How to Create an Opening Balance using QuickBooks
Your small business can use QuickBooks accounting software to keep track of accounts, payroll and expenses. Before you begin using QuickBooks for your accounts, you need to create an opening balance. Take care when entering this data, as it can be difficult to change the initial opening balance once the new company file has been created.
Open the account you wish to enter an opening balance for. In QuickBooks, go to the Lists menu, select “Chart of Accounts” and select the account you wish to work on. This will open the new account’s register. If you don’t already have a register for this account, click on “Create New Register.” Name the account.
Double-check your balance before entering it. Examine the ending balance for the fiscal year or calendar year and deduct any outstanding checks.
Enter the start of your calendar or fiscal year. The default in this field is today’s date. This will need to be changed to the date of the beginning of the calendar or fiscal year for your company.
Leave the “Number” and “Payee” fields blank and scroll down to the field for “Opening Account Balance.”
Enter the opening account balance. Double-check your entry. If this opening balance is for a bank account, place this entry in the “Deposit” field. For equity accounts, use the “Increase” field.
Highlight the “Account Type” field to open a drop-down menu. Select “Opening Bal Equity” from the drop-down menu.
Click the “Record” button. This will finalize your entry and create a new opening balance for your account.