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birdman518
Level 1

Setting up account opening balance

I am getting ready to set up QB for managing my personal finances.   This is partly as an accounting educational exercise.  :-)

My thinking is a follows.   For my checking account, I will enter the balance in my current checkbook register. Then, just as I would do for reconciling, I will enter outstanding checks (or e-payments) that have not cleared the bank yet.   That way, my accounting will be accurate.   Does that sound right?

Next, for my one credit card account..  I suppose I can enter the outstanding balance and be all set.  I won't have the actual makeup of the balance for the past, but going forward I will enter purchases and payments.   

Does this sound correct?   I just want to start today and not have to worry about last month's statements, etc.

Thanks!

Solved
Best answer September 02, 2021

Best Answers
Rustler
Level 15

Setting up account opening balance


@birdman518 wrote:

I am getting ready to set up QB for managing my personal finances.   This is partly as an accounting educational exercise.  :-)

 

QB is double entry accounting, personal finance is single entry bookkeeping.  You can use QB for personal but really Quicken is designed for it and it will be much easier in Quicken.

 

My thinking is a follows.   For my checking account, I will enter the balance in my current checkbook register. Then, just as I would do for reconciling, I will enter outstanding checks (or e-payments) that have not cleared the bank yet.   That way, my accounting will be accurate.   Does that sound right?

 

The starting balance should be the balance in the bank account PLUS the total of the outstanding checks.  Then the current balance (after checks are subtracted) will match the current balance

 

Next, for my one credit card account..  I suppose I can enter the outstanding balance and be all set.  I won't have the actual makeup of the balance for the past, but going forward I will enter purchases and payments.   

Yes that works

Does this sound correct?   I just want to start today and not have to worry about last month's statements, etc.

Thanks!


 

View solution in original post

1 Comment 1
Rustler
Level 15

Setting up account opening balance


@birdman518 wrote:

I am getting ready to set up QB for managing my personal finances.   This is partly as an accounting educational exercise.  :-)

 

QB is double entry accounting, personal finance is single entry bookkeeping.  You can use QB for personal but really Quicken is designed for it and it will be much easier in Quicken.

 

My thinking is a follows.   For my checking account, I will enter the balance in my current checkbook register. Then, just as I would do for reconciling, I will enter outstanding checks (or e-payments) that have not cleared the bank yet.   That way, my accounting will be accurate.   Does that sound right?

 

The starting balance should be the balance in the bank account PLUS the total of the outstanding checks.  Then the current balance (after checks are subtracted) will match the current balance

 

Next, for my one credit card account..  I suppose I can enter the outstanding balance and be all set.  I won't have the actual makeup of the balance for the past, but going forward I will enter purchases and payments.   

Yes that works

Does this sound correct?   I just want to start today and not have to worry about last month's statements, etc.

Thanks!


 

View solution in original post

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