How to record the opening balance of a bank account in QuickBooks accounting software?

Software: Intuit QuickBooks accounting software

In our earlier post, QuickBooks | Unpresented Cheque, we discussed whether to record the “GL balance” or the “actual bank balance” as the opening balance of the bank account in the QuickBooks accounting software.

There are many methods to record the opening balance of the bank account in Quickbooks.

When creating a bank account in QuickBooks, you can record the opening balance of the bank by clicking the “Entering Opening Balance” button and record the opening balance in the pop-up window.

Opening balance of the bank

However, if you have created a bank account and start recording the transactions without setting up the opening balance initially, you need to record the opening balance of the bank account via either a “Make Deposits” or a “Journal” method.

For the “Make Deposits” method, you select the relevant bank account at the “Deposit To” field and use the “Opening Balance Equity” account in the “From Account” field to record the opening balance of the bank account. The “Make Deposits” entry will debit the “Bank” account and credit the “Opening Balance Equity” account. To a layman, using the “Make Deposits” method is an easier method to record the opening balance of the bank account.

If you prefer a “Journal” method, then pass a journal to debit the Bank and credit the “Opening Balance Equity” account.

 

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