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cathlene
Level 2

When I get a brand new credit card and add it to my chart of accounts, should my starting balance be zero?

 
Solved
Best answer January 30, 2021

Best Answers
MJoy_D
Moderator

When I get a brand new credit card and add it to my chart of accounts, should my starting balance be zero?

Let me share some information about starting balance for your credit card account, @cathlene.

 

It depends. The beginning balance amount should match what's on your bank statement for the same start day.

 

You can add an opening balance by creating a journal entry. Here's how:

 

  1. Go to the + New button and select Journal entry.
  2. Enter a date that comes before the oldest transaction in your credit card account.
  3. On the first line from the Account dropdown, select the account you want to enter the opening balance for.
  4. On the second line from the Account dropdown, select Opening Balance Equity.
  5. Enter the debits and credits based on the type of account you entered on the first line. I also suggest consulting an accountant for guidance with the best accounts to use.
  6. Click on Save once you're done.

 

Check these articles for more information:

 

Here's also a guide in reconciling your credit card accounts to make sure that it matches with your statements: Reconcile an account in QuickBooks Online

 

If you have any other questions about adding or editing your starting balance  feel free to comment below. I'm always here to help you. Have a great rest of the day!

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2 Comments 2
MJoy_D
Moderator

When I get a brand new credit card and add it to my chart of accounts, should my starting balance be zero?

Let me share some information about starting balance for your credit card account, @cathlene.

 

It depends. The beginning balance amount should match what's on your bank statement for the same start day.

 

You can add an opening balance by creating a journal entry. Here's how:

 

  1. Go to the + New button and select Journal entry.
  2. Enter a date that comes before the oldest transaction in your credit card account.
  3. On the first line from the Account dropdown, select the account you want to enter the opening balance for.
  4. On the second line from the Account dropdown, select Opening Balance Equity.
  5. Enter the debits and credits based on the type of account you entered on the first line. I also suggest consulting an accountant for guidance with the best accounts to use.
  6. Click on Save once you're done.

 

Check these articles for more information:

 

Here's also a guide in reconciling your credit card accounts to make sure that it matches with your statements: Reconcile an account in QuickBooks Online

 

If you have any other questions about adding or editing your starting balance  feel free to comment below. I'm always here to help you. Have a great rest of the day!

cathlene
Level 2

When I get a brand new credit card and add it to my chart of accounts, should my starting balance be zero?

Thank you MaryJoyD!

 

I appreciate the time you took to answer my question.

It was very helpful, and I was able to accurately get my CC off and running.

 

Thank you!

Cathlene

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