Thus it is very important to know how to correct opening balance in QuickBooks with your bank. QuickBooks accounting software is integrated with features to track inventory, business expenses, and client data.
Sometimes, when the bank balance showed is an incorrect balance, QuickBooks may present you with warnings and errors.
If there is an improper transaction input, missing debits, and credits, or an inaccurate opening balance, it may cause discrepancies between the actual bank balance and QuickBooks reports. Hence, it is important to correct when such situations occur.
To solve the issue, you have to adjust the opening balance when creating the accounts. You also have to alter the ending balance or make corrections to the totals if an incorrect transaction has been entered. When you resolve these issues, run the reconcile report to update the changes.
How to Correct Opening Balance in QuickBooks
The following steps provide you with a simple process to edit and reconcile the bank balance to reproduce the correct bank balance.
Step 1: Correct Opening Balance
- Go to the Company menu, and click on Make General Journal Entries.
- Give the correct date and unit of the opening balance, and then click on Save.
- Open the menu Banking and select Reconcile.
- Click on Account and drop down the menu, and point out the account that has an inaccurate opening balance.
- Click on the Statement Date, and select the date matching the journal entry created before.
- Then, click on the Ending Balance, and enter the ending balance likewise.
- Go to the section Deposits and Other Credits and click on Continue and then Journal Entry.
- Click on the Reconcile Now
Step 2: Correct the Ending Balance and Reconcile Accounts
- Go to the Banking menu and select Reconcile.
- Select Now drop-down menu and choose the account with the wrong ending balance or the transaction that needs to reconcile.
- Select the Ending Balance field and type in the accurate ending balance
- Click on Continue so that the registered balance is updated
- From the section Deposits and Other Credits, choose all the items matching the bank account statement.
- Click on the Reconcile Now, in case you have added up the transactions indifference of zero. If not, just click on Leave.
- Go to the Banking menu and click on Use Register.
- Click on Select Account and drop-down the menu, click on the account indicating incorrect balance, and then click on
- Select those items whose amount does not match the bank statement.
- If you want to change the amounts select Edit Deposit or if you want to eliminate the transaction select Delete Deposit.
- Type in the missing transactions in the bank register if any.
- Ensure that you use the right date of the deposit or payment that is missing according to the bank account statement.
- Go to the Window menu, and click on Reconcile – Account Name.
- Verify that the new item entered into the register is matching with the bank statement, and then click on Reconcile Now.
Following these steps, you will be able to know how to correct the opening balance in QuickBooks. However, if you still need additional service regarding this opening balance equity in QuickBooks then call QuickBooks Consultant Customer Care Number or mail us at [email protected]. You can also reach us via Live Chat Consultant available on our website. We provide the best services.