Hello, Khurram1010. I'll share information about creating a journal entry (JE) for the Opening Balance Equity in QuickBooks Online. When you create a bank account, you'll have the option to enter an opening balance. It will automatically recorded in the Opening Balance Equity. If you didn't provide any when opening a bank account. Here's how to create a journal entry: Click the + New icon. Select Journal Entry. Enter a date that comes before the oldest transaction in the account. This will be the opening balance date. On the first row of the Account column, select the savings or checking account you want to enter the opening balance for. Enter the amount in the Debit column and add a note in the Description field to know what the journal entry is for. On the second line of the Account column, choose the Opening Balance Equity and enter the amount in the Credit column. Once done, hit Save and close. For your reference, you can read this article for more details: What to do if you didn't enter an opening balance in QuickBooks Online. I'm also adding the following resources below to guide you in entering and tracking sales transactions in QuickBooks Online: Create invoices in QuickBooks Online Create and send sales receipts in QuickBooks Online. Let me know if you need additional assistance with the process by commenting below. I'll be here to help you.

Question

What is the journal entry of opening balance equity in the quickbooks online

Forum|Forum|4 years ago
July 6, 2022
1 reply
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QuickBooks Online

G

Giovann_G

Moderator

Hello, Khurram1010.

I'll share information about creating a journal entry (JE) for the Opening Balance Equity in QuickBooks Online.

When you create a bank account, you'll have the option to enter an opening balance. It will automatically recorded in the Opening Balance Equity. If you didn't provide any when opening a bank account. Here's how to create a journal entry:

Click the + New icon.
Select Journal Entry.
Enter a date that comes before the oldest transaction in the account. This will be the opening balance date.
On the first row of the Account column, select the savings or checking account you want to enter the opening balance for.
Enter the amount in the Debit column and add a note in the Description field to know what the journal entry is for.
On the second line of the Account column, choose the Opening Balance Equity and enter the amount in the Credit column.
Once done, hit Save and close.

For your reference, you can read this article for more details: What to do if you didn't enter an opening balance in QuickBooks Online.

I'm also adding the following resources below to guide you in entering and tracking sales transactions in QuickBooks Online:

Let me know if you need additional assistance with the process by commenting below. I'll be here to help you.

S

Serenityruler

I don't know if this is something that has changed since this post in 2022. I did not set an opening balance equity. I connected my quickbooks to my bank account, and it seems to have set the opening balance equity based on the oldest bank balance, but the bank account is older than how far back it could pull data for. I downloaded CSV files from the bank and uploaded them to the quickbooks account, but I don't think there should be an opening balance equity. Our organization started with a loan from our sister organization. I assume that should be a liability. I haven't categorized it yet because I'm pretty new to this and hoping my supervisor at the sister organization helps with that. Can I just delete the opening balance equity account? Will that hurt anything?

Also, my bank balance is off by about how much the opening balance equity is. Is that why it's off? Will deleting it fix the bank balance? (It's not exact, but there are some transactions I still haven't categorized)

R

RhoiceW

QuickBooks Team

Hi there, Serenityruler. Let me provide additional information about deleting an opening account in QuickBooks Online (QBO).

Yes, you can delete the opening balance equity since you've started your company as a loan, but it's best to consult an accountant before deleting it. Your accountant will be the one to determine if this option will be suitable for resolving your challenges. If you don't have one, we can help you get one.

Please note that deleting the opening balance account will impact your overall account balance. Ensure that all transactions are correctly categorized according to the bank statement, including those related to the loan.

Here's how:

Go to the Gear icon, then select Chart of accounts.
Locate the Opening Balance Equity account. Then click View register.
Find the journal that contains an entry for opening balance.
Click it, then hit Delete to remove it.

Also, when connecting your bank account in QBO, the system will set it up if you're unable to add an opening balance.

In addition, you can refer to this article to learn how to categorize your bank transactions in QBO: Categorize online bank transactions in QBO.

Comment on the post if you still have concerns about your opening balance equity. I'm always here to help you.

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