I hope someone can shed some light on this matter for me:
My accountand and I have different views on this matter, and I do feel that she's looking at this from the wrong angle. We need(ed) to add personal credit card to Quickbooks since I use it for the company (server rentals & software purchases overseas, can't do EFT's) but we differ about the account opening balance.
We're redoing our books asof March 2012 due to too many preblems with the bookkeeping upto now.
So, on the VISA card I have the following (as at 1March 2012)
Credit Limit: R15000
Current Balance: R10,485.69 (this is what I owe the bank)
Available Balance: R4,514.00
So, I'm saying we should have an opening balance of "-10485.69". My accountant says now, we need to have an opening balance of "4514", and according to her this is how it's done in booking keeping.
But, that doesn't make sense to me. If I owe the bank money, then any payments towards the credit card will bring the negative balance upto a 0, and any payments from the credit card (to suppliers) will take the negative value further down.
With here example, I won't see the true reflection of what the company owe's me.
So when I look at the company overview, I can see that I have some outstanding payments (the payments haven't been captured yet), which is correct but my bank balances all show a good positive. Sure it should rather reflect a negative balance for the Credit Card?
This is in Quickbooks 2010