What is the easiest way to create starting balances for AR and AP?

We are switching to QuickBooks. Is there any easy way to transfer the AR and AP balances over? Do I just enter bills and Invoices to match?

1 Answer(s)

Hello William.

Thank you for coming to our Community Forum for advice.

The point of the file to start is to set up what you know applies; if this open AP or AR is from a prior fiscal year and you are on accrual basis, then you know this is from Real Equity; not OBE, but Retained Earnings or an Equity account you name Prior Year. Once a file is set up, if you used any of the functions that posted to OBE, you need to zero that out to real equity, anyway, so why also put your own Known entries there, just to handle that value again when you want to Zero out OBE; I put something I know in the right place the first time I handle it. And OBE, once a file is set up, is never used again.

If you are a cash basis entity, then None of this AP or AR has been reporting and it needs to be the Real Info. That can be the original items, or a generic Other Charge type that posts to Income (for invoices) and to real Expense, or using items, for AP. That’s because these are unpaid in the transition, and they need to be reported as Current Activity when they get paid in the QB file, now that you transitioned. It cannot be Equity if it was never reported.

If you’d like more details regarding this, you are welcome to contact the QuickBooks Support Number.

Hope this helps.

Cheers!

Answered on December 20, 2018.

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