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 if you're launching a new company and want Geer ERP to update your offline balances.

1. Introduction

If your business is new, you won't have many opening balances to import. However, you will have a lot of data to be imported as an initial balance if you are moving from a traditional accounting system like Tally or a Fox Pro-based program.

We advise that you begin using Geer ERP for accounting at the beginning of a new fiscal year, but you are also welcome to begin in the middle. For the "day" you begin utilizing accounting in Geer ERP, you will require the following to set up your accounts:

Assets

1. equity assets (stock in hand).
2. such as furniture, computers, etc., are fixed assets.
3. Unpaid invoices that you have sent to your customers are referred to as Accounts Receivables (AR).
4. Current assets include cash on hand, deposits, and bank balances.

Liabilities

1. Capital accounts such as your owner's or shareholder's capital
2. current obligations, such as loans and salary obligations,
3. Unpaid invoices from your vendors, or accounts payables (AP),

If you previously used another accounting program, you should first conclude financial statements in that program. The opening balance in the Geer ERP should be updated to reflect the accounts' closing balance. Make sure your chart of accounts contains all the necessary accounts before beginning to update the opening balance.

Geer ERP's Opening Invoice Creation Tool may be used to create opening entries.

Opening entry is only for 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.