QuickBooks | Opening Balance – The Balance Sheet accounts

Software: Intuit QuickBooks accounting software

After you have entered the opening balances for the Accounts Receivable, Accounts Payable, Stock (inventory) and unpresented cheque as of the crossover date; you need to enter all the other Balance Sheet accounts such as Fixed Assets, Prepayments, Accruals, Loans, Equity, etc.

The opening balances for the other Balance Sheet accounts can be entered via a General Journal (From the Company menu select Make General Journal Entries).

QuickBooks General Journal

When entering the opening balance for the GST, the Tax Agent which is associated with the GST Payable account will be shown in the Name column automatically. You should select the respective Tax Item such as the “Standard Rated Input” or “Standard Rated Output” tax item. With the proper Tax Item set, you can “File Tax Return” later when you are ready to pay the Tax or receive the Tax Refund from the Tax Agent.

The Opening Balance Equity account is a system account which is used for recording the opening balances. It should have a zero balance once the balances as of the crossover date are properly setup.

If you are entering the Unpresented Cheques separately, then the bank balances you entered should be the physical bank balance as your bank statement instead of the Balance Sheet balance.

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