10/26/2026
One example of why reconciled and correct are different things.
Opening balance equity should be zero. Always. It is a holding account QuickBooks Online uses during setup, and once setup is finished there is no legitimate reason for anything to be in it.
When a balance is sitting there at year end, it almost always means a reconciliation was forced to balance rather than made to balance. Someone could not find the difference, so they parked it. The reconciliation report then reads as clean, because technically it is, and the error travels forward into every period after it.
It takes 10 seconds to check. Open your balance sheet, find opening balance equity, and look at the number.
That is a band-aid over a bullet hole, and it is the most reliable single indicator that a cleanup was not finished.