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Opening balances: start the books on a date

Pick the day the books begin, enter what each account was worth that morning straight off the statements, and everything before it stops mattering.

1. Pick the dateThe first day of a month is the cleanest start; January 1 is cleanest of all, because payroll starts the year at zero. Gather the closing statement for every bank account, credit card, and loan dated the day before.
2. Open Opening balancesIn Books & Payroll, go to Chart of Accounts and click the "Opening balances" chip. Set "Books start on" to your date.
3. Enter each accountThe table lists every balance sheet account with its type and whether to enter what you HAVE (bank accounts) or what you OWE (cards and loans). Type each Amount ($) from its statement. The last column reads "needed" until you do, "set" once you have, and "dated" if the start date moved after you entered it.
4. SaveClick "Save opening balances." The line beneath shows Assets minus owed equals your opening equity. Re-entering a number replaces it; it never adds a second one.
5. What does not go hereOnly bank, card, and loan accounts belong on this screen. What customers owed you, what you owed vendors, parts on the shelf, and machines are entered on their own screens, and the "Also needed on day one" list under the table tracks them: open invoices under Customers, open bills under Vendors, stock under Inventory, and equipment under Equipment & Assets (the equipment list and its depreciation usually come from your accountant).
6. Then reconcile the first monthEnter the first month's activity, bring in the bank file with Match Transactions under Banking, and reconcile to the first statement after the start date. A $0.00 difference proves the opening balance was right.