Learn Best Methods to Fix Beginning Balance Issues in QuickBooks Desktop

QuickBooks is one of the most robust auditing and payroll desktop software applications. However, it can run into errors and problems, resulting in inefficient operations. You should fix the problem with the start balance in QuickBooks as soon as it happens. An incorrect opening balance might delay the QuickBooks Desktop reconciliation procedure. 

This occurs if the account is set up with an incorrect or zero balance. Or if adjustments were made to a transaction that had previously been cleared and reconciled. This blog will

critically focus on methods to fix beginning balance issues in QuickBooks Desktop.

Methods to Fix Beginning Balance Issues in QuickBooks Desktop

There are several ways to fix beginning balance issues in QuickBooks Desktop. Refer to the below methods and detailed steps to fix this issue and get your work started as soon as possible. 

Method 1: Correcting A Zero Balance

If the account balance is negative, you must create the opening credit once again. However, you cannot select this in the "begin reconciliation" menu; you can make a notation in your journal and perform a quick reconciliation to rectify the situation.

Step 1: Firstly, make a journal entry by inputting the date and amount. Follow the below instructions:

1. Navigate towards the “Company” option and choose “Make General Journal Entries.”

2. Alter the dates to the statement date, which is imported from the starting balance.

3. Choose the proper account and proceed with the list of account

4. Input the appropriate opening balance in the debit section

5. In the following line, select “Opening Balance Equity.”

6. Now, choose the “Save” option to apply changes.

Step 2: Execute the mini reconciliation to appropriate the starting balance in the window. Follow the step-by-step process as below mentioned:

1. Choose the “Banking menu” and navigate toward the “Reconcile” option

2. Select an appropriate account from the list of menu

3. Enter the statement date and last balance 

4. Proceed by clicking “Continue.” 

5. Next, choose the journal entry in the “Deposits and other credits” tab

6. In this step, ensure the difference amount should be “0.”

7. Finish this step by choosing the “Reconcile Now” option.

This method should ensure you’ve successfully executed the process to fix beginning balance issues in QuickBooks Desktop and that it is resolved. However, if your concern is correcting an incorrect balance, refer to the below method.

Method 2: Correcting an Incorrect Balance

Another method is to correct an incorrect balance by following the below steps:

Step 1: Run Reconcile Discrepancy Report

1. Navigate towards “Reports Menu” and select “Banking.”

2. In the next step, choose “Reconciliation Discrepancy.”

3. Now, choose the proper account and proceed by clicking “OK.”

4. Once done, you’ll have a list of transactions which modified since the last reconciliation 

5. Refer to the “Use this report” tab to locate the triggering issue

6. Once you spot the triggering issue, note the “Transaction Date” and “Last Modified Date.” This will ensure the date when the modification was done.

Step 2: Verify Audit Trail Report

1. Navigate towards the “Reports” menu and select the “Banking and Previous Reconciliation” option

2. Choose the proper account that needs to be reconciled

3. Select the latest statement date and go to “Transactions Cleared,” and select the “Display” option

4. Note the statement and the date of creation of the reconciliation 

5. Proceed by clicking on the “Reports” tab and choosing “Accountant and Taxes.”

6. Also, ensure you choose “Audit Trail Report.”

7. Select the “Customise Report” option

8. Move ahead by clicking the “Filters” option and filter the account from the options.

9. Proceed to the “Display” option and set the “Date Filter” by setting it to the “from” field blank “to” to the statement date

10. Once done, select the “OK” option.

11. Set the from date to the previous PDF reconciliation creation date and the to date to today.

12. Ensure transactions in the “Report Account” for the issue

Step 3: Earlier Reconciliation Report

1. Navigate to the “Reports” tab and choose “Banking and Previous Reconciliation.”

2. Select the proper account and ending date of the statement

3. Next, choose the “Display” option

4. Note the differences between the previous statements and the financial institution. 

Conclusion

Hopefully, this blog will fix your system's beginning balance issues in QuickBooks Desktop. We’ve focused on explaining these solutions as simply as we could. In case you require additional technical assistance, seek professional QuickBooks technical assistance to assist you.