How do I enter historical transactions without affecting the current balances?

Forum|Forum|7 years ago
April 30, 2019
1 reply
22 views

I am trying to figure out how I can add income/expenses to my client's books without affecting the B/S and I/S as they stand. My problem is, once I've entered the B/S balances, anytime I add a journal entry for an income(donation)/expense item, it changes the final balances. I want to be able to add all income/expense accounts without affecting the balance sheet balances.

Background: I recently inherited a religious organization's accounting and I have a Balance sheet and an Income Statement but I don't have many of the transactions because they were using an outdated system form the 90s and their past accountant left the church. I have the B/S and I/S up to 9/30/2018 so I want to enter all of the information in and continue from there.

QuickBooks Online

john-pero

Level 12

It would take a miracle to be able to enter historical data without affecting current B/S. I am fresh out.

Start with all the historical you want prior to 9/30/18. Then adjust accounts to match the B/S in hand. In a normal for profit this would be Opening Balance Equity. It will be something entirely different but similar for you.

john-pero

Level 12

And dont use journal entries for income or expense except as a last resort. You lose name tracking and it bypasses cash vs accrual

Anonymous

Thanks for the suggestion@john-pero . I am considering entering the amounts and having them offset by an equity account but I fear that may cause the books to get messy.

What other method do you suggest instead of using journal entries?

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