Hi Robert...thanks for watching! You actually do not add appreciated market value to the equity of your business. Within QBO, you will only be tracking your "book value"...not your "Market value".
Very helpful!! I am reconciling July 2020 which has an incorrect opening balance probably because of mistakes that were made in prior periods. Can I use this method to make the opening balance in July match the bank statement? When reconciling do I select this open balance equity journal entry as cleared? Any help would be appreciated I am very stuck I'm very messed up books and want to fix going forward without having to re reconcile a year's worth of statements.
@@ambergiffin322 Thanks for the questions! QBO can really confuse us when it makes open balance equity journal entries. My advice: Start fresh....delete any open balance equity journals that QBO auto-created...and create your own. Pick a point in time for your reconcile. Let's say you are reconciling through July 2020. Get all the transactions you can from Jan-July accurate in your books. Then, see how far off your July ending balance in QBO is from your bank. Whatever that difference is...create an Opening Balance journal entry as of say 12/31/2019. If your QBO balance is less than the bank, you would DR your checking account and CR open balance equity. If it is more than your bank...you would do the reverse.
@@Incomedigs So do I have to reconcile that journal entry in July in order to get the next month's opening balance to match? Will this mess up my reconciliations from January through July? I just want the opening balance to be correct starting say August 1.
@@Incomedigs And do you teach a class or anything? I am trying to get certified in Quickbooks (I actually use desktop). I am not sure if there are classes to take before getting certified. Do you know about this?
@@ambergiffin322 Hi! You can make the transaction as of 31-July. Even if its not part of your Jan-July reconcile. Just b/c the date falls within a previous reconcile does not mean it needs to be included in that reconcile. Make the transaction as of 31-July....this should get your balance as of 1-Aug accurate. Then, on your next reconcile, include this 31-July transaction.
these are great videos and helping me setup my accounting .
Great to hear! Thanks for watching! Be sure to check out or end to end accounting course: www.incomedigs.com/reab2
thank you for this video!
Truly enjoyed the video! To the point and easy to understand.
Thanks for watching! Be sure to check out our end to end training: www.incomedigs.com/reab2
Can you show how you handle profits of flips between intercompany that are passthrough to your main s-corp?
Great video to get investors going for the first time!
How do you add the equity for a property from appreciation?
Hi Robert...thanks for watching! You actually do not add appreciated market value to the equity of your business. Within QBO, you will only be tracking your "book value"...not your "Market value".
Why is the interest part of COGS?
Anything directly related to a rental property/ flip should be recorded as COGS.
Very helpful!! I am reconciling July 2020 which has an incorrect opening balance probably because of mistakes that were made in prior periods. Can I use this method to make the opening balance in July match the bank statement? When reconciling do I select this open balance equity journal entry as cleared? Any help would be appreciated I am very stuck I'm very messed up books and want to fix going forward without having to re reconcile a year's worth of statements.
Also the bank shows a very negative amount so would this method fix that as well?
@@ambergiffin322 Thanks for the questions! QBO can really confuse us when it makes open balance equity journal entries. My advice: Start fresh....delete any open balance equity journals that QBO auto-created...and create your own.
Pick a point in time for your reconcile. Let's say you are reconciling through July 2020. Get all the transactions you can from Jan-July accurate in your books. Then, see how far off your July ending balance in QBO is from your bank. Whatever that difference is...create an Opening Balance journal entry as of say 12/31/2019.
If your QBO balance is less than the bank, you would DR your checking account and CR open balance equity. If it is more than your bank...you would do the reverse.
@@Incomedigs So do I have to reconcile that journal entry in July in order to get the next month's opening balance to match? Will this mess up my reconciliations from January through July? I just want the opening balance to be correct starting say August 1.
@@Incomedigs And do you teach a class or anything? I am trying to get certified in Quickbooks (I actually use desktop). I am not sure if there are classes to take before getting certified. Do you know about this?
@@ambergiffin322 Hi! You can make the transaction as of 31-July. Even if its not part of your Jan-July reconcile. Just b/c the date falls within a previous reconcile does not mean it needs to be included in that reconcile. Make the transaction as of 31-July....this should get your balance as of 1-Aug accurate. Then, on your next reconcile, include this 31-July transaction.