Hi there
I need some advice on zero-ing down the suspense account (9998). It is mainly comprised of untagged transactions, which I am working through, but I am stuck on journalling out the opening balances on the bank account. We are not a new start up, just new to the system.
I have been looking at this thread for help, Suspense Account Not Zero, but we are an existing Ltd company so nothing to do with input towards a Sole Trader and I am unsure which nominal account to use?
Can anyone help?
Thanks
Thea
Hi @GUCycles
You would need to tell QuickFile where the values come from. For example, if you have £1,000 as an opening balance - where has that £1,000 come from? Would it have been from previous sales invoices, could it have been a loan, or something else?
You will need to journal the opening balance to the nominals that are relevant to the source of that money.
If you came from another system (e.g. Xero or Sage), then you may wish to take a look at our guide to getting started.
I hope this helps
Hi
not really but it might be because I have the wrong understanding of what an ‘opening balance’ actually is… I’m talking about the amount of money physically in the bank account at the start of the period? We haven’t used a system in the past - just excel spreadsheets.
Thea
The same concept would apply with the money in the bank account. Where did that opening balance come from? The concept is, money can’t just appear in a bank account, it has to come from somewhere and this needs to be reflected on the account.
Have you started using QuickFile part way through an accounting period, or have you started from day 1? If it’s part way, then there’s a topic here which may help you with this.
If you’re unsure on where it should be journalled to, it may be worth running this past your accountant to be sure.