Sometimes, the opening balance of an account needs to be changed for a number of reasons. You can easily change the opening balance to ensure your books are accurate and up-to-date.
|Note: Talk to your accountant first before following the steps below.|
To change the account opening balance:
- Select the Gear icon then Chart of Accounts.
- Find the account name.
- Select the funnel beside Account history, then choose Run report.
- Under Report period, select the drop-down and choose All Dates.
- Select Run report.
- Find the deposit posted at the earliest date noted as Opening Balance in MEMO/DESCRIPTION.
- Choose the entry. This takes you to the Bank Deposit.
- Choose the dollar amount and/or date.
- Select Save.
If you did not enter any opening balance, you the following options:
- Make a deposit to your bank account and select Opening Balance Equity as the offset account.
- Create a journal entry that debits your bank account and credits Opening Balance Equity.
- Create a new account, enter an opening balance for it, and merge the existing account into it.
Perhaps the simplest solution is to create a new bank account with the correct opening balance and start date, and then merge the old bank account into the new bank account. It is critical that the existing bank account is merged into the new bank account. For instructions on how to do this, please see Merging accounts, vendors/suppliers, or customers.
When you connect QuickBooks Online with your bank account for the first time using Add Account you will be allowed to download transactions going back 90 days. This process will pull over all the transactions from the bank's website during that time period and enter an Opening Balance on your bank account which will also affect Opening Balance Equity. For more information on Opening Balance Equity, please see Opening Balance Equity.
This Opening Balance is the first entry on the bank register and by default, it is marked Reconciled. If you are going to enter historical transactions either by manual entry or by using WebConnect so your bank register entries go back farther than 90 days you will need to delete the Opening Balance Entry created by QuickBooks Online Banking Admin and enter the opening balance for the date you are starting your historical transactions using the method described above and then move forward with your data entry.