QuickBooks when initially setup asks you to setup your business assets and liabilities. But what if, you already have properties or balances from the previous year. How you will record this in your QuickBooks accounts. Well it can be done by creating a simple Equity account wherein you will put your opening balance. In order to create an owners equity account, just simply go through the following steps:
- Login to your account and navigate to Chart of accounts from the Lists menu.
- Now click on the Opening balance equity account.
- From there select Register button from the activities menu.
- Now you would need to enter the equity amount in the decrease column. This way you will send the amount to retained earnings account.
- If you have a positive balance then you can enter your balance in the increase side of the column.
If you are still not able to figure out why we use equity account and how to set up in QuickBooks then you can talk to our QuickBooks ProAdvisor. You can chat with them anytime of the day by calling our toll free helpline number.