Welcome to the Community, hdel.
Accurate reconciliation is essential for keeping your financial records correct and your business stable.
To begin with, can you specify whether the incorrect balance is the opening or the ending balance? This will allow us to offer the most accurate solution to your concern.
If the opening balance is incorrect, you’ll need to locate the opening balance entry in the account register and compare it to your bank statement to confirm whether the balance matches.
Here’s how:
- Go to the Gear icon on the top right.
- Select Chart of Accounts.
- Locate the account where the opening balance is incorrect
- Click the View Register option from the dropdown menu under the Action column.
- Find the Opening balance equity entry and update the amount.
- Hit Save.
If there's no opening balance, note the date and amount of the oldest transaction in the account.
Once you have this information, follow the steps below to create a journal entry to enter the correct opening balance:
- Navigate to the + Create and select Journal Entry.
- Enter the date that comes before the oldest transaction in the account. This will serve as the opening balance date.
- In the Account dropdown menu in the first row, choose the account for which you want to record the opening balance.
- Use the Description field to add a note explaining the purpose of the journal entry (e.g., "Opening balance adjustment").
- In the second row under the Account dropdown, select Opening Balance Equity as the offset account.
- Enter the correct opening balance amount (from your bank statement) in the appropriate debit or credit column, depending on whether the account is an asset, liability, or equity account.
- Click Save and Close.
After creating the journal entry, reconcile it to ensure it does not show up in future reconciliations.
