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XL_Velo
April 21, 2021
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Opening Balance Entered Twice

  • April 21, 2021
  • 1 reply
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Hello, I'm trying to reconcile my credit card account for the first time and noticed that my opening balance was incorrect. I followed the steps to manually enter an opening balance of zero (the card had no balance when we opened the business). I tried to reconcile again, but the amount was still wrong. I ran a report and can now see there is another transaction (listed as a Credit Card Expense) showing an opening balance of $16,698.86. I believe this was the balance on the card when I imported all of my transactions into QBO. All of the other transactions look correct, but that particular transaction is causing the credit card balance to be about 30K, when it's actually closer to 15K. 

 

Can I edit or remove that transaction so it stops doubling my balance without messing anything else up? If edit, can you please provide steps to change it to be my opening balance entry? Or how I can just zero it out since it's not an actual expense or charge? I've attached screenshots. Thank you so much.

Best answer by LieraMarie_A

Thank you for sharing your concern in such great detail, @XL_Velo.

 

When you reconcile an account for the first time, there's only one entry that's already reconciled. It's the opening balance entry. No other transactions should be reconciled. For credit card accounts, opening balances are entered as credit card expenses. Since this is a liability you owe to the credit card provider, it will show as a charge in the Chart of Accounts.

 

To check:

  1. Go to the Accounting menu, then select Chart of Accounts.
  2. Find the account on the list.
  3. Select View register to get more details.
  4. Search for the opening balance entry. It should have "Opening Balance Equity" in the Account column. 
  5. Take note of the date and balance.
  6. Review the checkmark column. There should have an R in the box.
  7. Check the rest of the transactions on the list. There should be a C or blank box in the checkmark column.
  8. If there's an R on any other transactions, select the transaction to expand the view.
  9. Select box in the checkmark column. Keep selecting it until the box is blank. Then select Save.

 

On the other hand, if this amount isn't included in your credit card statement, you have the option to delete it.

  1. Go back to your credit card register.
  2. Look for the opening balance entry.
  3. Select the transaction and choose Delete.
  4. Click Yes to confirm.

 

Once done, follow these steps to start reconciling:

  1. In QuickBooks Online, select the Gear icon and then select Reconcile. If you're reconciling for the first time, select Get Started first and then Let's do it.
  2. From the Account drop-down menu, select the account you want to reconcile. Make sure it's the same one on your statement.
  3. Check the Last statement ending date. Make sure your bank statement starts the day after your last reconciliation.
  4. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your bank statement. Here’s what to do if they don't match.
  5. Enter the Ending balance and Ending date as they're written on your bank statement. Some banks call the ending balance a "new balance."
  6. When you're ready to start, select Start reconciling.
  7. From there, you'll have to mark the transactions that appear on your statement.
  8. Once done, the difference between your statement and QuickBooks should be $0.00.
  9. Select Finish now and then select Done. 

 

To learn more about the reconciliation workflow in QuickBooks, you can refer to the articles below. It contains complete information to keep your accounts accurate:

 

Please let me know how it goes. I'm determined to help you fix this beginning balance issue. Have a good one!

1 reply

LieraMarie_A
LieraMarie_AAnswer
April 22, 2021

Thank you for sharing your concern in such great detail, @XL_Velo.

 

When you reconcile an account for the first time, there's only one entry that's already reconciled. It's the opening balance entry. No other transactions should be reconciled. For credit card accounts, opening balances are entered as credit card expenses. Since this is a liability you owe to the credit card provider, it will show as a charge in the Chart of Accounts.

 

To check:

  1. Go to the Accounting menu, then select Chart of Accounts.
  2. Find the account on the list.
  3. Select View register to get more details.
  4. Search for the opening balance entry. It should have "Opening Balance Equity" in the Account column. 
  5. Take note of the date and balance.
  6. Review the checkmark column. There should have an R in the box.
  7. Check the rest of the transactions on the list. There should be a C or blank box in the checkmark column.
  8. If there's an R on any other transactions, select the transaction to expand the view.
  9. Select box in the checkmark column. Keep selecting it until the box is blank. Then select Save.

 

On the other hand, if this amount isn't included in your credit card statement, you have the option to delete it.

  1. Go back to your credit card register.
  2. Look for the opening balance entry.
  3. Select the transaction and choose Delete.
  4. Click Yes to confirm.

 

Once done, follow these steps to start reconciling:

  1. In QuickBooks Online, select the Gear icon and then select Reconcile. If you're reconciling for the first time, select Get Started first and then Let's do it.
  2. From the Account drop-down menu, select the account you want to reconcile. Make sure it's the same one on your statement.
  3. Check the Last statement ending date. Make sure your bank statement starts the day after your last reconciliation.
  4. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your bank statement. Here’s what to do if they don't match.
  5. Enter the Ending balance and Ending date as they're written on your bank statement. Some banks call the ending balance a "new balance."
  6. When you're ready to start, select Start reconciling.
  7. From there, you'll have to mark the transactions that appear on your statement.
  8. Once done, the difference between your statement and QuickBooks should be $0.00.
  9. Select Finish now and then select Done. 

 

To learn more about the reconciliation workflow in QuickBooks, you can refer to the articles below. It contains complete information to keep your accounts accurate:

 

Please let me know how it goes. I'm determined to help you fix this beginning balance issue. Have a good one!

X
XL_VeloAuthor
April 22, 2021

Thank you, this worked and my balances matched. I have a follow-up question though. We have some personal charges on that same credit card account that I wanted to exclude, but per this article (listed as #1 below), excluding the personal transactions would make it hard to reconcile your account, so I followed the suggested steps in article (#2 below) to make an equity account for those transactions. 

 

Upon trying to reconcile the first month, the difference is exactly the amount of the transactions that I categorized into the equity account. I can't move onto the next month now because the ending balance doesn't match. It seems the end result of excluding them or categorizing them into the equity account is the same. How do I fix this and get to $0?

 

Thank you again.

JasroV
JasroV
April 22, 2021

I appreciate your prompt reply, @XL_Velo.

 

I want to make sure I’ll be able to provide you the right information to get you on the right track. Can share with me the article you’re referring to? Any additional information can help us narrow things down.

 

Additionally, to ensure the accuracy of your accounts, I recommend working with your accountant for guidance. They’ll be able to provide you their expert advice on how to categorize those transactions to the correct account. 

 

If you’re not affiliated with one, you can visit our ProAdvisor page and we’ll help you find one from there.

 

Once you’re all set, you might want to check this article for guidance in reconciling your accounts. This provides complete details in matching your bank balance and QuickBooks balance efficiently: Reconcile an Account in QuickBooks Online.

 

In case you have any other follow-up questions about reconciling your QuickBooks, you can always get back to me in this thread. I’ll be around ready to help you. Have a good one!

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