How do I transfer Opening Balance of Balance Sheet Accounts? What would be the other side of accounting entry?

As a general rule, you will use the Equity accounts for one other side entry.

What you have are a possible two options.

If you are transferring, opening balance from all the Balance Sheet accounts (assets and liabilities), use Opening Balance Equity (under Equity type) account. Opening Balance Equity Account will Net out to zero once all the Balance Sheet accounts are transferred.

If on the other hand, certain opening balance accounts (like bank account) are already transferred, then you will need to review further how and where they were transferred. If you see zero balance on Opening Balance Equity Account, might as well directly transfer to Owner’s Draw or Owner’s Equity Account.

For AR opening balance, you will to reenter customer invoices again. Depending upon your accounting method (cash or accrual basis). In general, you will enter Invoice to Income Account on Cash basis; and on Accrual basis, you will enter other side of entry to Equity Account. Make sure to consult with your CPA Accountant or Tax Accountant. Exactly the same procedure also applies to AP opening balance. Journal Entry will not work.

For Inventory Asset opening balance, you will need to use Product/Services feature to enter inventory value and quantity. Journal Entry will not work.

For other Balance Sheet Accounts, couple of options available are to enter, but writing Journal Entry will also work fine.

For Opening Balance date, I prefer to use ending balance date. For example for 1/1/2014, I like to use Ending Balance date of 12/31/2013. Balance amount is still the same.

Same steps are applicable to Income and Expense accounts, especially you are transferring anytime during the year.

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