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Setsun
May 9, 2021
Solved

fix beginning balance issues in QBO

  • May 9, 2021
  • 2 replies
  • 62 views

Hi all,

 

I have a new client that recently converted from Desktop.  The QB team did the conversion.  My initial bank reconciliation shows an opening balance of a significantly large negative balance.  I reviewed the register and didn't find a date with that amount.  Also, there was no opening balance equity entry.  

 

How can I adjust the beginning balance and complete an initial reconciliation?

Best answer by BettyJaneB

Hello there, @Setsun.

 

I appreciate you for getting back to us. I'd like to provide some clarifications and get you pointed in the right direction to help fix this opening balance concern.

 

There will be a beginning balance in the system if there are reconciled transactions. If you've created changes to the reconciled entries, this will affect your opening balance. This is the reason you're seeing a negative amount.

 

To fix this, you'll need to undo the reconciliation. After that, go to your bank register and remove the R status of your transactions to zero out the amount.

 

Here's how:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Find the account holding the transaction. Then select View register. 
  4. Select the transaction you want to unreconcile to expand the view.
  5. Review the check column. If the transaction is reconciled, you’ll see an “R.” 
  6. Select the checkbox. This changes the letter in the box. Keep selecting it until the box is blank. This removes the transaction from the reconciliation.
  7. Select Save.
  8. Close the account register.

For more details about this process, please see this link: Learn how to unreconcile an individual transaction from a completed reconciliation.

 

After that, to fix your balance, I'd recommend reaching out to your accountant. They'll be able to provide the best course of action for your business since your dealing with 12 years worth of transactions.

 

On the other hand, I'd also recommend checking this great reference, which talks about fixing issues for accounts you've reconciled in the past in QuickBooks Online. This link provides complete steps about handling balance issues: Learn what to review so you can start reconciling.

 

Please don't hesitate to reach out to me here should you have any further questions, I want to make sure you're taken care of. Thanks for coming to the Community.

2 replies

S
SarahannC
Level 9
May 9, 2021

Hello there, Setsun.

 

It's good to know that you've already checked and reviewed the register. I appreciate you for doing that.

 

Since there's no opening balance entry, you'll have to use your bank statements to make sure the opening balance is correct. Then, take note of the date and amount of the oldest transaction in the account. Once done, you'll need to create a journal entry for this. 

 

  1. Go to the +New button.
  2. Select Journal entry under Other.
  3. Enter a date that comes before the oldest transaction in the account. This will be the opening balance date.
  4. On the first line from the Account drop-down menu, select the account you want to enter the opening balance for.
  5. We recommend adding a note in the Description field so you know what the journal entry is for.
  6. On the second line from the Account drop-down menu, select Opening Balance Equity.
  7. Use your bank statements to enter the opening balance. Note: Enter the balance of your real-life account for the date you picked as the opening balance.
  8. Enter the debits and credits based on the type of account you entered on the first line.

 

Afterward, go back to the Chart of Accounts tab to reconcile the journal entry. This prevents it from showing up on your future reconciliation. Here's how:

 

  1. Go to Accounting on the left panel.
  2. Within the Chart of Accounts, find the account and select View register from the Action column.
  3. Search for the journal entry you just created.
  4. Select the box in the checkmark column until you see an R. This reconciles the journal entry.

 

Also,  I'd recommend reaching out to your accountant for further advice on fixing the beginning balance issue in QBO, especially when creating a journal entry.
 

For additional details and tips, feel free to check out these resources:

 

 

If you still need help with the process, please let me know by commenting below. Always take care and have a great day!

S
SetsunAuthor
May 9, 2021

Thank you for the reply.  I'm not sure I understand completely.  There's 12 years of data.  You want me to post an entry in 2008 with the offset to equity.  How does this balance get cleared?  What about the equity account?  I not be grasping your logic completely, please help me understand.

 

BTW, when I try to reconcile, there are no uncleared transactions for the prior periods.

K
Kim_1234
February 13, 2023

After I reconciled my initial transaction, I realized I entered the information incorrectly.  I, then deleted the reconciled transaction.  I am now having trouble with the beginning balance.  It seems I need to recreate the initial transaction.  Do I enter the information as before, incorrectly?  It seems the initial transaction is a transfer type transaction instead of a deposit transaction.  Can I just do a journal entry instead?

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