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Opening Balance Equity is an account that QuickBooks automatically creates under certain circumstances, most commonly when creating a new account and setting an opening balance. The following screenshot someone created a new checking account and set the opening balance here. It is an equity account, which means it sits alongside Owners Equity, Retained Earnings, Capital Stock, etc.



When Opening Balance Equity has a non-zero balance, you need your accountant to make end-of-year adjustments into other balance sheet accounts and zero it out. If you only entered the beginning bank balance during the set up of the bank account in the chart of accounts, you may have a simple fix. For the Checking account, enter only the reconciled bank statement amount in that journal entry. This entry was posted in Finance, Getting Started, Landlording, QuickBooks and tagged chart of accounts, historical transactions in quickbooks, how to, howto, learning, mac by Jonathan Wolter. Landlord Accounting: QuickBooks Easily Mastered for Property Managers, Investors, and Landlords.


And it takes your accountant’s help to correctly allocate them to the right accounts depending on which owner contributed them and whether they happened in the current, or a prior, year. Since the beginning amount is generally from prior period activity, do a Journal Entry to retained earning to zero out the Opening Balance Equity. Or, it could need to go to the member’s Equity account, or split among several owners.



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