An incorrect opening balance in QuickBooks can create all kinds of problems. QuickBooks is the most recommended software for business accounting needs in the United States and it is not difficult to fix problems within the software in most cases. Understanding how to use QuickBooks and its features can greatly increase production and reduce the number of errors saving time and money as well as frustration. Many of these frustrations are simply caused by misusing QuickBooks or not understanding how to use the features of QuickBooks. A skilled professional can provide the QuickBooks help you need and eliminate your frustrations and errors related to the accounting function.
Opening Balance in QuickBooks
Errors can easily occur in the opening balance sheet when reconciling the bank statement; in fact this is one of the most common areas for errors to occur in QuickBooks. Every time the bank statement is reconciled, there is a check-mark that appears in every reconciled transaction’s entry sheet within the register. Sometimes these transactions and entries disappear, get deleted or un-reconcile. A warning message will appear asking if you wish to delete this reconciled transaction. Or it may say that you have changed a transaction that has already cleared. If you decide to void or delete one of the transactions after the warning message has appeared, QuickBooks will automatically add the transaction amount to the opening balance in QuickBooks for the next reconciliation. Does this sound familiar?
If you are using versions 2003 or older, this may not work: This could be due to the fact that there is more than one entry, or that the amount has already been deleted/voided. To fix this print off the reconciliation report from your last reconciliation and compare the ending balance to the beginning balance on your current bank statement. If this number does not match, you will need to go through the previous reconciliations month by month until the problem is located. If the numbers do match, double check each transaction against the register and locate the suspected errors, then mark it (or them) as reconciled transactions or re-enter the value if it had been previously deleted or voided. Click record to save the changes.
We HIGHLY recommend upgrading EVERY YEAR, or at the minimum every other year, to the current version of QuickBooks. QuickBooks does not support older versions and technology advances have significantly improved the capabilities of the software. In addition, it is possible that you will experience conflicts in the compatibility of the data if your software is two versions back or more.If you are using version 2004, QuickBooks has a discrepancy report function found in the reconciliation window. Here you will enter the bank’s ending balance and then click the locate discrepancies button. This will create a discrepancy report which will locate and show all deleted or voided transactions from your last reconciliation until the time you run the report. You can also pull a detailed discrepancy report that will highlight possible errors.
The best solution to problems you are having in the software, including errors related to the opening balance in QuickBooks, may be to seek QuickBooks help from a trained professional and avoid these simple errors. If you believe you or your staff needs additional QuickBooks training or support, or are interested in outsourcing the whole process, click the “Find a Trainer in my Area” button at the top of the page for information on a local QuickBooks expert.