Summary
Description
Enter opening balances when you start using Accounting. It makes sure you have a true picture of your finances.
Enter opening balances for:
- Bank accounts
- Ledger Accounts (trial balance)
- Customers and suppliers
Resolution
- We recommend you start using Sage Accounting from the start of a new accounting period. This could be the start of a new tax month or quarter, or the start of your financial year. This makes it easier to close off information in your current system. You then go forward with Sage Accounting
- Enter this start date in the settings: From Settings, choose Accounting Dates & VAT. Enter your Accounts Start Date in the relevant field
- Submit your final VAT Return using your previous system
- Print the trial balance from your previous system
- Create records for customers, suppliers, and bank accounts in Accounting
Information you need
- A list of outstanding (unpaid) transactions for your customers or suppliers
- Balance for each bank account from your bank statements
- Balance of each ledger account from your trial balance
How it works
Enter opening balances either all at once or at different times depending on what works best for you.
For example: your accountant previously processed your accounts for you.
They may not have sent you your full trial balance yet. You can still enter your customer, supplier and bank opening balances. You then enter the remaining values from the trial balance later.
Enter opening balances as a single value or as a list of transactions. If you have unpaid invoices from your previous system, enter them as separate values. You can match them with a payment later.
You may have a large number of customers or suppliers. Consider importing opening balances from a CSV file.
Read our article Import opening balances >
How to enter opening balances
Once you’ve done this, you can enter opening balances for the following:
- Outstanding customer transactions >
- Outstanding supplier transactions >
- Bank accounts >
- Ledger accounts from a trial balance >
Recording opening balances
All transactions have to conform to double-entry bookkeeping rules. An opening balance must have both a debit and credit value.
One side of the transaction records against one of the following:
- The ledger account entered.
- The ledger account linked to the bank.
- Customer or supplier record.
The system records the other side of the transaction against the Opening Balance Control ledger account (usually 9998).
Adjust your opening balances
If you've made a mistake, you can edit or change an opening balance at any time.
How you make the change will depend on the type of opening balance and its status.
Change an opening balance for a bank account >
Change a customer opening balance >
Change a supplier opening balance >
Change an opening balance for a ledger account >
Changing an opening balance updates the relevant ledger accounts. The system records any differences between total debits and credits for all opening balances. It records them against the Opening Balances ledger account (9998).
Check the opening balance control ledger acccount
Read our article Run the Nominal Activity report >