Enter an opening balance for a bank account

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

It can also be the balance of a new bank account you have just opened. 

You can enter Opening balances at the same time as creating a bank account. Alternatively add them later from the Business Settings.

Before you start

• Check your Accounts Start Date is correct. Go to More, then Business Settings, and select Accounting dates and VAT
• Create your bank accounts, including any loan and credit card accounts. See how to add or edit a bank account here >
• Gather your bank statements and a list of any bank transactions that don't yet appear on your bank statement

What you need to know

The purpose of the opening balance is to make sure the bank balance shown in Accounting Start matches the balance in your actual bank account. This is before you start adding more transactions.

Getting your opening balance correct will help to make sure that you can accurately reconcile your bank account.

• Use the amount from your bank statement on the day before you started using Accounting Start
• The date you use for your opening balance must be before the date set as your Accounts Start date. Usually, the day before
• Don't use the amount from your trial balance. This is because it may include transactions not yet reflected on your bank statement
• Enter a positive bank balance as a Receipt (Debit)

• Enter a negative bank balance for overdrafts, loans, and credit cards as a Payment (Credit)

Enter the opening balance

1. From More, select Business Settings.
2. In the Opening Balances section, select Bank.
3. Check the Accounts Start Date is correct. 
    NOTE: If it isn't correct select the date and change it as required, then select Save. Then start again from Step 1.
4. Enter the details of the opening balance.
5. Date - the date must be before your Accounts Start Date. Ideally the day before.
6. Type - choose whether your balance is a Debit (positive amount) or a Credit (negative or overdrawn amount)
7. Select Save.

Once you save it, the balance shown on the bank accounts will update to include the opening balance.

An opening balance transaction shows on your bank activity, ready to reconcile.

Adjust the opening balance

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

1. From More, select Business Settings.
2. In the Opening Balances section, select Bank.
3. Find the relevant opening balance and adjust it.
4. Select Save.

If you have reconciled the opening balance, you can't amend it. Delete the opening balance instead and re-enter it.

Delete a reconciled opening balance

1. From Banking, select the relevant bank account.
2. From the Activity tab, select the tick box to the left of the transactions you want to delete.
3. A toolbar now appears above the list.
4. From the toolbar, select the Delete icon.
   
   

Reconcile an opening balance

We recommend that you reconcile your opening balance straight away. This makes sure that your bank balance is correct. It also matches the opening balance from your bank statement when you do your first reconciliation.

1. From Banking, open the relevant bank account.
2. Select Reconcile.
3. Set your Statement Date. Change this to the date of your opening balance. This will filter out any subsequent transactions. Making it easier to find your opening balance transactions.
4. Enter the Statement End Balance. This is the total amount of your opening balance.
5. Enter a Reference. This is just a label for the reconciliation. If you use 'Opening Balance' this will distinguish it from other reconciliations.
6. Choose Apply.
7. You'll then see your opening balance. Select Reconcile next to the transaction.
8. Select Finish to complete the reconciliation.
9. Select Print to print details of the reconciliation.