We started our winery last year NOT using QB. I did not find a place to enter an opening balance, so I creating a new bank account titled opening balance – i am pretty sure this in NOT OK. What is your advice?
Also, I know I am not supposed to do this but I did. I have owner draws, should I catalog these under “Member Draws?”
I also have another Business Account, Money is moving back and forth (I did close the account this month 11/2018) what are best practices to transfer money between accounts.
If these are in later modules, just let me know.
Getting QB started when you have been using another accounting program is a little tricky. There is a sequence of steps to bring that information in. Basically you use the (infamous) Opening Balance Equity account to set the beginning balances. If you have done everything correctly, that account will be zero when you finish. Sounds like you are thinking in the right direction, but there are some other steps involved. This is a good issue to discuss in a consulting call to make sure everything settles out.
Owner Draws: Honestly, the category of the account is not a critical detail. The most important is the type of the account. It’s fine to have an Owner Draws account. Depending on how the business is structured and how many owner or partners there are will determine if you should use a Liability or an Equity account.
Transferring between accounts: It’s really easy to accidentally enter duplicate transactions for one transfer. My rule is to open the Write Check window, using the account where the money started from. In the account field, enter the name of the bank account the money is going into. When you open the register for the second account you will see the funds showing up as a “deposit”.
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