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MMB2023
Level 1

Can I go to opening balance, change the date to 1/1/23 to make sure my checking account beginning balance for this year is correct without affecting previous years?

I have done all bank reconciliations for this year and while they match the statement, the GL and therefore Balance Sheet do not match. I see that the GL has not been correct for quite some time (I'm new). But instead of going back years, I'd like to start fresh this year and ensure that my bank beginning balance at 1/1/23 is correct. The only way I've seen this being possible is by going to the opening balance, changing the date to 1/1/23 and entering the correct amount. Can I do that, or will anything historically be negatively affected? Thanks!
3 Comments 3
Rainflurry
Level 13

Can I go to opening balance, change the date to 1/1/23 to make sure my checking account beginning balance for this year is correct without affecting previous years?

@MMB2023 

 

If your bank recs match your bank statements (but not your GL or BS), then there must be outstanding, uncleared transactions when you go to Reconcile.  Is that what you're seeing?  If so, you want to clean those up.  If they are from previous years and do not apply, then you can make reversing entries (deposits to offset checks, checks to offset deposits) in the current year.  

MMB2023
Level 1

Can I go to opening balance, change the date to 1/1/23 to make sure my checking account beginning balance for this year is correct without affecting previous years?

Thank you! 

I do see a lot of duplicate transactions. Mostly related to interbank transfers. I had been advised previously to delete the dups. But I can't go back years and delete each one individually.  Maybe a JE is the best option if I shouldn't mess with the opening balance?

 

Rainflurry
Level 13

Can I go to opening balance, change the date to 1/1/23 to make sure my checking account beginning balance for this year is correct without affecting previous years?

@MMB2023 

 

Agreed, you should not mess with the opening balance.  Reversing the entries from previous years is essentially deleting them but making them effective in the current year, which is what you want so as not to change previously closed periods.   As I'm sure you're aware, every entry on your Reconcile screen affects two accounts.  So, if these are bank transfers, each transfer affects two accounts, the one transferred from and the one transferred to, so make sure you want both accounts corrected.  You can reverse the entries with transfers (New > Transfer), checks, deposits, or journal entries - they all create debits and credits.  If these are bank transfers, creating transfers that reverse these entries is easiest.  Then, when you reconcile, clear the transfers against the duplicate transactions and all will be good.          

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