cancel
Showing results for 
Search instead for 
Did you mean: 
annmdumais
Level 1

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

 
6 Comments 6
ChristieAnn
QuickBooks Team

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

Hi there, annmdumais.

 

I'll share information on why credit card reconciliation has a beginning balance.

 

The beginning balance depends on the initial actual balance from your bank statement. Sometimes the opening balance doesn't include transactions that were still pending when you made the account. Here are some reasons you're seeing the beginning balance when you reconciled your Credit Card:

 

  • A user has entered an incorrect opening balance when creating the account in QuickBooks.
  • There are transactions older than the opening balance.
  • When connecting an account, QuickBooks enters the opening balance for you.
  • There are manually reconciled transactions. These items won't show up during the reconciliation

 

To fix this, I suggest double-checking what you entered for the opening balance. To do this, you'll need to go to the Bank register page.

 

Here's how:

 

  1. Click 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. If you see this and the account should not have a beginning balance, remove it by clicking on the deposit and selecting the Delete option. Then, click Yes to confirm. You can also use the Edit option and manually change the amount to zero (0).

 

Then, compare the balance to your real-life account. You can click this article to see the detailed steps and how to finish the process: Fix beginning balance issues during your first reconciliation in QuickBooks Online.

 

You can also refer to this article to view details on how the beginning balance is calculated: About beginning balance discrepancies.

 

After that, you can now start reconciling your account in QuickBooks.

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

annmdumais
Level 1

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

When I go into the register for my credit card account, there is no "opening balance entry". The first transaction I have in the register is on 1/1/2020 for $120 and I can see that is also the balance in the account. There are no entries in the register prior to that entry. I went to reconcile the account for the first time and there is a beginning balance. I don't understand where that beginning balance is coming from if there is no opening balance entry. How can I change that beginning balance to $0? 

Adrian_A
Moderator

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

Thanks for getting back to us, annmdumais.

 

In QuickBooks Online, the beginning balance is the ending balance of the last reconciliation. That said, we're unable to change it to $0.

 

 In your case, since there's no opening balance, we can create a Journal Entry and then use the Opening Balance Equity account.

 

Let me guide you with these steps:

 

  1. Click the + New button, select Journal Entry.
  2. In the first line, select your credit card account.
  3. Enter the AMOUNT on the DEBIT column.
  4. Select Opening Balance Equity in the second line.
  5. Enter the amount on the CREDIT column.
  6. Click Save and close.

 

Afterward, you're good to reconcile the account. Here's an article as your guide:  Reconcile an account.

 

I'm just around if you still need my help. Stay safe!

Vanessa1992
Level 1

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

Hello, 

This solution does not fix the issue, and by posting to an opening balance equity account, you are going to through off the entire company's retained earnings. I am also having the same issue with a credit card. 

Rubielyn_J
QuickBooks Team

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

Thanks for joining the thread, @Vanessa1992

 

Let me provide additional insights about opening balance in QuickBooks Online. 

 

The opening balance on your statement is the total amount your bank has recorded. Also, the way QuickBooks Online calculates the beginning balance depends on whether the account has ever been reconciled before. 

 

If the opening balance for one of your credit card accounts is wrong, you can edit it through the View register for the account.

 

Here's how:

  1. Go to the Settings ⚙️menu, and then choose Chart of Accounts.
  2. Find the account, go to the Action column, and select View register.
  3. Find and choose the opening balance entry. 
  4. Click the Edit ✎ icon to modify the amount.
  5. Once done, select Save

If there's no opening balance listed, see how to enter an opening balance for an existing account.

 

Meanwhile, I'll be adding this to guide you with fixing issues when you reconcile an account in QuickBooks Online.

 

Please get back in here if you have other concerns. I'll be happy to help you more. Stay safe and healthy always. 

Vanessa1992
Level 1

Why is does my first credit card reconcilation have a beginning balance? Nothing is in the register for the account. I decided to begin reconciling my Amex acct as of TY

Hi There, 

As noted by the original poster, there is nothing in the register. There is no entry for the opening balance. There is nothing sitting in 'Opening Balance' equity. And there shouldn't be. It is the first time reconciling the account so the opening balance should be '0', yet there is an amount sitting there when we go to reconcile. This is the exact amount that my bank reconciliation is off by as it should be '0'. If we were to just blindly make an adjustment it will throw off a company's equity, and equity is important to shareholders/owners, so a company cannot just make an adjustment due to some sort of technical error. 

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