Entering opening balances for your file is done in Main Menu > Accounts > Opening Balances. If you are starting to use your file at the beginning of the financial period then this is the easy way to get started.

Example:

You are starting to record transactions from 01/07/2007. We will add an opening balance for a Bank Account which has $650 in funds available as at the close of business 30/06/2007.

In this case you can get the opening balance from your bank statement however for other Acccounts you can get opening balances from your old accounting system (balance sheet report as at 30/06/2007) or from your tax return (financial year ending 30/06/2007). Ensure those records are complete and accurate before using the information. If in doubt check with your accountant

1. Set up a Bank Account called Asset: Cheque Account if you haven’t already done so. See the Adding a Bank Account for assistance.
2. From the main menu go to set-up and select Opening Balances.
3. You should now be at the List of Opening Balance screen.
4. Enter the last date of your previous accounting system to be 30/06/07.
5. Enter $650 into the Asset: Cheque Account field which is found in the “Asset” section.
6. Go to the bottom of the screen and click save.

If there are uncleared debits or credits you will need to adjust the opening balance for the Bank Account by the total value of these transactions. This will enable you to reconcile using the Bank Reconciliation report

You may have invoices issued or received that hadn’t been paid at the time you started your file. It is useful to enter all of these so that you can track them as payments are made or received against the Bank Account you have just started.