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Jessv2017
Level 1

Opening balance equity - from previous accounting software

Hello,

We recently transferred from wave accounting to Quickbooks online. Would it be correct to assume that once everything is set up, quickbooks’ “opening balance equity” line on the balance sheet, should match the previous software’s “equity” line from the balance sheet? 

Solved
Best answer February 01, 2021

Best Answers
Rustler
Level 15

Opening balance equity - from previous accounting software

Yes it is.  And once everything is set up you need to move OBE to owners equity

 

I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this:

[name] Equity (do not post to this account it is a summing account)

>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)

>> Equity Drawing (record the value you take from the business here)

>> Equity Investment (record the value you put into the business here)

View solution in original post

1 Comment
Rustler
Level 15

Opening balance equity - from previous accounting software

Yes it is.  And once everything is set up you need to move OBE to owners equity

 

I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this:

[name] Equity (do not post to this account it is a summing account)

>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)

>> Equity Drawing (record the value you take from the business here)

>> Equity Investment (record the value you put into the business here)

View solution in original post

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