Enter an opening balance for a bank account
Description

An opening balance is the balance in your bank account on the day you start using Accounting.

You can enter opening balances at the same time as creating a bank account or added later from Settings.

Cause
Resolution

Before you start

What you need to know

The opening balance makes sure the bank balance shown in Accounting matches the balance in your actual bank account, before post more transactions.

  • Use the amount from your bank statement on the day before you started using Accounting
  • The date you use for your opening balance must be before the date set as your Accounts Start Date
  • Don't use the amount from your trial balance. This can include transactions that aren't yet on your bank statement

TIP:

Enter a positive bank balance as a Receipt (Debit). Enter a negative bank balance for overdrafts, loans as credit cards as a Payment (Credit).

Enter the opening balance

  1. Hover over Settings and select Business settings.
  2. In the Opening Balances section, select Bank.
  3. Check the Accounts Start Date is correct. 
    If it isn’t, click the date. Then change it as required and click Save.
  4. Enter the details of the opening balance.
    • Date - the date must be before your Accounts Start Date. This is the date you first started using Sage Accounting. If you're not sure, this is the date you entered when you set up your financial year, accounting dates and VAT
    • Type - choose whether your balance is:
      • Receipt (debit) - positive amount
      • Payment (credit) - overdrawn amount
    • Opening Balance - enter the bank balance on your Accounts Start Date
  5. Save.

Once saved:

  • The balance shown on the bank accounts updates to include the opening balance
  • An opening balance transaction shows on your bank activity, ready to be reconciled

Adjust the opening balance

If you've made a mistake and entered the opening balance incorrectly, you can change a bank opening balance.


Reconcile an opening balance

We recommend that you reconcile your opening bank balance straight away. This ensures your bank balance is correct and matches the opening balance from your bank statement when you do your first reconciliation.

Steps to duplicate
Related Solutions

Enter ledger account opening balances