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CarrieT1
Level 2

Equity Accounts Correction

The manager noticed that some of the equity transactions from last year are not correct.  Can I go in and correct these?  Do I use last years date or current date?  Also the books were never officially "closed".  Can I do that now after the corrections are made?  

3 Comments 3
RCV
QuickBooks Team
QuickBooks Team

Equity Accounts Correction

Thanks for checking in with us, CarrieT1.

 

We can correct the equity account on your register as long as it is not yet reconciled. The date will determine when that changes or corrections you make will take effect or when it will be reported. Just go to the account register and review your transactions or make quick edits. The register allows you to filter and sort transactions that speed up your search. 

 

Here's how:

 

  1. Go to Accounting on the left side menu.
  2. Select Chart of Accounts.
  3. Find and select the register you want to review. Then, tick View register in the Actions column. 
  4. Select the Filter icon. Then select the filters you want you to apply. You can use the Find field to search by amount, reference number, or memo.
  5. Find and select the transaction in the account register to expand the view.
  6. Make changes in the available fields.
  7. If you want to change something in the grayed-out sections, select Edit. This opens the full transaction form where you can make additional changes.
  8. Press Save and close.

See Find, review, and edit transactions in account registers article for the steps and details about this one. 

 

We can also make corrections with the equity account by creating a journal entry. However, it would be best to consult your account on what posting account and the date period you'll need to apply.

 

When you're ready to assess your business financials, you can reconcile your bank account in QBO. Feel free to visit our Banking page fr more insights about managing your bank transactions.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one.

 

CarrieT1
Level 2

Equity Accounts Correction

thanks  

In doing further research, there was a loan taken to start the business.  I do not see any liability for the loan.  I see the deposit into the checking account.  The received from is blank, the account is Owners Investment.  How do I record the liability for the loan?

AlexV
QuickBooks Team

Equity Accounts Correction

Good day, CarrieT1.

 

Let me assist you in recording the loan in QuickBooks Online.

 

We have to make sure to set up a liability account first to record what you owe. If you haven't yet, you can follow these steps:

  1. Go to the Accounting tab and select Chart of Accounts.
  2. Select New. Choose either Other Current Liabilities or Long Term Liabilities from the Account Type drop-down.
  3. In the Detail Type drop-down list, select either Other Current Liabilities or Long Term Liabilities.
  4. Enter a Name for the account and click Save and close.

Once done, you can create a journal entry to record the loan and a check for the payment. Please read these articles for more details:

I'll be here if you have more questions. Wishing you all the best!

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