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siska72
October 7, 2021
Question

Credit card balance

  • October 7, 2021
  • 1 reply
  • 0 views

Hi, I have a question.

I started to set up QBO for a new client.

I connected their business bank account and credit card account on QBO.

I am confused because of the credit card statement.

They want me to record the transaction from January .1st 2021.

When I create a credit card account, how can I put the opening balance amount for the credit card on the chart of accounts?

There is a previous statement balance amount on the January statement, but December and January transactions were mixed. 

 

Thanks

Leah

1 reply

H
Henock K
October 8, 2021

Hi siska72,
 

Having the opening balance is essential to make sure your books are correct. QuickBooks Online is a great program that allow you to enter the opening balance and reconcile your account in a simple way. I'll be glad to help you with this.

In QuickBooks, you can enter the opening balance of an existing account by using the Journal entry. By making this, you'll be able to choose the opening balance account and the bank account concerned. You can refer to the following steps to create a Journal entry.

  1. Select + New.
  2. Select Journal entry.
  3. On the first line from the Account dropdown, select the account you want to enter the opening balance for.
  4. On the second line from the Account dropdown, select Opening Balance Equity.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  6. Enter information in the memo section so you know why you made the journal entry.
  7. Select Save and new or Save and close.
     

Once saved, you'll need to mark this journal entry as reconciled in the chart of accounts to prevents it from showing up on a future reconciliation. I'll explain how.

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Find the account and select Account history from the Action column.
  4. Search for the journal entry you just created. Select it to expand the view.
  5. Select the box in the checkmark column until you see an R. This reconciles the journal entry.
  6. When you're done, select Save.


If If the opening balance for one of your accounts is wrong, you can edit it through the Account history for the account by following the steps on this article .

Feel free to reach out if you have any questions, I'll be happy to help.

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