You're correct, lorif. You don't have to enter a beginning balance for the Accounts Payable (A/P) and Accounts Receivable (A/R).
QBO automatically calculates its designated balances based on the outstanding bills (A/P) and invoices (A/R) entries you record in the platform. To ensure accuracy, I recommend reviewing and entering your prior unpaid bills and invoices into QuickBooks to track your overall (Year-to-date) payables and receivables.
On the other hand, it's also proper to input beginning balances for the Assets, Liabilities, and Bank accounts in QuickBooks. Here's how you can record them:
- Bank account - enter the beginning balance from your bank statement as of May 31, 2025.
- Liability accounts - input the amounts you owed as of May 31, 2025.
- Asset accounts - record the value of your assets as of May 31, 2025.
By accurately entering these balances, you'll establish a clean starting point in QBO and ensure all past transactions are accounted for. Doing so helps prevent discrepancies once you're ready to reconcile your accounts.
If you're unsure how to proceed or want to confirm your setup is correct, I recommend seeking assistance from an accounting professional. They can provide tailored guidance on managing your books.
Don't hesitate to reply to this thread once you have follow-up questions.
