Solved: Re: Enter the opening balance in the bank account as of a sta...

TirzahC · ‎June 17, 2021

You've come to the right place. Allow me to provide some insights about entering opening balances in QuickBooks Online, SunshineTim.

To answer your question, you'll need to enter the opening balance in the bank account as of the statement ending date or before the Quickbooks account start date and then enter what is outstanding in your bank account register, to clear it out. If you have outstanding checks or other open balance sheet items, you need to enter these as well. Enter the outstanding checks as of the date they were written.

I'd suggest reaching out to your accountant to ensure your books are accurate at the beginning of the fiscal year to avoid any issues/discrepancies.

Take a look at this article for additional information: Enter historical information. It shares the best practices on entering historical transactions, along with the steps on how to record them in QuickBooks Online (QBO).

For more information, refer to this article: Enter an opening balances for an account in QuickBooks Online

Let me know if you have follow-up questions. I'm just posting away. Keep safe!

SunshineTim · ‎June 18, 2021

Thank you for the response. Just to clarify the mechanics:

When I enter the outstanding checks in QBO, it will debit AP, correct? If so, that means I need to adjust my AP opening balance to include the outstanding checks, and when the checks are then entered it will adjust it back to what the actual ending AP balance is on the old system's trial balance. Is that all correct?

Thanks,

Tim

SunshineTim · ‎June 22, 2021

TirzahC,

Can you clarify what account I need to choose when entering the checks in the register, and what needs to be done to prevent the equity or P&L to be affected?

Thanks,

Tim

longmike · ‎September 30, 2021

Can you simply enter the outstanding checks in the new system and "expense" them to cash? It keeps the cash balance correct. the payments flowing into online banking will match the check for reconciliation purposes and the P&L is not effected in the current year.

Regor · ‎November 27, 2021

how do you enter the old check in the registry since it demands an account to charge the check to. If you charge it to the account, you have now charged that account twice. Also, some say do not put in the previous checks, just wait until they clear. If I have $5000 in outstanding checks I need my check registry to show that and the correct balance available so I do not write a check and get overdrawn at the bank.

Thanks

AbegailS_ · ‎November 27, 2021

Thanks for joining the thread, Regor.

It would be best to seek advice from your accountant regarding this matter. They'll be able to provide a more detailed information about how to handle these old check in the registry.

To help keep your accounts balanced and up-to-date, I encourage reading these articles:

Let me know in the comment section if you need further assistance. Have a good one.

Topics

Training

Community

Resources

How do I enter outstanding checks from prior FY and old accounting system.

How do I enter outstanding checks from prior FY and old accounting system.

How do I enter outstanding checks from prior FY and old accounting system.

How do I enter outstanding checks from prior FY and old accounting system.

How do I enter outstanding checks from prior FY and old accounting system.

How do I enter outstanding checks from prior FY and old accounting system.

Need to get in touch?