About starting balances

You can enter the starting balances for asset and liability accounts by posting a journal transaction—usually to period zero. As journal transactions can contain up to 999 lines, it is possible to enter most starting balances in a single journal transaction. Enter each account balance on a separate line.

Larger companies may not be able to enter the balances in one transaction. If you need to enter two journal transactions, use a clearing account to create a balanced entry.

At the end of the first transaction, enter the clearing account number and the amount necessary to balance the transaction. In the second journal transaction, finish entering the starting balances. Then at the end of the second transaction, enter the clearing account number and the amount necessary to balance the transaction. After you complete the entry of the starting balances, the clearing account returns to a zero balance.