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i have a large negative balance in my Opening Balance equity account, how do I close this out for end of year?

 
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QuickBooks Team

i have a large negative balance in my Opening Balance equity account, how do I close this out for end of year?

Good day @snoel,

 

You'll have to review each transaction entered using the account that has a negative opening balance.

 

Step 1: Check the Opening balance record in your QuickBooks account.

  1. If you entered an older transaction in your account, you'll need to reconcile it first. Then you can continue the following steps.
  2. On the left panel, go to the Accounting tab, then select Chart of Accounts.
  3. Choose the account that has the negative opening balance on the list.
  4. Click the View register.
  5. Look for the opening balance entry. It should have an "Opening Balance Equity" in the Account column.
  6. Let's take note of the date and balance. However, you can manually enter your opening balance if you've already started entering transactions.

Step 2: Compare the balance to your real-life account.

  1. Sign in to your bank's website and look for your bank statement.
  2. Set your account to check the balance for the day you set the opening balance date in your QuickBooks account.
  3. Match the balance on your bank statement to the opening balance you've entered in QuickBooks .

If your opening balance match to you bank record, you entered it correctly. You can proceed to Step 3.

 

If the bank statement does not match on the opening balance in your QuickBooks account, you can edit it. Here's how:

  1. Click the opening balance entry to expand the view.
  2. Edit the balance that matches your bank record under the Deposit column.
  3. Select Save. Then click Yes if QuickBooks is asking for confirmation.

Step 3: Review your account register.

If you're trying to reconcile the account for the first time, there's no need for you to do it since your opening balance will already be reconciled.

 

  1. Go to the Accounting tab and select Chart of Accounts.
  2. Look for the account on the list.
  3. Click the View register to open the account.
  4. Scroll down and look for the opening balance entry, it should have R in the checkmark column.
  5. Review all the list. There should be a C or blank box under the checkmark column.
  6. If the transaction has an R, click the box under the checkmark column until you see a C or a blank box.
  7. Select Save.

 

Once you're done fixing your opening balance, you can start reconciling your account again.

 

If you have any concerns, feel free to drop a comment below. I'm always here to help you back to business. Have a wonderful day!

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