We set up a new quickbooks back in October 2006. When entering balances we used an owners equity off-set account. Quickbooks also used this account when we entered the year-to-date payroll balances. What do we do with the balance in this equity offset account at the end of 2006? We do not want a balance to stay in the account. It was used strictly as an offset account. If someone could let me know I and my President would be very grateful. Thanks, Kim
What system were you using prior to setting up the QB file in 10/06? You should use the Trial balance sheet as of 9/30/06 from the old system as your starting point. Run the TB as of 10/1/06 in the new file and create a JE that forces the 2 trial balances to match. That will tell you what the correct way of clearing the {dreaded} Opening equity balance (OBE) account.
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