What is Opening Balance Equity and How to Fix It?

Opening Balance Equity is a term commonly used in accounting, particularly in QuickBooks. It represents the initial balance of a company's equity accounts when it is first created. In this article, we will delve into the concept of Opening Balance Equity, understand its significance, and explore how to fix any issues that may arise.

Understanding Opening Balance Equity

Opening Balance Equity is an account that is automatically created in QuickBooks when you set up a new company file. It serves as a temporary account to hold the initial balances of equity accounts until they can be properly allocated. ...