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Kalli T
August 17, 2022
Question

Opening Balance Equity

  • August 17, 2022
  • 2 replies
  • 0 views

Hello, 

 

We started using Quickbooks Online in the middle of our fiscal year; therefore, we were using two accounting systems. I would now like to bring my Balance Sheet balances from our previous system over Quickbooks which we have been using throughout. 

 

I'm struggling because it seems like I need to do a journal entry to get my balances brought over to Quickbooks but then that will leave a balance in my Opening Balance Equity Account. Can I do the journal entry and then remove the balance from the Opening Balance Equity Account?

 

Is there another, better way to tackle this? 

2 replies

A
Alex M
August 17, 2022

Hi there Kalli T,

 

It's vital that all your accounts have the correct balances so your books can be accurate. QuickBooks Online is a great tool able to help you keep track of your transactions to see the financials of your company. I can point you in the right direction for assistance.

 

In order to know which accounts you should be affecting and if there is another more effective way than using a journal entry, I recommend speaking to your accountant. they'll be able to assist in making the entries necessary for your balances to include the missing totals so your books can be accurate. You can invite your accountant to your books in the My accountant tab. There's also a Find a pro to help button in this section that can help you find a local accountant that has experience with QuickBooks Online.

 

If you have any other questions, feel free to reach out here.

K
Kalli TAuthor
August 18, 2022

Hi Alex,

 

I know which accounts I need to enter the opening balance for, but I am confused on how best to do it. I've done some research and it looks like the recommended approach is to do a journal entry with the offset to Opening Balance Equity. 

 

My issue with this is what then happens to the balance in "Opening Balance Equity"? I don't want anything to be in that account if all of my other accounts are now correct with their opening balances. 

 

Thanks, 

A
Alex M
August 18, 2022

Hello again Kalli T,

 

In order to know what you should be doing with any money left over in opening balance equity after adjusting all other opening balances using journal entries, you'd need to speak to your accountant, as they'll be able to analyze your books with you to be able to assist you in making it all balance properly. You can invite your accountant to your account to give them a view of your books using the steps provided in my last response.

 

If you have any other questions, feel free to reach out here.

Fiat Lux - ASIA
Fiat Lux - ASIA
August 19, 2022
@Kalli T wrote:

Is there another, better way to tackle this? 

 

@Kalli T 

Consider to purchase a 3rd party service to convert data from your old accounting app.

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