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mhelemish
December 28, 2023
Question

QBO in a Mess recommendation and advice

  • December 28, 2023
  • 1 reply
  • 0 views

Hi Professionals, my client books is in a mess, bank and credit cards are not reconciled and in case reconciled the opening balance is mess up on the following months. sometimes two registers for one bank account. no description for the transactions or attachments with bills, improper classification. equity is mixed between personal and business. this mess is for than two years. I agreed with my client to open a new account for 2024 to save our time but the issue what should the open balance in the new QBO especially for BS accounts. My client is accrual basis. I recommended to take the end balance as of end of Dec. in all banks and credit cards statements and consider it the beg balance.

1 reply

MJoy_D
MJoy_D
December 28, 2023

Thank you for posting here in the Community, @mhelemish.

 

I can share some information about opening balances that you can set in your accounts.

When you create a new account in QuickBooks, you'll be prompted to select a day to start tracking transactions. Once you have chosen the day, you'll need to enter the balance of your actual bank account for that day. This amount, along with the selected start date, will determine the account's opening balance.

 

In the meantime, here's how you can edit the opening balance of your chart of accounts to reconcile your accounts:

 

  1. Go to the Gear icon (⚙) and select Chart of accounts.
  2. Find and open the account.
  3. Search the account register for the opening balance entry. It should be labeled Opening Balance Equity with Opening Balance in the Memo column.
  4. Check the balance of the account for the date you want to use for the opening balance in QuickBooks.
  5. Edit the opening balance so the date and amount match your bank records for the day you choose.

 

Once done, you can start reconciling your accounts. If you come across any problems while reconciling your account for the first time in QuickBooks Online, you can fix them by following these steps: Fix issues the first time you reconcile an account in QuickBooks Online. 

 

However, if you have already reconciled the account previously, then you should use the same steps to address any issues: Fix issues for accounts you've reconciled in the past in QuickBooks Online. 

 

Let me know if you need further help reconciling your accounts. I'm always here to assist. Have a wonderful day!

M
mhelemishAuthor
December 29, 2023

Thanks for the clarification, however, my question is not only for banks, it's for all BS accounts. most of the BS accounts are in a mess. So, in terms of double-entry, what will be the impact if I entered a balance of $5ok? in AR, which account will be increased? Equity, RE, or Sales? That's just an example of BS accounts.

I am thinking of creating an Excel sheet first with my client to stand out with reasonable balances. I appreciate your quick response.

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