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quinn1
Level 4

Adding an opening balance

My account is off by the amount I deposited into my business checking account the day I opened it. I categorized this transaction in my bank feed as owners equity investment.

From what I am reading, my problem is because I did not enter an opening balance when setting up the account in quickbooks.

How do I add an opening balance? I seem to only be able to find instructions for quickbooks online for this topic.

I am using Quickbooks Desktop. Thanks!

7 Comments 7
MaryLurleenM
Moderator

Adding an opening balance

Welcome to the Community, quinn1.

 

Entering an opening balance in QuickBooks Desktop only takes a couple of steps. Here's how:

  1. Click Company on the menu.
  2. Select Chart of Accounts.
  3. Locate the account, then click to open.

You can check this article for more information: Enter opening balances for accounts in QuickBooks Desktop.

 

Don't hesiiate to leave a reply if you have more questions.

quinn1
Level 4

Adding an opening balance

Hi. Thank you for directing me to the article. The article doesn't explain how to add an opening balance to an account which was already created without one, like mine.

 

MaryJoyD
QuickBooks Team

Adding an opening balance

I can show you detailed instructions on how to change the opening balance of the account, @quinn1.

 

Here’s how:

 

  1. Go to the Lists menu and then select Chart of Accounts.
  2. Locate and right-click the account that you want to add an opening balance. COA1.JPG
  3. On the window that appears, select Change Opening BalanceCOA2.JPG
  4. Look for Opening Balance Equity in the Account column of the register and then edit the amount.
  5. Once you’re done, select Record to save your changes.
You can also adjust account balances using journal entries. However, this is only recommend for accounting professionals because it can create unexpected results in QuickBooks reports.

 

Let me know if you still need further assistance in setting up an opening balance by leaving a comment below. Take care and have a wonderful day!

vpcontroller
Level 11

Adding an opening balance

@quinn1 

 

Since you have duplicate deposit transactions, you will need to delete one deposit.

It's preferred to delete opening balance entry since you added another one from the bank feed.

When you add Opening Balance when creating a new account, the other side goes to the Opening Balance Equity account. 

Go the Chart of Accounts (Lists menu on top > Chart of Accounts).

Locate Opening Balance Equity account in your Chart of Accounts (COA). 

Double click the account. Now you're on the Equity Register.

Locate the Opening Balance transaction.

Under the Memo column, you should see ACCOUNT OPENING BALANCE. Right-click your mouse. You should EDIT DEPOSIT. Select Edit Deposit. The actual transaction should open.

Make sure this is the one you want to delete. From Edit menu top left, select DELETE DEPOSIT. It will prompt with "are you sure..." warning, click OK. Done.

 

See the screenshot below for reference.

QBDT - Delete Deposit

 

 

 

 

quinn1
Level 4

Adding an opening balance

I appreciate everyone's assistance, and I am sorry if I am missing something here. I do not show or have an opening balance for the account. So when I follow instructions to change the balance, I am unable to do so in the register because there is no opening balance account in the register for that account. Only the "owners equity investment" account which I recorded the cash deposit from my bank feed to.

AlexV
QuickBooks Team

Adding an opening balance

We can create a journal entry, quinn1.

 

This will correct the opening balance of your account. You can follow these steps:

  1. Go to Accountant menu and select Make General Journal Entries.
  2. In the first line, select the Account you want to enter the opening balance. Enter the opening balance amount on the Debit column.
  3. Choose Opening Balance Equity account on the next line. In Credit column, enter the same amount.
  4. Click on Save & Close.

I'd also suggest reaching out to your accountant for additional guidance with this.

 

Once done, open the account to verify if the opening balance is reflecting already.

 

This will fix your concern about opening balance. Comment again if you need more help.

quinn1
Level 4

Adding an opening balance

Thank You! @AlexV  !

 

So I was able to enter the journal entry, now I am curious, shouldn't my opening balance equity account show zero? Am I supposed to link the "owners equity investment" deposit somehow with the opening balance equity?

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