Thanks for your prompt response, @tchikami92.
In addition to my colleague's response, you'll need to create a journal entry for the opening balance to set as the starting point in tracking transactions for your new client.
Here's how:
- Select + New.
- Select Journal entry.
- Enter a date that comes before the oldest transaction currently in the account. This is your new opening balance date.
- On the first line, select the account you want to enter the opening balance for.
- Use your bank statements to enter the opening balance. It should be the balance for your real-life account on the opening balance date:
- Assets (savings and checking) and expense accounts: Enter the opening balance in the Debit column.
- Liability, equity, and income accounts: Enter the opening balance in the Credit column.
- Accounts Payable: In the Name field, select the vendors you owe money to. Enter the amount as a credit if you want to increase the balance. Or enter it as a debit if you want to lower the balance. You can create separate lines for each vendor. The total amount should equal the opening balance.
- Accounts Receivable: In the Name field, select the customers who owe you money. Enter the amount as a debit if you want to increase the balance. Or enter it as a credit if you want to lower the balance. You can create separate line items for each customer. The total amount should equal the opening balance.
- On the second line, select Opening Balance Equity in the Account column.
- Write a note in the Description field so you know what the journal entry is for.
- When you're ready, select Save.
I've added articles as your references on how to enter the opening balance on a client account:
Also, I'd encourage you to reach an accountant for professional advice on what accounts should be used in entering the opening balance on a journal entry.
Feel free to place a comment if you need further assistance. I'll be around to help. Take care and more power to your business!
