Should Quickbooks Funds/Classes have beginning Balances?
by Brian Donnell
I have just been appointed Treasurer/Bookkeeper of a church which converted to Quickbooks Pro as of July 1, 2011.
They set up the "classes" as the funds (unrestricted, temporarily and permanently restricted) with the named sub-funds as sub-classes and have been booking activity to these throughtout the year.
I have noticed, however, that beginning balances were input to these classes/funds by journal entry as of June 30, 2011, and am confused as to why.
Shouldn't beginning balances only appear in the various funds under the net assets on the balance sheet?
I thought that only current year activity should appear in the classes/funds then zero out and be debited or credited to the net assets at year end?
Do you think that the original journal entry was incorrect? I'm confused. Thanks for any help.