If you are setting up with a mid-year start date (a date not at the end of
your fiscal year) AND you know what your income and expenses are for the period
from the beginning of the fiscal year through the start date, you can enter an
adjustment for them. Then you will have an accurate profit and loss statement
in QuickBooks for the period starting with the beginning of the fiscal year and
ending on any date after your start date.
What if I don't adjust income and expense amounts?
If you do not make this adjustment for the current fiscal year, you will
have to add the income from your old records, covering the period up through
the start date, to the income in QuickBooks for the period beginning with the
day after the start date. Similarly, you will have to add the expenses from the
old records to the expenses in QuickBooks.
To do this task
Have ready a year-to-date profit and loss statement (also called an income
statement) for the current fiscal year, through your start date.
If the names of the income and expense accounts do not match those in your QuickBooks Chart
of Accounts, be sure you know which QuickBooks account is equivalent to each
account on the statement.
Go to the Company menu and click Make General Journal Entries.
Enter your mid-year start date.
In the first line of the Account field, enter Opening Bal Equity. In the
Debit field, enter your net year-to-date profit from the statement.
Important: If the amount is a loss, enter it in the Credit field
instead. Do not enter a minus sign. Your net year-to-date profit equals the sum
of all your year-to-date income minus the sum of all your year-to-date
For each income account on the statement, enter a new line.
In the Account field, enter the name of the QuickBooks income account.
In the Credit field, enter the year-to-date amount for that income
For each expense account on the statement, enter a new line.
In the Account field, enter the name of the QuickBooks expense account.
In the Debit field, enter the year-to-date amount for that expense
Save the journal entries.
Entering optional mid-year