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August 7, 2023
Question

I need to load my brought forward balance as at 1st of July 2022.How can these entries be entered?

  • August 7, 2023
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1 reply

KlentB
August 7, 2023

Thanks for checking out the Community space. I understand the importance of maintaining accurate books, stephen.

 

An opening balance refers to the value within an account as the accounting cycle begins. It's also commonly denoted as the brought forward amount from the prior period.

 

Are you trying to input the starting balance for a specific bank account, summarizing all transactions preceding it? If so, this can be accomplished using a journal entry. I'll show you how:

 

  1. Click the + New button.
  2. Select Journal entry.
  3. Enter the appropriate date.
  4. In the first row, pick the account where you want to input the starting amount.
  5. In the second row, select Opening Balance Equity or Retained profit balance forward.
  6. Enter the balance of your real-life account, then set the debits and credits based on the type of account you entered on the first line.
  7. Hit Save and close.

 

After that, let's head to the Chart of accounts and open the register holding the entry. Next, select the JE you just created to expand the view. Then, keep clicking the box in the Check column until you see an R.

 

On the other hand, if you're referring to carrying the balances when you close your books for a specific fiscal year, QuickBooks Online offers a feature that automates this process. This approach is designed to establish continuity of your financial records and facilitate a seamless transition from one accounting period to the next. 

 

Before diving, let's review and reconcile your accounts. Furthermore, don't forget to enter the outstanding invoicesexpenses, and payments. Once you're all set up and ready, here's how to do it:

 

  1. Click the Gear icon.
  2. Choose Accounts and settings.
  3. Head to the Advanced tab, then select the Edit icon in the Accounting section.
  4. Turn on the Close the books switch and enter the correct closing date (June 30, 2022).
  5. Select the Allow changes after viewing a warning and entering a password option from the dropdown menu as needed
  6. Hit Save and then Done.

 

Note that the procedures above can be tricky if you aren't familiar with accounting. To ensure adherence to standards and precise bookkeeping, I encourage coordinating with your accountant.

 

 Finally, here's an article that will help you track your company's total income and expenses from all previous years: View Retained Earnings account details.

 

If you need any further clarification or guidance throughout these processes, please don't hesitate to tag my name in your comments and posts. I'm here to ensure a smooth experience for you.