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Level 1

Credit Card Opening Balance for New Company File

I incorporated my business at the very end of 2018, and started a new QB company file starting Jan 1 2019 for the new LLC. I had a credit card that I used for my sole prop that I continue to use for the new LLC. 

 

Im just starting to reconcile the credit cards, and I just realized that my opening balance is not right. 

 

My statement start date is the 5th of the month, and ends on the 4th, so I have 4 days worth of charges on the last 2018 statement, and then a new statement starting Jan 5th. 

 

What is the correct way to get my opening balance right so that when I reconcile that credit card, it will correctly reconcile? Assuming that I need to make some kind of GL entry with the opening balance of that last 2018 statement, and then reconcile through that statement, and that seems like it will set me on the right path for the statement starting Jan 5th 2019. Is that right? 

 

Guidance is needed and appreciated :) 

 

Thanks for the help in advance!

Solved
Best answer December 17, 2019

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Level 1

Credit Card Opening Balance for New Company File

Hi MaryLandT, 

 

Thanks for the reply. I was a bit confused by the explanation, but I think I found a more simple resolution. Hope this might help someone else in a similar situation some day. 

 

Go to the Chart of Accounts, right click to edit the account, there is a 'Change Opening Balance' button that handles the journal entry automatically. 

 

In my case, since I started a new company file for the LLC, and used a credit card that had been used previously for the sole prop, and my statement was in the middle of a billing cycle when the switchover happened, I had to do the following to get things to work: 

 

1) the transactions that were imported from the bank connection starting Jan 1 2019 to the LLC, I added those transaction totals. 

 

2) from the Statement, I subtracted that above mentioned total from the closing balance on the credit card statement that was in the middle of the billing cycle. 

 

3) That amount became my opening balance for the credit card, which I changed using the method described above (Chart of Accounts, right click on the credit card account, click 'Change Opening Balance', add that opening balance total to Payment side, assign to the account Opening Balance)

 

4) then I reconciled the first partial month, and it reconciled to $0. All subsequent reconciliations went smoothly after that initial reconciliation was sorted out. 

 

A little tricky, but managed to get it to work. 

 

Thanks anyway. 

View solution in original post

2 Comments
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QuickBooks Team

Credit Card Opening Balance for New Company File

Thank you for contacting us, Zero1Niner.

 

I'm here to guide you with the reconciliation process in QuickBooks Desktop.

 

Below are the following reasons why the opening balance isn't right:

  • No balance or an incorrect balance was entered.
  • A transaction was accidentally voided, deleted, or change the amount of a previously cleared from the last reconciliation.

To fix this, enter the opening balance for the account if it's zero. You can create a journal entry for it. However, I still recommend consulting your accountant when you decide to perform this. He/She might have specific instructions on what accounts to debit or credit.
   

On the other hand, edit the opening balance if it's different from the last 2018 statement. Then, enter the right amount to get the correct balance when you reconcile the account.

 

Let me show you how:

  1. Go to the Lists menu, then select Chart of Accounts.
    openingbal.PNG
  2. Locate and double-click the account.
  3. Look for Opening Bal Equity in the Account field.
  4. Change the amount to correct it.
  5. Click Record.
    openingbalance.PNG

I've added this article: Fix issues when you're reconciling for additional information. This link will show you how to ensure your bank statements match with the accounts in QuickBooks Desktop.

 

Keep me posted if you need additional information by leaving a comment below. I'm always around to help you out.

Highlighted
Level 1

Credit Card Opening Balance for New Company File

Hi MaryLandT, 

 

Thanks for the reply. I was a bit confused by the explanation, but I think I found a more simple resolution. Hope this might help someone else in a similar situation some day. 

 

Go to the Chart of Accounts, right click to edit the account, there is a 'Change Opening Balance' button that handles the journal entry automatically. 

 

In my case, since I started a new company file for the LLC, and used a credit card that had been used previously for the sole prop, and my statement was in the middle of a billing cycle when the switchover happened, I had to do the following to get things to work: 

 

1) the transactions that were imported from the bank connection starting Jan 1 2019 to the LLC, I added those transaction totals. 

 

2) from the Statement, I subtracted that above mentioned total from the closing balance on the credit card statement that was in the middle of the billing cycle. 

 

3) That amount became my opening balance for the credit card, which I changed using the method described above (Chart of Accounts, right click on the credit card account, click 'Change Opening Balance', add that opening balance total to Payment side, assign to the account Opening Balance)

 

4) then I reconciled the first partial month, and it reconciled to $0. All subsequent reconciliations went smoothly after that initial reconciliation was sorted out. 

 

A little tricky, but managed to get it to work. 

 

Thanks anyway. 

View solution in original post

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