Use Update Starting Balances to carry the corrected balances from the prior year over to the current year. This will change the starting balances in the new year’s accounts, but will not affect the transactions you have already entered in the new year.

To update starting balances from prior year end:

1. Open the current-year data the entity that requires updated balances.
2. Select Utilities | Update Starting Balances.

   For detailed steps, see Update Starting Balances.

This will not affect your income statement, since the starting balance off income and expense accounts is always zero.

Note that if you add new accounts in the prior year, they new accounts will not automatically appear in the current year. You need to manually add them before updating balances.

See these related Forum posts: