The opening balance is the balance that is brought forward at the beginning of an accounting period from the end of a previous accounting period or when starting out.

This also applies when starting a new Company and would like your offline balances to be updated in BizCentric.

1. Introduction

If your company is newly established, you’ll likely have minimal opening balances to import. However, if you’re transitioning from a legacy accounting system such as Tally or a Fox Pro-based software, you may have a significant amount of data to import as opening balances.

We suggest initiating your accounting operations in BizCentric at the beginning of a new financial year, but it’s also feasible to start midway through a year. To set up your accounts effectively, you’ll need the following information for the day you commence using BizCentric for accounting:

Assets

1. Stock assets (stock in hand).
2. Fixed assets like Furnitures, computers, etc.
3. Accounts Receivables (AR) i.e. unpaid invoices which you have sent to your Customers.
4. Current assets like bank balances, cash in hand, deposits, etc.

Liabilities

1. Capital accounts like your shareholder’s (or owner’s) capital.
2. Current liabilities like loans, salary payables etc.
3. Accounts Payables (AP) i.e. unpaid invoices which your suppliers have sent you.

If you previously used another accounting software, it’s essential to first close the financial statements in that software. The closing balances of the accounts should then be transferred and updated as opening balances in BizCentric. Before proceeding to update the opening balances, ensure that your Chart of Accounts contains all the necessary accounts.

You can generate opening entries using the Opening Invoice Creation Tool within BizCentric.

Note: Opening entries are only applicable to Balance Sheet accounts and not for Profit and Loss Accounts.

2. Opening Balance of Assets

2.1 Fixed Assets

2.2 Stock Assets

2.3 Accounts Receivable

2.4 Current Assets

3. Opening Balance of Liabilities

3.1 Capital Accounts

3.2 Current Liabilities

3.3 Accounts Payable

4. Verify the Opening Balance

Once all assets and liabilities have been imported, the balance of Temporary Opening ledger should be zero.

5. Related Topics 

1. Chart of Accounts
2. Journal Entry
3. Payment Entry
4. Payment Reconciliation