Need Help with some accounting entries impacting balance sheet - hoping someone can offer some advice

[vze56v6x]

I manage a small nonprofit, and the person handling our accounting entries made some unusual choices. In 2015-2016, they listed PAYPAL as a bank account in QuickBooks. They recorded purchases (like postage) as expenses, and any incoming funds (donations, etc.) as income. The income was then transferred to the organization’s checking account, and I can see journal entries reflecting these transfers. However, when I run the Income and Expense statement for those years, I also see PAYPAL listed as an expense category so from my perspective these expenses were being counted already.

Essentially, there were 3 accounts created in the chart of accounts: 1 labeled "PAYPAL SALES" (for income) ,  "PAYPAL FEES" (for expenses), along with a separate PAYPAL Bank Account .  All 3 of these show up in quickbooks with a zero balance.

Every year when I print the balance sheet, I see two entries that clearly originate from 2015 and 2016. However, these entries have carried forward into the balance sheet through to 2024.

Is there something I can do to clean this up and remove them from the 2024 tax filing year onwards? Or should I leave the 2024 balance sheet as it is and address it for 2025 instead?

To give some context, our nonprofit is small, with earnings well below $50K per year, so we only file the 990 postcard. However, I want to tidy up QuickBooks so these two entries don’t show up on the balance sheet anymore.

Is there an easy way to clean this up? I’m not an accountant, and the person who made these errors is no longer with us. Unfortunately, we have no funds to pay an accountant for help. Should I clean this up myself, or is it better to leave it alone?

Attached are the entries for 2015 and 2016 balance sheet so it is obvious this started in these 2 years. The last is a screenshot of 2024 balance sheet lines. As I said we are a small nonprofit so the financial impact is low but I feel this needs to be cleaned up.

I need some simple instructions on how to clean this up in QuickBooks online.

If anyone can please help I will be VERY appreciative.

[Bsch4477]

This is a tax forum. Try Quickbooks support.