With the utilization of QuickBooks accounting software, you can keep track of accounts expenses and payroll without much trouble. Its advanced features are one of the reasons why it is highly preferred accounting software by the small and mid-sized companies. However, before you get started with your QuickBooks account, it is important to record opening balance in QuickBooks. Here, we have explained all the information related to opening balance in QuickBooks. Just stay tuned, till the end of the article.
Wondering how to create opening balance in QuickBooks? To get the answers of all such queries, we would suggest you to get in touch with our experts by giving us a call on our Toll-Free Number 855-856-0053.
What Is Meant By Opening Balance Equity Account?
Open balance equity is an account that QuickBooks generates on its own after you have created a company file. Alternatively, you may also say that it is an offsetting entry that is used while entering account balance into your QuickBooks accounting software. It is comparable to Retained Earnings or Owner Capital, an equity account. The Open Balance Equity account is essentially a “plug” account (basic accounting debits = credits) used by QuickBooks to balance a transaction. For two reasons: starting account balances or forced changes, QuickBooks will enter a balance into the Open Balance Equity account.
How To Create A New Opening Balance For Your Account?
You can proceed with the below-given steps to enter opening balance equity in QuickBooks as a credit card or bank account.
Bank or Credit Card Accounts:
Go to the Company menu and select Chart of Accounts.
Right-click anywhere within the Chart of Accounts and select New.
For Account Ty
pe, select Credit card or Bank and proceed with the steps in the Add New Account screen:
Make sure to enter relevant information in the required field and press the Enter key.
It will display the Enter Opening Balance option even after the account is set up if no transaction record exists.
Once you have entered the transactions, you will see “Adjust Opening Balance” instead of entering the opening balance option.
Enter the Ending Date as well as Ending Balance before entering the QB Start Date from the last received statement and then, click OK.
At last, click on Save followed by Close.
If you have any outstanding credit card or bank charges, you have to pay fo
r them in order for the potential correct reconciliation to take place.
Wrapping It Up!
We hope the steps listed in this blog would have helped you record opening balance in QuickBooks without much trouble. However, if you get stuck and need any further assistance, we would suggest you to get in touch with our experts by giving us a call on Asquare Cloud Hosting Helpline Number at 855-856-0053.