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Chapter 19. Equity Accounts > The QuickBooks Opening Balance Equity Account

The QuickBooks Opening Balance Equity Account

QuickBooks uses the Opening Balance Equity account to keep your balance sheet in balance before you enter all your assets and liabilities. After you have added all your assets and liabilities in QuickBooks, the Opening Balance Equity account balance should be zero. If not, the Opening Balance Equity account balance represents your company’s earnings since your QuickBooks start date. You don’t have to change the Opening Balance Equity account balance as long as you don’t mind having this account name on your financial statements.

Note

Each time you enter an opening balance for an equity account, QuickBooks offsets the Opening Balance Equity account with an opposing amount. For example, if you enter $5,000 as the opening balance in your Fixed Assets account, the Fixed Assets account is debited for $5,000 and the Opening Balance Equity account is credited for $5,000.



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