I have a bank account that was reconciled with the wrong opening balance. How can I change the opening balance?

Hello there, Yo_Be_Low. I appreciate you bringing this to our attention and I'm here to help correct the opening balance, so you can reconcile the next month's statement efficiently.

Each time you start reconciling an account, you review the beginning balance in QuickBooks. It's the amount in the account at the beginning of the time period you're reviewing.

The beginning balance amount should match what's on your bank statement for the same start day. That being said, you can fix the opening balance by entering the balance of your real-life bank account.

You need to set the opening balance at the beginning of a bank statement. Then, you can follow these steps to review it:

1. Select the Accounting menu, then select Chart of Accounts.
2. Find the account on the list.
3. Select View register.
4. Search for the opening balance entry. It should have "Opening Balance Equity" in the Account column.
5. Take note of the date and balance.
6. Next, you need to compare the opening balance with your real-life account.
7. Sign in to your bank's website, or find your bank statement.
8. Check the account's balance for the same day as the opening balance in QuickBooks.
9. Compare the two balances.

If the opening balance in QuickBooks doesn't match your bank records, here's how to modify it:

1. In QuickBooks, select the opening balance entry to expand the view.
2. Edit the date, then the amount. If needed, select Edit to make your changes. 
3. Select Save.

If they match, you can proceed to Step 3 in this article: Fix issues the first time you reconcile an account in QuickBooks Online.

Once you fix the opening balance, you can start reconciling the next month's bank statement.

I'll always be available in this thread, so you can reply anytime in the comments below if there's anything else you need assistance with. Just keep me posted and I'll make sure to get you covered. Keep safe and have a good one!

There isn't an opening balance entry in the register. If there was, I'd just change it.

I appreciate you for updating us on this, @Yo_Be_Low. 

It seems like you forgot to enter an opening balance when you created an account. If so, we'll need to manually enter an opening balance. First, let's create a journal entry to record it. 

Utilize this approach only if you haven't reconciled the account yet. If you've already reconciled it, or have any questions, it's advisable to contact your accountant. This process can be complex, and they are equipped to manage the subsequent actions. If you're not affiliated with one, we can help you find a ProAdvisor.

Here's how to create a journal entry:
 

1. Go to the + New button, and select Journal entry.
2. Enter a date that comes before the oldest transaction in the account. This will be the opening balance date.
3. On the first row of the Account column, click the dropdown menu to choose the account you want to enter the opening balance.
4. Add a note in the Description field so you know what the journal entry is for.
5. On the second row of the Account column, select the dropdown and choose Opening Balance Equity.
6. Use your bank statements to enter the balance of your real-life account on the date you picked as the opening balance. You'll need to enter both a debit and a credit to keep things accurate. Enter the debits and credits based on the type of account you entered on the first row.
7. When you're ready, select Save and Close.
    

Please know that it's important to reconcile the journal entry, even if you haven't reconciled the account yet. This will prevent it from appearing in a future reconciliation. Refer to this article that details the process: What to do if you didn't enter an opening balance in QuickBooks Online.

After creating a journal entry, the opening balance is reconciled in your account, and QuickBooks won't include it in future reconciliations. This should balance your accounts, and you can proceed with the regular steps to reconcile the account.

I'm adding this article to learn what to review so you can start reconciling: Fix issues for accounts you've reconciled in the past in QuickBooks Online.

Never hesitate to get back to us if you have further questions about entering an opening balance in QuickBooks. The Community team is all right here to help you anytime.  

I had already added an opening balance via a journal entry. When I try to reconcile, it gives me an error saying "Your account isn't ready to reconcile yet. Your beginning balance is off by _______". This is because someone else setup the account years ago, and it appears they ran a reconciliation using an incorrect opening balance. What that opening balance was doesn't appear anywhere. I need to change it to be the correct opening balance.

Let me help you change the opening balance so you can correctly reconcile your transactions, Yo_Be_Low.

You'll have to double-check the opening balance for the account you're reconciling. There are times, they don't include transactions that were still pending when you created the account. Remember, the opening balance is the balance of your bank account on the day you choose to start tracking transactions.

If you recently entered older transactions dated before your opening balance, here's how to reconcile them. Once done, continue with these steps.

1. Go to Settings ⚙, then Chart of accounts.
2. Locate the account on the list.
3. Select View register.
4. Search for the opening balance entry. It should have "Opening Balance Equity" in the Account column.
5. Take note of the date and balance.

Then, compare the opening balance with your real-life account. Here's how:
 

1. Sign in to your bank's website, or find your bank statement.
2. Check the account's balance for the same day as the opening balance in QuickBooks.
3. Compare the two balances.

If the balances match, you entered the opening balance correctly. But, if the opening balance in QuickBooks doesn't match your bank records,  you can correct it: Follow the steps below:

1. In QuickBooks, select the opening balance entry to expand the view.
2. In the Deposit column, edit the balance so it matches your bank records.
3. Click Save.

Furthermore, you'll want to view, print, or export a reconciliation report, check out this article for more information: How Do I View, Print, Or Export A Reconciliation Report?

Any other concerns with the opening balance or reconciliation? You can always message me so I can get back to you as soon as possible.

Hi, everything you posted is super helpful! However, I have an issue that I cannot resolve: I accidentally entered the wrong month's bank statement previous balance in the opening balance and I can't change that in the reconciliation. How can I change that opening balance? Thank you! 

I’ve noticed that you posted a similar concern to this forum concerning the benefits of QuickBooks Online.

In that manner, my colleague has already responded to your other post and outlined a solution to get things sorted out. If you have not yet notified of my response, you can go to this link to be routed accordingly: https://quickbooks.intuit.com/learn-support/en-us/banking/re-can-a-beginning-balance-on-a-reconcilia....

You’re always welcome to the Community whenever you have queries about QuickBooks. I’m always here to help.