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J
JHB2022
January 5, 2022
Question

Moving a checking account from one company file to a new one - then zero balance the old account

  • January 5, 2022
  • 1 reply
  • 0 views

We have been doing bookkeeping for a small group who is not a true organization and they needed us just "to keep their books". I'm trying to start a new QB Company file for them -- and take their checkbook out of our company file. I built a new company file for them and rebuilt their financial transactions.  Now, how do I take their "checking account" off of our company books to get a zero balance?  Thanks for your help!

1 reply

JessT
JessT
January 5, 2022

Hi there, JHB2022!

 

It's great to see you around! I'm happy to help you with your client's register. But first, please be sure to back you your company file before making changes to keep a copy of your current data.

 

You'll want to delete each transaction to zero out the account balance or keep them and just add an adjusting entry (journal entry) to offset the balance. You can check out about making journal entries in QuickBooks Desktop.

 

I'm not licensed to give advice about the content of the entry, but I’m confident it will be just a piece of cake for you because you’re doing bookkeeping.

 

Let me know if you have other concerns with your client's register. I'm just around to lend a helping hand.

J
JHB2022Author
January 5, 2022

Thank you, JessT!  I appreciate your help.  We are good to keep the previous transactions, but would like to add an adjusting entry to zero out the balance of the checking account.  Might you be able to walk me thru that process?

R
RCV
January 5, 2022

Thanks for coming back, JHB2022. 

 

The Adjusting Entry box option is available in QuickBooks Desktop Enterprise and Accountant versions when creating a Make General Journal Entries. If you are using those versions, just follow the steps below to add an adjusting entry to zero out the balance of the checking account:

  1. Go to the Company menu and select Make General Journal Entries.
  2. Place a checkmark on the Adjusting Entry field. 
  3. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
  4. Press Save or Save & Close.

 

For the posting accounts, you'll need to apply, I'd suggest consulting your accountant about this one. If you're not using the versions that allow you to do adjusting entries, we can upgrade to the following editions if necessary. Just use these links for more information:

 

Otherwise, you might need to reach out to your accountant. They can do the adjusting entries on your behalf. They also have an option to toggle from one edition to the other. Here's how your accountant does this:

  1. Click File at the top menu and select Toggle to Another Edition.
  2. Select the Premier Edition and click Next.
  3. Click Toggle and wait for the program to switch to the other edition.

 

To run adjusting journal entries with the particular accounts used, please pull up the Transaction Detail by account. You can also determine the adjusting entry if there is a checkmark under the Adj column. Let me show you how:.

  1. Go to Reports.
  2. Select Accounting and Taxes.
  3. Choose Transaction Detail by Account.

 

Feel free to browse this link here if you need help with bank feeds and reconciling accounts. It'll route you to our general banking topics with articles. 

 

Drop a comment below if you have follow-up questions or concerns about creating journal entries. I'm more than happy to assist you. Take care and have a wonderful day ahead.

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