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Why starting balance amounts in expense categories?
Freds
Member Posts: 3
Hi there, I reviewed my PL summary view for each expense account. I see some accounts have starting balance of $0. Some of them have an amount for starting balance. Did I do that? I want the starting balance to be $0.
Could you tell me how to fix? Thanks much.
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@Freds,
Accounting is a perpetual set of data. You would see opening balances in expenses and income that are from prior years. They do not affect (not counted) in computing the current profit and loss. If there was no opening balance then the prior year balance sheet or income statement cannot be created because the data is not present. Hope that makes sense.
Mike, thank you for responding. I will think further. I don't need 2019. Maybe I will just delete those entries...
Sure. If you are starting new in Wave then I would do a journal entry to record your opening balances as of the beginning of the year you intend to start. Sounds like 2020. So an entry dated 1/1/2020 would be appropriate.
Thank you.