Learn how to add, enter or edit opening Balance in QuickBooks?
If defined in a very way simpler way, opening balance can be termed as the amount of money that is found to be in your company’s account during the start of the financial year or period.
This entry can be termed as the first entry which is normally done during the company’s start of a new financial year after the end of the previous one.
In QuickBooks, you can add, enter and edit your opening balances and save a lot of time and effort at the same time. This article will help you to have a detailed guide on how to add, enter, or edit opening balance in QuickBooks.
What is Adding, Entering, or Editing of a Particular Opening Balance in QuickBooks?
At the time of creating a new account in QuickBooks, you would be able to choose a day from when you can henceforth track all of your company’s transactions. With this, you would be further able to insert the balance of your physical bank account of the day which you have chosen.
This is what is termed as the first, beginning point of the opening balance and collates all the transactions which have been recorded so far. Once you have entered the same amount in QuickBooks, you would find that the figures would be matching your bank records from the beginning.
This blog will help you to understand with a step-wise explanation on how to add, enter or edit opening balance in QuickBooks.
How to Add, Enter or Edit opening Balance in QuickBooks?
Before you heading ahead with understanding how to add, enter or edit a particular opening balance in QuickBooks, here are few important things that you must keep in mind.
- The dates which you would be entering for the timelines from when your company began, are indicative of the time-period from when you wish to start tracking the financial transactions in QuickBooks.
- Once you enter opening balances, the data recorded by the QuickBooks would be terms as Opening balance Equity and ensures you have a nice balance sheet for your business or company.
- At the end of every fiscal year, QuickBooks would be computing the profit or loss data and placed as equity which is known as Retained Earnings.
Steps to Enter Opening Balance in QuickBooks
Step 1: Tap Chart of Accounts located under Company.
Step 2: Press Right-Click and choose New.
Step 3: Select the account type which might be either a credit card or bank account.
Step 4: Insert your respective details by tapping the Add New Account.
Step 5: Select Enter Opening Balance (this option would be available when you haven’t inserted transaction; once inserted it would appear as Change Opening Balance) and hit OK.
Step 6: Finish the process by clicking on Save and Close.
Steps To Follow After Entering Opening Balance In QuickBooks
Step 1: Consider the ending balance fetched from your bank statement and choose to increase the figure with the help of any of the outstanding checks along with decreasing the figures simultaneously with any of the outstanding deposits.
Step 2: Insert the journal entry by debiting the credit or debit card and also include crediting of the opening balance equity.
Step 3: Tap on Make General Journal Entries located under the Company. Assign a date and insert the number of the journal entry.
Step 4: Select your debit or credit card under the Account column and insert the figure that was calculated as per the Debit Column.
Step 5: On the following line, tap on Account and select ‘Opening Balance Equity’ under the drop-down.
Step 6: Insert the amount calculated in the credit column.
Step 7: With the help of Opening Balance Equity, start creating deposits and checks and input all the awaited outstanding transactions.
Doing this, make the reconciliation available irrespective of any associative impact on the balance sheet prior to this. Consider reconciling opening balance journal entries against each account via a mini reconciliation process.
Once you have successfully entered the opening balance in QuickBooks, next you would be needing to edit it too.
Follow the steps that help you to edit the opening balance in QuickBooks, mentioned below:
Steps to Edit Opening Balance in QuickBooks
Step 1: Tap on Chart of Accounts which is located under the Lists.
Step 2: Double-tap the account which you are going to edit.
Step 3: Locate the opening balance transaction from the respective account register.
Step 4: If necessary, you might consider editing the date alongside the amount.
Step 5: Tap Record for saving the changes made.
Easy enough? Explaining the process associated with how to add, enter or edit a particular opening balance in QuickBooks, hope this article has made justice to your respective concerns and queries.
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What Transactions would I be able to enter with respect to transactional Data of Customers or Vendors in QuickBooks?
Here are a few of the transactions that you would be able to enter with respect to transactional data of customers or vendors in QuickBooks:
Sales tax payments
Invoices and Sales Receipts
Customer payments and returns
Can I enter Income and Expense Accounts in QuickBooks?
No. On QuickBooks, you would not be able to insert balance for income and expense accounts since the balance of these accounts belongs to types of transactions that are entered as invoices, bills, and checks.