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GrumpyMuso
April 22, 2018
Question

Inaccurate bank balance

  • April 22, 2018
  • 1 reply
  • 0 views

Hi,

 

- I started using Quickbooks Online at the start of this financial year

- I imported my bank balance (hypothetical number: £100k) correctly

- My VAT return period runs Feb / Mar / Apr

- I need to submit a VAT return for that period

- I've inputted an invoice and marked it as paid (hypotherical number: £1,000) and so that the VAT I'm paying in this quarter is accurate

- My bank balance in Quickbooks is now out by (hypothetical number) £1,000

- How do I correct this? Why has Quickbooks added that amount to my Quickbooks bank balance when it knows the balance was correct as of 01/04/18

    1 reply

    G
    GrumpyMusoAuthor
    April 22, 2018

    Just correcting something:

     

    - I've inputted an invoice created and paid in Feb, prior to my conversion date, and marked it correctly as paid (hypotherical number: £1,000) and so that the VAT I'm paying in this quarter is accurate

    A
    Anonymous
    April 23, 2018

    Hi GrumpyMuso,

     

    I can certainly help you with this. The reason QuickBooks Online has added this amount to your bank balance is due to the opening balance of your bank already including this figure.

     

    You have created a bank account within QBO as of a given date with a given opening balance. This will have included the invoice amount.

     

    When you have then created an invoice and marked it as paid after this opening balance has been entered, QBO has added this amount onto the bank balance.

     

    If you need this invoice to occur within the VAT period, but not increase the bank balance, you would need to amend the opening balance accordingly to account for the addition of the payment received.

     

    Let me know if you have any further queries.

    G
    GrumpyMusoAuthor
    April 23, 2018

    Thanks for your reply. Yes, that makes sense. So, what I should have done is created and marked the invoice as paid first before entering the opening bank balance.

     

    I guess the problem is then the opening bank balance in QuickBooks and the correct opening bank balance won't match. But at least there's a valid explanation.

     

    Thanks.

     

     

     

     

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