Automatic reversing journal entry?
How do I have QB automatically create a reversing entry for all the balance sheet account balances?
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cNZiPMvb0r4yUOacwZ5xHE
02/10/12 11:30am PST
Viewed by asker 02/17/12 1:51pm PST
Viewed by asker 02/17/12 1:51pm PST
8 Replies
qbteachmt
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Intuit Moderator
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02/11/12 11:39am PST
QB Pro does not have this function. You have to buy a higher edition of QB.
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02/14/12 10:06am PST
OK. Do you know which version would have that feature? Is QB Accountant the one?
qbteachmt
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Intuit Moderator
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02/14/12 4:42pm PST
You can compare the products here:
http://quickbooks.intuit.com/product/accounting-software/quickbooks-comparison-chart.jsp
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02/15/12 10:35am PST
I reviewed the comparison charts and chatted with a sales support chatperson, but could not find any version that has this feature. Has anyone done this with any version of QB?
qbteachmt
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Intuit Moderator
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02/15/12 11:38am PST
I misunderstood. I thought you wanted QB to reverse the entries for accounts; not the balance in an account.
There is no such tool. Why would you even want to do this? Where are you "reversing" them to? Reversing one is going to impact another.
Perhaps what you want to accomplish is not done the way you are describing it.
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02/15/12 12:43pm PST
The task of reversing the balances in the balance sheet accounts is commonly used by professional accountants when doing annual accounting and/or tax returns for business clients. The client's prior year books are closed out. Then the prior year balance sheet accounts are reversed so that the balances are zeroed out. Then, the current year balances are entered. The result is that you have a complete trial balance of accounts showing unadjusted client balances of assets, liabilitites, equity, income, and expenses. At this point, you can begin the process of reviewing and correcting the balances as needed. When you have completed the review, you can print the trial balance showing five columns: final prior year balances, unadjusted current year client balances, debit adjustments, credit adjustments, and adjusted current year balances. The adjusted balances are used to complete the tax return.
02/16/12 12:35pm PST
The solution
Instead of current year balances we regularly work with net changes for the current year. Most accounting softwares are capable of printing out balance sheets with prior year and current year balances and the difference, too. We punch in these differences for the balance sheet and the annual P&L for the income statement accounts. These balances match the unadjusted client balances if you recorded the prior year-end adjustments in the client's records. The nice about this method is that it works even if the prior year adjustments were not recorded.
Reka
qbteachmt
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Intuit Moderator
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02/17/12 1:04pm PST
Latest post
In QB you can run the reports based on dates and date ranges, to view the data for reporting. You also have Trial Balance and Adjusted Trial Balance reports.
I prepare the same reports you describe for a public audit. Changes in accounts are easily reported.
You can export the reports to Excel to see, evaluate, analyze, and compute data.
"The client's prior year books are closed out. "
QB does this, for Net Income.
"Then the prior year balance sheet accounts are reversed so that the balances are zeroed out. Then, the current year balances are entered. "
The data file should not be restarted like this. You need to let AP, AR, inventory and Payroll carry over. QB is not solely an accounting package. Everything in this paragraph also needs to be referenced to name and "items." You can't just adjust accounts. You will make a mess of the "management function" data in this file for your client.
You don't use the QB data as a worksheet. It is the real data.
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