Adding an opening balance for a bank account in QuickBooks Online is essential for accurate financial records. Let me guide you through the process, @MRU.
We can create a journal entry since you've already made a bank account without entering an opening balance.
Before doing so, check your account register and ensure that you don't have an opening balance:
- Go to Transactions and select Chart of Accounts.
- Find the account and select Account History from the Action column.
- Look for an opening balance entry. The Payee Account column should show the Opening Balance Equity, and the Memo column should show the Opening Balance.
If you don't find an opening balance, note down the date and amount of the oldest transaction in the account.
Now, let's create a journal entry:
- Select + New.
- Choose a Journal entry.
- Enter a date earlier than the oldest transaction in the account as the opening balance date.
- Select the account for the opening balance in the first row under the Account column.
- Add a note in the Description field for reference.
- In the second row, under the Account column, choose Opening Balance Equity.
- Use your bank statements to enter the opening balance. Enter the account balance for the chosen date, and ensure to enter both a debit and a credit to maintain accuracy.
- For different types of accounts, follow these guidelines:
- For Asset and Expense Accounts, enter the opening balance in the Debit column in the first row, then enter the same amount in the Credit column in the second row.
- For Liability, Equity, and Income Accounts, enter the opening balance in the Credit column in the first row, then enter the same amount in the Debit column in the second row.
- For Accounts Payable and Accounts Receivable, adjust the opening balance based on whether it increases or decreases the balance.
- Once done, select Save and Close.
For further reference about entering an opening balance, please check these articles:
Moreover, if you haven't reconciled the account yet, you'll need to reconcile the journal entry to prevent it from affecting future reconciliations:
- Go to Transactions and select Chart of Accounts.
- Find the account, then choose Account History from the Action column.
- Locate the journal entry you created and select it to expand the view.
- Select the box in the tick column until you see an R, which reconciles the journal entry.
- Click Save.
Feel free to reach out if you need further assistance with your opening balance or any other QuickBooks-related concerns. Keep safe.
