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K
KaisODWS
January 20, 2022
Question

Why do the bank accounts have a balance forwards and how do I adjust it? I am setting up a new company. Very new to Quickbooks online

  • January 20, 2022
  • 2 replies
  • 0 views
I have not entered the balance forward journal entry yet. Moving from another system to Quickbooks. Yet there is a beginning balance showing for the bank accounts

2 replies

McBrideBookkeeping
McBrideBookkeeping
January 20, 2022
Hey Kais,

That is likely a product of linking your bank account through the banking/transactions screen.

In order to make things balance QBO brings in the opening balance at that time and posts it to an account called "Opening Balance Equity"

Have a look for this account in your Chart of Accounts and I bet you will find the 'offending' balance entry there. Simply delete the entry to set your account starting balance back to $0.

Let me know if this works and don't forget to mark your question solved!

Thanks

McBride Bookkeeping
T
Trish_T
January 20, 2022

Hi KaisODWS,

 

Thanks for reaching out here.  Your banking is a vital part of your business and it's important that your on the right track with your work.  I'd be happy to provide more information so you can reach your QuickBooks goals with confidence!

 

It's great to see that information has been provided by McBride Bookkeeping and they're on the mark!  QuickBooks Online tracks your opening balances in an Opening Balance Equity account.  This ensures the balance of your real-life account matches with QuickBooks, making it easier to track moving forward and makes reconciling your account a breeze!

 

For your reference, here's a helpful article on how an opening balance works.

 

Please don't hesitate to reach back out with any other questions.  We'd be glad to assist!

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