How to change opening balance?

I'm here to help correct the opening balance so you can reconcile the next month's statement, mgbdc.

Each time you start reconciling an account, you review the beginning balance in QuickBooks. It's the amount in the account at the beginning of the time period you're reviewing.

The beginning balance amount should match what's on your bank statement for the same start day. That being said, you can fix the opening balance by entering the balance of your real-life bank account.

You need to set the opening balance at the beginning of a bank statement. Then follow these steps to review it:

1. Select the Accounting menu, then select Chart of Accounts.
2. Find the account on the list.
3. Select View register.
4. Search for the opening balance entry. It should have "Opening Balance Equity" in the Account column.
5. Take note of the date and balance.
6. Next, you need to compare the opening balance with your real-life account.
7. Sign in to your bank's website, or find your bank statement.
8. Check the account's balance for the same day as the opening balance in QuickBooks.
9. Compare the two balances.

If the opening balance in QuickBooks doesn't match your bank records, here how to correct it:

1. In QuickBooks, select the opening balance entry to expand the view.
2. In the Deposit column, edit the balance so it matches your bank records.

If they match, you can proceed to Step 3 in this article: Fix issues the first time you reconcile an account in QuickBooks Online.

Once you fix the opening balance, you can start reconciling the next month's bank statement.

Let me know if you have a follow-up question by commenting below. I'll be around to help reconcile your bank accounts in QuickBooks.

Thank you so much for the info! But what do I do when the account has years worth of records in the register?

I found the month and year with the issue but see no opening balance equity. Is there a new opening balance each year? I can't go back to 2014 etc. when the account was created, the issue is more recent.

Good morning, @snowflower. 

Thanks for joining in on this thread. I hope your day is going well so far. 

Opening balance equity is an offset entry used when entering account balance into the software. There's not a new opening balance each year. Let's ensure that you don't have an opening balance in your account already before moving forward. Here's how: 

1. Go to the Accounting tab on the left-hand menu bar. 
2. Choose the Chart of Accounts portion of the page. 
3. Locate the account and hit View register in the "Action" column. 
4. Search for the entry. Opening Balance Equity will be in the Payee/Account column and Opening Balance in the memo column. 

If there isn't one, follow the steps below. Take note of the date and amount of the oldest transaction in the account. 

1. Press the +New button. 
2. Under the "Other" column, pick Journal entry. 
3. Enter all the required information. Here's a link about what details need to be included: What to do if you didn't enter an opening balance. 
4. Tap Save. 

Afterward, manually reconcile this transaction. Continue to click the box in the picture below until it shows an R. Hit Save when done. 

However, if you're seeing the problem in a month of transactions that are already reconciled, you'll need to get your accountant to undo the reconcile. After that, you can correct any errors that are there. 

In addition, once you get back on track, you can start reconciling again. 

These steps should do the trick. If you have any trouble along the way, just let me know. I'm only a post away if you need me. Have a great day! 

How do we do this if the account does not have a begging "Opening Balance Equity" entry?

Let me share details about handling the Opening Balance Equity account in QuickBooks Online (QBO), TommyWillB.

Opening balance equity is used to create initial balances or balance adjustments. Should you need to enter an opening balance, you can do it using a journal entry. Here's how: 

1. Select + New.
2. Select Journal entry.
3. Enter a date that comes before the oldest transaction in the account. This will be the opening balance date.
4. On the first line from the Account dropdown, select the account you want to enter the opening balance for.
5. Add a note in the Description field so you know what the journal entry is for.
6. On the second line from the Account dropdown, select Opening Balance Equity.
7. Use your bank statements to enter the opening balance. Enter the balance of your real-life account for the date you picked as the opening balance.
8. Enter the debits and credits based on the type of account you entered on the first line.
   • Asset (savings and checking) and expense accounts: Enter the opening balance in the Debit column on the first line. Then, enter the same amount in the Credit column on the second line.
   • Liability, equity, and income accounts: Enter the opening balance in the Credit column on the first line. Then, enter the same amount in the Debit column on the second line.
   • Accounts Payable: On the first line in the Name field, select the vendor you owe money to. Enter the opening balance as a credit to increase the balance. Or enter the opening balance as a debit to decrease the balance. Then, enter the same amount in the opposite column on the second line.
   • Accounts Receivable: On the first line in the Name field, select the customers who owe you money. Enter the opening balance as a debit if you want to increase the balance. Or enter the opening balance as a credit if you want to decrease the balance. Then, enter the same amount in the opposite column on the second line.
9. When you're ready, select Save.
10. Use your bank statements to enter the balance of your real-life account for the date you picked. If your balance is positive, enter it in the Debit column. If your balance is negative, enter it in the Credit column.
11. Enter "Opening balance" in the Description field so you know what the journal entry is for.
12. On the second line from the Account dropdown, select Opening Balance Equity. The Debit/Credit and Description fields will populate automatically.
13. When you're ready, select Save.

For more info, check out this article: What to do if you didn't enter an opening balance in QuickBooks Online

Here are a few Community Articles that you may find helpful: 

• Edit an incorrect opening balance 
• Understanding the Opening Balance Equity Account 

You can always get back to us if you need further help with your opening balance equity entry.  We're always here to help. Take care!

I am just setting up Quickbooks for the first time. I made an error entering a couple of account balances 

I went to settings and chart of accounts but the option to View Register is not available. There is an edit option but it doesnt allow me to change the balance only the descriptions. 

Thank you for joining the thread, @Kari70. I'll be your guide on how to access the View Register on your Chart of Accounts. 

This isn't the kind of experience that I'd like you to have while using QuickBooks Online. Don't worry, I'm here to add some insights about the differences between the View Register and Run Reports functions.

One of the possible reasons why you're not able to access the View Register is that you're not the Company Admin. In this case, you'll need to contact the Master Admin so they can add you as a new user. 

For more information, you can click this link to learn more about user types and permissions. 

Only balance sheet accounts with running balances, such as banks, assets, liabilities, and equities, are shown in the View Register. While you can see the Run Report for income and expense accounts. This option allows you to focus on a specific account.

After that, you'll need to locate the transactions. You can either edit the amount and date or delete them. This will help you configure how to sort and filter transactions in a register.

Once done, you can proceed to correct the beginning balance. It's the amount in the account at the beginning of the period. That being said, you can fix the opening balance by entering the balance of your real-life bank account.

Here are some informative articles that can help you understand more about the COA and Account Register:

• Learn about the chart of accounts in QuickBooks.
• What are account registers in QuickBooks Online?

Moreover, you'll want to reconcile to see why discrepancies are appearing between the two balances. This is a great way to ensure the accuracy and validity of financial information.

Please update us if you have additional concerns about View register. The Community is always here to provide further help. Have a great day.

My question regards not only changing the numerical value of the opening balance transaction, but the date. Someone synced our bank accounts - and thus, opening balance - September 2nd 2021. However, we would like to start using QBO from the new fiscal year on Nov 1st. To avoid having to go through and reconcile all of the Sept and Oct transactions, we would like to exclude them and just amend the date AND value of the opening balance equity transaction to that of the statement on November 1st. Is it okay to do this as long as the account has never been reconciled before?

We found it via chart of accounts > account > history > opening balance equity... we appear to be able to edit both fields (date and amount).

Thank you!

Hi there, @Eady2021.

Thank you for reaching out to us here in the Community. I can provide clarification about updating the opening balance details in QuickBooks Online.

Yes, it's safe to change the date and amount of the Opening Balance Equity. The details should be accurate to reconcile the account correctly and avoid discrepancies.

Also, I recommend seeking expert advice from an accountant regarding excluding transactions from the prior month. This way, you'll be able to ensure that the process is adequate and your books are error-free.

Check out this screenshot for your visual guide:

For additional reference, you can use the following link to learn more about how to organize your accounts, like assigning account numbers in QuickBooks: Learn about the chart of accounts in QuickBooks.

Leave a comment below if you have other concerns regarding the chart of accounts or opening balance. The Community and I will be around to help you. 

sales tax is now negative when i try to pay it.

After changing the date ( back dated one month )  and value ( value for start of the prior month ) of my opening balance equity account, and then entering all sales, deposits, checks, charges, and ACH, my sales tax due in the Vendors..Sales Tax ... Pay Sales Tax window shows negative. I had to adjust the sales tax increasing it by a significant sum.  this feels like a bug as the reports for sales tax due all show positive correct values.

i am running the most recent release Quickbooks Desktop Pro Plus 2022

Hey there, MikeTLive.

Verifying and rebuilding your data is a good start when it comes to fixing data-related issues in QuickBooks Desktop.

To Verify Data:

1. Click Window at the top menu bar, then Close All.
2. From the File menu, choose Utilities.
3. Tap Verify Data.
   

To Rebuild Data:

1. Click Window at the top menu bar, then Close All.
2. From the File menu, choose Utilities.
3. Hit Rebuild Data.
   
4. You will receive a warning message to backup your company file, press OK.
5. Click OK when you get the message "Rebuild has completed".

You may want to visit the following resources. These will provide you details on how sales tax works as well as steps to generate a report in QuickBooks Desktop:

Set up sales tax in QuickBooks Desktop

Sales Tax Liability Report: Total sales is different from total income.

Feel free to drop a reply below if you need further assistance. I'll stick around to help you out.

executed both utilities - verify and rebuild - no problems found

currently i have a sales tax adjustment that i had to create to make it zero out.

i drilled down into the sales tax liability report and found a line where the tax payment was POSITIVE whereas all other tax payments were NEGATIVE. I deleted this transaction and now the tax liability report is correct, but .

going in to PAY the sales tax, however, shows it as a different negative value.

it is as if the amount due is being computed two distinctly different ways using different numbers.

the negative balance shows up on the day BEFORE my first sales transaction where sales tax is actually collected.

Thanks for your prompt response and for providing more details, @MikeTLive.

You may need to adjust the amounts for sales tax items to allow the allocated amount to match the reporting. You can follow these steps to increase the sales tax in the Pay Sales Tax window:

1. From the Customers menu, select Enter Sales Receipts.
2. Leave the Customer field blank.
3. In the Tax drop-down, select a 0% sales tax item.
   Note: If none exists, click Add New and create one.
4. In the Item column, click the first empty line then select the sales tax item you want to adjust.
5. In the Amount column, enter the amount of the adjustment then press Tab or Enter.
6. Click OK when you receive the message "Changing the amount of a tax line item may cause your sales tax reports to be incorrect."
7. Repeat steps 4 to 6 for any other sales items to be adjusted.
8. Click Save & Close.

If it still shows a negative amount on the Pay Sales Tax window, I recommend contacting our Technical Support Team. They'll pull up your account in a secure environment and investigate what's causing this issue. You may send a message via chat, call us at a time convenient to you, or we’ll get in touch with you instead. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays PST.

1. Click the Help icon on the top menu. 
2. Choose QuickBooks Desktop Help. 
3. Tap Contact us.
4. Select Search for something else and enter your concern in the Tell us more about your question: field. 
5. Tap Search. 
6. Choose Start a Message or Get a Callback to connect with our support.

Please share updates on how it goes, to assist you more through this thread. I'm always here to back you up. Have a great day ahead.

worked with support chat for a few hours today. only resolution was a workaround. deleting the adjustments already made. pay sales tax window,  sett date to earliest day before collectingsales tax. this gives the negative value needing to be adjusted for, adjust increase this value, account - ask my accountant. then go back and try to pay the sales tax.   this was now positive.  im still convinced there is a bug inside relating to modifying the "opening balance equity" account and entering old transactions.

solved the condition.

noticed that the required adjustment was exactly the same as the sum of all future tax payments.

followed the tip from this article and saw doubles for those same tax payments. I then deleted them all plus the adjustment and attempted to pay sales tax this time no negative and no need for adjustment.

no idea how the double payments were created. crazy land.

duplicated the problem today by adding another month of old data and adjusting the Opening Balance Equity.

first i added the adjustment, which made taax paying possible.

then by deleting all sales tax records and the journal entry for the adjustment the negative went away.

my guess is that adjusting the Opening Balance Equity and adding new sales receipts triggers a recomputtion of sales tax paid causing an over payment internal to the system.  at least i have a reliable workaround to clear it out completely now.

I imported my PayPal account which has a running balance that I use a debit card with.  I noticed QB did not create an opening balance equity entry.  I am now trying to create one, but am finding the instructions confusing.  It seems if I enter the real-life balance as a debit and as a credit, as instructed in step 8, these would essentially cancel each other out. Once I hit "save" in step 9, there are additional entry instructions but no indication as to where I am to enter the information. Are the steps after step 9 supposed to be an additional journal entry? Please clarify.  Thanks so much!

Thanks for joining us here in the thread, @CPR Kim.

You only need to follow step 1 to 9 to successfully create the journal entry.

Our Community Help Articles page contains resources, video tutorials, and tips to manage your company files. If you need more information, feel free to visit the site.

Additionally, here are some articles to help you in the future:

• Reverse or delete a journal entry in QuickBooks Online
• How to apply a journal entry credit to an invoice
• Undo or remove transactions from reconciliations in QuickBooks Online
• Void or delete transactions in QuickBooks Online
  
  

The Community is open 24/7 if you need help with your QuickBooks Online (QBO) concerns. Keep safe and have a good one!

Can you please explain, how to perform the same functions in QB Desktop- Accountant premier version?

How should I do the same in QB Desktop Premier version?

Thank you for responding in this thread, Taj007.

Let me guide you in changing the opening balance in QuickBooks Desktop.

You can change the opening balance by editing the account in your chart of accounts.

Here's how:

1. Go to List in the top menu bar.
2. Choose Chart of Accounts.
3. Right-click on the account, then select Edit Account.
4. Tap the button for Change Opening Balance.
   

Also, make sure to check the date and opening balance on your bank statement. Here's an article for more information: Enter opening balances for accounts in QuickBooks Desktop.

If this is your first time reconciling the account, you may check out this link to help you fix beginning balance issues in QuickBooks Desktop.

Let me know if you still have follow-up questions or other concerns about opening balance in QBDT. I'd be glad to help. Have a nice day!

I tried to change the "date" for opening balance of long-term liability account. I got warning message that the account had already been reconciled and a change may result in out-of-balance condition. I mistakenly entered 2022 instead of 2021. Will QuickBooks re-reconcile the liability account (didn't realize that it reconciled the account in the first place).?

We appreciate you for joining the thread, @Questionable.

I'm here to help you reconcile your account. Since your opening balance of the long-term liability account had been reconciled, you'll need to undo the reconciliation and correct the date and year. 

To undo reconciliation in batch, I'll recommend reaching out to your accountant to perform it. You can also manually undo the reconciliation.

Here's how:

1. Go to Bookkeeping or Accounting, then select Chart of accounts 
2. Find the account that has the reconciled transaction. Then select View register.
3. Find the transaction. If the transaction is reconciled, you’ll see an “R” in the checkmark ✔ column.
4. Select the transaction to expand the view.
5. In the checkmark ✔ column, select the box with the “R” until the box is blank. This removes the transaction from the reconciliation.
6. Select Save.
7. Close the account register.

Once done, we'll reconcile again your liability account with the correct year. You can follow the steps below.

1. Go to Accounting and select the Reconcile tab.
2. Select the bank account from the Account drop-down list,
3. Click the Start Reconciliation button.
4. From the upper right-hand corner, click Edit info.
   
5. Choose the correct reconciliation year date from there.
   
6. Tap in Save.

If you want to know the amount of your QuickBooks account matches your real-life bank and credit card statements, feel free to read this article: Learn the reconcile workflow in QuickBooks.

For additional questions about reconciliation, never hesitate to reply to this post. Keeps safe and have a good one!