuickBooks is asking for confirmation.

If your opening balance matches your bank record, you entered it correctly. Then, let's review your account register in QBO. 

 

  1. Click Accounting from the left menu and select Chart of Accounts.
  2. Look for the account on the list, then select View register to open the account.
  3. Scroll down and look for the opening balance entry, it should have in the checkmark column.
  4. Review all the lists. There should be a or blank box under the checkmark column.
  5. If the transaction has an R, click the box under the checkmark column until you see a or a blank box.
  6. Select Save.

I'm adding this article for the detailed steps and information: Fix beginning balance issues during your first reconciliation in QuickBooks Online.

 

You might also want to check out this article to learn more about the reconciliation workflow: Learn the reconcile workflow in QuickBooks.

 

If you need any additional assistance while reconciling accounts, you can leave a comment below. I'll be sure to get back to you.

Highlighted
QuickBooks Team

I need help reconciling one of the accounts. There seems to be a negative opening balance equity and it will not let me edit it.

I'm back to ensure everything is working fine, @usershannon.

 

Were you able to fix the negative opening balance equity and proceed with reconciling the account? If you need more clarification on this process, just let me know. I'll be sure to get back to you.

 

Wishing you all the best.

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