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Adjust income and expense amounts for a mid-year start date

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

  1. 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.

  2. Go to the Company menu and click Make General Journal Entries. Shortcut

  3. Enter your mid-year start date.

  4. 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 expenses.

  5. 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 account.

  6. 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 account.

  7. Save the journal entries.

See also

KB ID# H_SETUP_TASK_ADJUST_INC_EXP_MID_YEAR_START_DATE
9/29/2016 8:15:57 AM
PPRDQSSWS404 9138 Pro 2017 635a90