Bank Feed-Connecting for the first time
Connecting QuickBooks Online to your bank account and bank feed can as tricky as hand feeding a seagull. Actually, feeding the seagull may be easier. Part of the issue is the initial connection to the bank will produce an instant "opening balance equity" account transaction with your bank balance as of 90 days ago.
For most of us, the creation of this balance is unnecessary. QuickBooks Online will also reconcile it. You may not notice this till you go to do your first bank reconciliation. Low and behold, you see this strange opening balance. Where did it come from? How was it calculated?
The figure is the opening balance from 90 days prior to connecting the bank feed. It automatically populates into the opening balance equity account. This account should be zero when you have completed initial set up of QuickBooks. Truly this account has one purpose. It is used while you enter your balance sheet entry for your opening balance. It is used for setup of your records only. Once you have entered it, the Opening Balance Equity account will have a zero balance and most likely, will never be used again.
Below is a short video with the steps for connecting the bank feed for the first time. See video in an earlier post for how to enter transactions older than 90 days. I hope that this will help to clarify the one of the idiosyncrasies of QuickBooks Online and the bank feed.
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