Opening Balance in Accounts

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 OneHash.

1. Introduction

If you are a new company, you will have minimal opening balances to be imported. However, if you are migrating from a legacy accounting system like Tally or a Fox Pro based software you will have considerable data to be imported as opening balance.

We recommend that you start using OneHash for accounting from a new financial year, but you could start midway too. To set up your accounts, you will need the following for the “day” you start using accounting in OneHash:

Assets

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

Liabilities

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

If you were using another accounting software before, you should close financial statements in that software first. The closing balance of the accounts should be updated as an opening balance in the OneHash. Before starting to update opening balance, ensure that your Chart of Accounts has all the Accounts required.

Opening entries can be created using the Opening Invoice Creation Tool in OneHash.

Opening entry is only for Balance Sheet accounts and not for Profit and Loss Accounts.

2. Opening Balance of Assets

Fixed Assets

Stock Assets

Accounts Receivable

Current Assets

3. Opening Balance of Liabilities

Capital Accounts

Current Liabilities

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
Chart of Accounts
Journal Entry
Payment Entry
Payment Reconciliation

Updated on: 31/01/2022