You raised a good point about considering the SOURCE of the funds. In my case, the first deposit is a transfer from another account but it also included unearned income from customer advance deposits. For example, Transfer = $100,000, of which $65,000 customer advance deps. Is i use the SPLIT feature, which Account do I credit the $35,000? Beginning Equity Balance? Thanks for the guidance.
@@QbuniversityOrg Yes, it was personal money. This makes it an owner equity, right? Thanks for the quick response. Your tutorials are clear and concise.
I am trying to set up Quickbooks online for my daughter. She sells stuff on Ebay and has not had any bookkeeping done at all. She just buys products and resells them. The year is half gone so not sure how to get started with Quickbooks. From your video I am guessing I would start with a $0 ballance and start entering sales from the day her business started? Then I would go into paypal or Ebay and start recording sales, fees and expenses?
I’m in the process of moving our organization to QB from Sage. We only subscribed to the basic subscription so I don’t have access to Supplier Credit function. What will my Journal entry be to enter a supplier credit in my opening balance?
Thanks so much the video. The best explanation I've seen thus far! Please forgive me if I'm asking a question that you may have already answered. I would like to start entering transactions today, but I want to go back and enter beginning with the balance as of 01/01/19. Do I just follow the directions mentioned in the video or does it have to entered differently since we are now in April. Also do I need to connect the bank account to quickbooks in order to reconcile?
Thanks! You can by all means start entering as of today, and also go back to 1/1/19 and start entering. Accounts may not necessarily reconcile correctly until you get it all entered, but it should be fine. And you so not need to use the bank feeds to reconcile. You can enter everything by hand instead if you choose
@@QbuniversityOrg Ok great thank you! Apparently I'm behind a year and meant to say 01/01/2020 :) Just one more question. Because I'm starting further back do I enter the beginning balance by hand into the check register as the video instructs or is just the transactions?
After 3 years in business ,I just start using QBO 01/01/2021 with balance of $5090.00,How can I put this in the QBO Dr checking account and Credit Owner Equity with Journal entry?
What can be done about o/s bank items carried over from prior to going on qb? They are not in the register to 'clear' when doing the bank reconciliation....TIA love your videos!
Thanks! Hmm, not sure how you could have outstanding items on the bank rec but they are not in the register? Sounds like they are really old? If they are really old, I would do a journal entry in QB adding or subtracting them from the checking account (depending on if they are OS deposits or checks) and make the offset to the journal entry Other Expense or something, then clear them both out on the next recon
I'm switching from Sage 50 CA come January 1st when our fiscal year ends. Do you have any advice to make this transition easier. Last year I tried doing this and Quickbooks was suppose to take my data from sage and transfer it over but after 3 weeks and no luck I decided to stay with Sage. I'm ready to make the switch and just do it manually. Thanks so much!
I would fir sure make sure the books are closed out, reconciled, etc in Sage prior to the switch over. Are you going to be importing info to QB from Sage or just simply starting to use QB as of 1/1?
Hi there, Is there a way for me to import all the prior year balances into quickbooks? I have a new client that started with me this month and I only have the trial balance as at the start of the month in excel format. What would be the best way to enter these 'opening balances' into Quickbooks?
Hello! Is there a way to transfer money to a petty cash account that i use to have in a old business account to a new business account? And how would I do it?
Do you mean within Quickbooks? If so you can simply hit the + sign and choose Transfer, then transfer from the business account to the Petty Cash account you set up
We just opened a new business. We used personal funds to open the checking account. The way this was set up for me is credit to Personal Loan and Debit to Checking account which does not populate a beginning balance when I attempt to reconcile. Any advice on how to correct this? Thank you!
I see where you said to make a journal entry for opening balances but what acct do I show it from and too? I have the chart of acct set up as Centennial Bank-Shop Loan and it has a 96k balance due. I apparently set this up wrong to begin with because it shows up under my opening balance equity.
Morgan Collins the “plug” so to speak would be to an Equity account. Don’t use Opening Balance Equity though (its an account that QB uses to plug). So for example if the entry was to record $10,000 of cash in a checking account, the debit would be to Checking and the credit would be to Equity
This loan is older than the amount of time that I've been working for this business. How do I fix this without it messing up my checking balance? Do I need to show a transfer from the bank to my bank acct then move it to the loan liability acct? I've tried a few different ways but it keeps adding the amount to my checking acct.
Morgan Collins in all honesty, I don’t know all the specifics of the business and how it was originally recorded, but I would probably just re-classify it to shareholder distributions to clean up the balance sheet and move on.
Yeah those are special situations. Generally I advise people to enter the actual invoices for AR and actual bills for AP so that you can track individual customer account or vendor balances.
Thank you so much for the tutorials. I have extracted some data( customer lists, vendor lists, inventory assembly and inventory parts) from my company in Quickbooks. Currently i need to set up a new company profile and import the data into the new company profile in Quickbooks. I have tried several methods but no avail.Can you please help me out. Thanks
The Quickbooks University I really appreciate you time. Yes, I’m starting a new company file, however, I don’t need all the information in the back up. I need just the inventory data and vendor list. A lot of wrong entries were made. I wanted to pass journal entries to correct the data but it’s would only create another mess. So I intend to create a new file with the correct balances. I have some payables and inventory information I need to bring into the new file. Please do you get me now?
Let’s say I made a purchase of a computer and it was billed. I want to put it in a separate asset acct to track the depreciation. I billed the computer and placed it in the asset acct, but now the opening balance equity also reflects as if I used my own equity, but I purchased it from a vendor on credit. How do I reflect the opening balance when it’s not my equity but it’s on credit? Advice would be appreciated
@@menorahtransportllc2807 you would enter this like a credit card almost or a regular line of credit - you would have to set this up as a liability account in your books and show that the balance goes up as you purchase things on it, and down as you make payments
@@QbuniversityOrg So what about the asset side of it after I made the liability part of it ? How do I stop it from having opening balance equity , like it’s my equity?
I have a client that is just starting to use QB Online and they've been doing everything in Excel. How do I put in their opening balance as of Jan. 1, 2018? So that everything flows correctly for 2019.
@@QbuniversityOrg thank you so much for your help. I knew I had to do some type of journal entry but wasn't quite sure where to start. I'm also going to join the university. I like the plan I see.
Our HOA had an old checking account that had been forgotten for years and never was included in QBD. They have since transferred the remaining balance into the checking account and closed the old account out. My question is how do we enter this into QBD? I don't see an equity account in the subscription other than Opening balance equity and retained earnings. If I put it to opening balance equity, it will never leave that area, or I don't know how to get rid of it. I am not sure how to bring this money in as it wasn't income, it was just an old account that is now closed. Do I create an Owner's Equity account?
I have a question I created a chart of accounts and added name vendor with opening balance and my chart of accounts creates a double account making it negative. How can I fix that ?
@@QbuniversityOrg i want to thank you in advance for this amazing help. Also, to make it a little more clear it a vehicle loan. Where would you recommend me to add the loan amount? Is it recommended in the vendor section or in chart of accounts.
I have a farm business and am moving from Sage to Quickbooks online. I am wanting to enter all my year end totals but don't want it effecting my partner's equity since if we sell the business at one point, personal or partner equity is non-taxable (From my understanding) How do I enter the year end data without it effecting equity amounts?
In theory it shouldn't because all you are doing is entering the ending balance sheet from Sage as your opening balance sheet in QBO. The tricky part is making sure you enter all those ending balances the right way. For example, entering inidividual invoices for AR, entering bills for AP and entering all your outstanding checks so they can clear when you reconcile. What I would check first is if you can import your data from Sage over to QBO. This would make it much easier.
@@QbuniversityOrg It apparently can be done but I can't seem to get ahold of anyone to actually help me do it. I will try to do the online chat again and see if I can get somewhere. Thanks. Would you recommend using Journal Entries for it, if I can't get anywhere with them?
@@deannalambert5394 yeah most definitely I would use journal entries. Have you looked at these instructions: quickbooks.intuit.com/learn-support/en-us/convert-data-files/use-sage-or-peachtree-conversion-tool-to-convert-to-quickbooks/00/201900
I am so close to fixing my Opening Balance for 2019. I watched your videos and unreconciled the entire year. I need to edit my Opening Balance for 2019. On my statement it says 110.13. Can I enter this as a New - Journal Entry? If so, it wants the debit and credit to balance. where is the info for that? thank you so much!!!
Sarah Groh yes you can. What I would do is enter a journal entry debiting the checking account you are reconciling and crediting an Equity account, like Owners Equity
@@QbuniversityOrg Ok, so debit the checking account I am reconciling with the $110.13? And what other figure for the Equity account? Do I use the current wrong starting balance? Another number $?
Sarah Groh oh I see the 110.13 is the actual starting balance. So, I would actually debit or credit the checking for the amount your reconciliation is out of balance, and then make the offsetting side of the entry to the equity account. You will have to see if you debit or credit the checking based on if your recon adjustment is positive or negative
i have an account that was open in january 2018 - how do i enter the begging balance so that i can reconcile 2018 - if i reconcile now it won't match with my bank balance. help? thank you
I am cleaning up an account that a client started in 11/2020. the OBE was $198,000.xx. I deleted it. I brought in transactions from 1/1/2020. My reconciliation is off by the opening balance amount. What is the entry for the Openingin Balance 1.1.2020- basically the ending blaance 12.31.2019 from the bank statement
It essentially is the balance sheet as of 12/31/19. It sounds like maybe a journal entry as of 12/31/19 with a debit to the checking and a credit to retained earnings might do it
Is it possible to enter the last fiscal year's data using just the trial balance sheets? I am trying to convert everything to quickbooks pro 2019 and the company wants all of last years data in. I only have the trial balance for each month. Is this possible?
You could enter all of the monthly PL data from each months TB as a journal entry each month, enter a journal entry for the January 2018 balance sheet, then enter a monthly journal entry for just the changes in the BS. This would get each months TB in there although it would not have all the detailed entries in there (transaction details)
You raised a good point about considering the SOURCE of the funds. In my case, the first deposit is a transfer from another account but it also included unearned income from customer advance deposits. For example, Transfer = $100,000, of which $65,000 customer advance deps. Is i use the SPLIT feature, which Account do I credit the $35,000? Beginning Equity Balance? Thanks for the guidance.
Jocelyn Formento it depends. Where did that $35,000 come from? Was it from your own personal money?
@@QbuniversityOrg Yes, it was personal money. This makes it an owner equity, right? Thanks for the quick response. Your tutorials are clear and concise.
Jocelyn Formento yep it would be owners equity!
I am trying to set up Quickbooks online for my daughter. She sells stuff on Ebay and has not had any bookkeeping done at all. She just buys products and resells them. The year is half gone so not sure how to get started with Quickbooks. From your video I am guessing I would start with a $0 ballance and start entering sales from the day her business started? Then I would go into paypal or Ebay and start recording sales, fees and expenses?
Yeah if the business started this year you would start from the beginning with zero balances and start entering all the transactions
I’m in the process of moving our organization to QB from Sage. We only subscribed to the basic subscription so I don’t have access to Supplier Credit function. What will my Journal entry be to enter a supplier credit in my opening balance?
Thanks so much the video. The best explanation I've seen thus far! Please forgive me if I'm asking a question that you may have already answered. I would like to start entering transactions today, but I want to go back and enter beginning with the balance as of 01/01/19. Do I just follow the directions mentioned in the video or does it have to entered differently since we are now in April. Also do I need to connect the bank account to quickbooks in order to reconcile?
Thanks! You can by all means start entering as of today, and also go back to 1/1/19 and start entering. Accounts may not necessarily reconcile correctly until you get it all entered, but it should be fine. And you so not need to use the bank feeds to reconcile. You can enter everything by hand instead if you choose
@@QbuniversityOrg Ok great thank you! Apparently I'm behind a year and meant to say 01/01/2020 :) Just one more question. Because I'm starting further back do I enter the beginning balance by hand into the check register as the video instructs or is just the transactions?
@@savaughan2627 I would start by entering the opening balances by hand as of 1/1/20
@@QbuniversityOrg Thanks again!
@@savaughan2627 you're welcome!
After 3 years in business ,I just start using QBO 01/01/2021 with balance of $5090.00,How can I put this in the QBO Dr checking account and Credit Owner Equity with Journal entry?
Yep that works!
What can be done about o/s bank items carried over from prior to going on qb? They are not in the register to 'clear' when doing the bank reconciliation....TIA love your videos!
Thanks! Hmm, not sure how you could have outstanding items on the bank rec but they are not in the register? Sounds like they are really old? If they are really old, I would do a journal entry in QB adding or subtracting them from the checking account (depending on if they are OS deposits or checks) and make the offset to the journal entry Other Expense or something, then clear them both out on the next recon
I'm switching from Sage 50 CA come January 1st when our fiscal year ends. Do you have any advice to make this transition easier. Last year I tried doing this and Quickbooks was suppose to take my data from sage and transfer it over but after 3 weeks and no luck I decided to stay with Sage. I'm ready to make the switch and just do it manually.
Thanks so much!
I would fir sure make sure the books are closed out, reconciled, etc in Sage prior to the switch over. Are you going to be importing info to QB from Sage or just simply starting to use QB as of 1/1?
I was going to start fresh January 1. But if I could do it at the end of November once I reconcile my accounts I’d like to do that.
@@tashaalynn100 I don’t see why you couldn’t do that
Hi there,
Is there a way for me to import all the prior year balances into quickbooks? I have a new client that started with me this month and I only have the trial balance as at the start of the month in excel format. What would be the best way to enter these 'opening balances' into Quickbooks?
Olivia Pillay I would just do a journal entry to enter the opening balances
Hello! Is there a way to transfer money to a petty cash account that i use to have in a old business account to a new business account? And how would I do it?
Do you mean within Quickbooks? If so you can simply hit the + sign and choose Transfer, then transfer from the business account to the Petty Cash account you set up
@@QbuniversityOrg ok i will try that thank you so much!
Maria Liera You’re welcome
We just opened a new business. We used personal funds to open the checking account. The way this was set up for me is credit to Personal Loan and Debit to Checking account which does not populate a beginning balance when I attempt to reconcile. Any advice on how to correct this? Thank you!
I see where you said to make a journal entry for opening balances but what acct do I show it from and too? I have the chart of acct set up as Centennial Bank-Shop Loan and it has a 96k balance due.
I apparently set this up wrong to begin with because it shows up under my opening balance equity.
Morgan Collins the “plug” so to speak would be to an Equity account. Don’t use Opening Balance Equity though (its an account that QB uses to plug). So for example if the entry was to record $10,000 of cash in a checking account, the debit would be to Checking and the credit would be to Equity
This loan is older than the amount of time that I've been working for this business. How do I fix this without it messing up my checking balance? Do I need to show a transfer from the bank to my bank acct then move it to the loan liability acct? I've tried a few different ways but it keeps adding the amount to my checking acct.
Morgan Collins in all honesty, I don’t know all the specifics of the business and how it was originally recorded, but I would probably just re-classify it to shareholder distributions to clean up the balance sheet and move on.
What about non bank accounts? AP/AR and other assets accounts? Please add to your video !!!
Yeah those are special situations. Generally I advise people to enter the actual invoices for AR and actual bills for AP so that you can track individual customer account or vendor balances.
@@QbuniversityOrg Thanks for your quick answer!
Jamie Heiney you’re welcome!
Is the account "Opening Balance Equity" will remain forever in my future balance sheets? even if it is a 0 balance account?
Not if it has a zero balance. I prefer to show things in Shareholder Contribution instead
Thank you so much for the tutorials. I have extracted some data( customer lists, vendor lists, inventory assembly and inventory parts) from my company in Quickbooks. Currently i need to set up a new company profile and import the data into the new company profile in Quickbooks. I have tried several methods but no avail.Can you please help me out. Thanks
Donald Ntiamoah you can actually just convert your desktop file to qbo inside qbo. Have you tried this?
@@QbuniversityOrg As in backing up?
Donald Ntiamoah are you starting a completely new company file with a new company or are you converting an existing desktop file to qbo?
The Quickbooks University I really appreciate you time. Yes, I’m starting a new company file, however, I don’t need all the information in the back up. I need just the inventory data and vendor list. A lot of wrong entries were made. I wanted to pass journal entries to correct the data but it’s would only create another mess. So I intend to create a new file with the correct balances. I have some payables and inventory information I need to bring into the new file. Please do you get me now?
I’ve been able to export the list into excel but I’m having challenges importing that into QB
Let’s say I made a purchase of a computer and it was billed. I want to put it in a separate asset acct to track the depreciation. I billed the computer and placed it in the asset acct, but now the opening balance equity also reflects as if I used my own equity, but I purchased it from a vendor on credit. How do I reflect the opening balance when it’s not my equity but it’s on credit? Advice would be appreciated
Whose credit was it? Your personal credit or like a biz credit card?
@@QbuniversityOrg biz line of credit. Like Dell line of credit for instance. When you go on their website and buy things on biz credit
@@menorahtransportllc2807 you would enter this like a credit card almost or a regular line of credit - you would have to set this up as a liability account in your books and show that the balance goes up as you purchase things on it, and down as you make payments
@@QbuniversityOrg So what about the asset side of it after I made the liability part of it ? How do I stop it from having opening balance equity , like it’s my equity?
@@QbuniversityOrg Could I make the dell line of credit a subaccount to accounts payable?
I have a client that is just starting to use QB Online and they've been doing everything in Excel. How do I put in their opening balance as of Jan. 1, 2018? So that everything flows correctly for 2019.
Pamela Kilgore I would enter the ending balance sheet balances as a journal entry then start adding the transaction detail.
@@QbuniversityOrg thank you so much for your help. I knew I had to do some type of journal entry but wasn't quite sure where to start. I'm also going to join the university. I like the plan I see.
Pamela Kilgore you’re welcome. And awesome! Can’t wait to have you as a Member!
Our HOA had an old checking account that had been forgotten for years and never was included in QBD. They have since transferred the remaining balance into the checking account and closed the old account out. My question is how do we enter this into QBD? I don't see an equity account in the subscription other than Opening balance equity and retained earnings. If I put it to opening balance equity, it will never leave that area, or I don't know how to get rid of it. I am not sure how to bring this money in as it wasn't income, it was just an old account that is now closed. Do I create an Owner's Equity account?
I have a question I created a chart of accounts and added name vendor with opening balance and my chart of accounts creates a double account making it negative. How can I fix that ?
Did you enter an opening balance in the chart of accounts and in the vendor name?
@@QbuniversityOrg yes.
@@yessicaflores1540 ok you can only add it in one place. If you owe the vendor then I would add it there
@@QbuniversityOrg i have one question how can i add the vendors payment in the budget report?
@@QbuniversityOrg i want to thank you in advance for this amazing help. Also, to make it a little more clear it a vehicle loan. Where would you recommend me to add the loan amount? Is it recommended in the vendor section or in chart of accounts.
i need help on setting up inventory, after putting an inventory start value it creates an opening balance equity how do i fix this later on
You would have to do a journal entry to fix this later on
I have a farm business and am moving from Sage to Quickbooks online. I am wanting to enter all my year end totals but don't want it effecting my partner's equity since if we sell the business at one point, personal or partner equity is non-taxable (From my understanding)
How do I enter the year end data without it effecting equity amounts?
In theory it shouldn't because all you are doing is entering the ending balance sheet from Sage as your opening balance sheet in QBO. The tricky part is making sure you enter all those ending balances the right way. For example, entering inidividual invoices for AR, entering bills for AP and entering all your outstanding checks so they can clear when you reconcile. What I would check first is if you can import your data from Sage over to QBO. This would make it much easier.
@@QbuniversityOrg It apparently can be done but I can't seem to get ahold of anyone to actually help me do it. I will try to do the online chat again and see if I can get somewhere. Thanks.
Would you recommend using Journal Entries for it, if I can't get anywhere with them?
@@deannalambert5394 yeah most definitely I would use journal entries. Have you looked at these instructions: quickbooks.intuit.com/learn-support/en-us/convert-data-files/use-sage-or-peachtree-conversion-tool-to-convert-to-quickbooks/00/201900
@@QbuniversityOrg Thanks so much for that. I will check it out and your site too! Really appreciate it and your response time was amazing.
Deanna Lambert you’re welcome!
What if you are starting QBO from another software and want to bring across the entire trial balance and the cash account has over 40K in it?
The best way would be to do a journal entry recording all those starting balances
@@QbuniversityOrg That’s what I did. But then doing my first Bank reconciliation on QBO, my beginning bank balance has nothing in it!!!
I am so close to fixing my Opening Balance for 2019. I watched your videos and unreconciled the entire year. I need to edit my Opening Balance for 2019. On my statement it says 110.13. Can I enter this as a New - Journal Entry? If so, it wants the debit and credit to balance. where is the info for that? thank you so much!!!
Sarah Groh yes you can. What I would do is enter a journal entry debiting the checking account you are reconciling and crediting an Equity account, like Owners Equity
@@QbuniversityOrg Ok, so debit the checking account I am reconciling with the $110.13? And what other figure for the Equity account? Do I use the current wrong starting balance? Another number $?
I am actually stuck in some form of reconcile with a positive $75.05.
Sarah Groh oh I see the 110.13 is the actual starting balance. So, I would actually debit or credit the checking for the amount your reconciliation is out of balance, and then make the offsetting side of the entry to the equity account. You will have to see if you debit or credit the checking based on if your recon adjustment is positive or negative
@@QbuniversityOrg Ok, I pulled up my January 2019 statement again and it reads Beg Balance $410.96. With this change... I will follow your directions.
i have an account that was open in january 2018 - how do i enter the begging balance so that i can reconcile 2018 - if i reconcile now it won't match with my bank balance. help? thank you
You can simply go to the check register and enter that opening balance as of 1/1/18
I am cleaning up an account that a client started in 11/2020. the OBE was $198,000.xx. I deleted it. I brought in transactions from 1/1/2020. My reconciliation is off by the opening balance amount. What is the entry for the Openingin Balance 1.1.2020- basically the ending blaance 12.31.2019 from the bank statement
It essentially is the balance sheet as of 12/31/19. It sounds like maybe a journal entry as of 12/31/19 with a debit to the checking and a credit to retained earnings might do it
@@QbuniversityOrg That was my thought. I wanted to be sure; sometimes Retained Earnings is a "dumping ground"
@@vickigotha80 true but better than OBE!
Is it possible to enter the last fiscal year's data using just the trial balance sheets? I am trying to convert everything to quickbooks pro 2019 and the company wants all of last years data in. I only have the trial balance for each month. Is this possible?
You could enter all of the monthly PL data from each months TB as a journal entry each month, enter a journal entry for the January 2018 balance sheet, then enter a monthly journal entry for just the changes in the BS. This would get each months TB in there although it would not have all the detailed entries in there (transaction details)
@@QbuniversityOrg thank you so much! That is what i had figured, I just needed to double check :)
Theresa Brewster you’re welcome!