set up chart of accounts not balanced

SOLVED

Hi,  I just entered my chart of accounts, which is verified.  Then I entered the opening balances from my accountant's balance sheet.  The only thing I did not enter was the last listing:  Net income (loss).  I don't know where to put this, or if I need to for a new fiscal year.  But when I try to close my chart of accounts set up guide window, it says my accounts are not balanced.  What should I do? 

Thanks!

  • 0

    You are better off to request a trial balance from the accountant as of the first day of new year.

    The next income/loss becomes part of the retained earnings which is part of the equity account. The retained is an accumulation of all the net profit/losses since the company was formed - depending on the accountant there can also be other year-end entries made by the accountant to retained earnings which are not necessarily strictly net income/loss related. How much are you out and is this the company's first year? If so you may want to enter the figures from Trial Balance dated the last day of the year and enter the ending balances for all the accounts so that you have a record of the first year's revenues and expenses along with the income stmt and balance sheet (which you already have).

  • 0 in reply to Smith and Co

    The Trial Balance is actually what the Accountant sent me.  But the date is the last day of the previous fiscal year.   On this Trial Balance there is a line for Retained Earnings - Previous year, as well as the net income/loss.  Do I add these together to create the total Retained Earnings?  Or can I just choose the option to record the difference in my retained earnings account?

  • 0 in reply to mirasong

    It still says my books are not balanced.  I entered all the information, with out doing the suggested defaulting to the Retained Earnings.  I have done the math on paper.  The accounts all equal 0.  I then did the math manually (three times) of all the opening balances I entered in the chart of accounts.  It all equals 0.  I don't understand why it is telling me I am not balanced.  I just created this company and went straight to the chart of accounts.  I have not entered any transactions or any thing else.

    Why is it not working?

  • 0 in reply to mirasong
    verified answer

    How about your Act Rec and Acct pay accounts - are there amounts in there? if so then have you entered the customers and vendors that have outstanding balances as of last day of yearend? These are subledgers that when totaled needs to match the 2 G/L accounts.

  • 0 in reply to Smith and Co

    Yes, there are amounts in the A/R & A/P.  I have not entered the customers or vendors.  How can I do that with out closing the chart of accounts window?  I am worried about what the implications will be if I close the Chart of Accounts window.  I will never be able to edit the accounts (specifically the numbers) if I close it.

  • 0 in reply to mirasong
    verified answer

    If you close it you will still be able to edit the numbers if you need to. You won't be leaving history mode.

    Then you can set up the vendor/customer names with the transactions that are outstanding.

  • 0 in reply to Smith and Co

    Ok.  I'll give it a try!  

    Thanks for your prompt help!

  • 0 in reply to mirasong
    verified answer

    Hi Mirasong,

    If any suggestions provided in this thread is able to help you resolving your issue, would you please click the 'Yes' button to the question - 'Did this answer the question?'  The thread will be marked as answered, which will benefit other users who have the same issue.  Thanks a lot. Big Smile

  • 0 in reply to mirasong

    Hi Mirasong,

    I know your post is from a long time ago, but I am having the same problem.  Do you remember how you got this to work?    Thanks.