Opening balances

Opening balances represent the financial position of your company on the day before you start using Sage One. Whether you’re just starting your business or changing from another accounting system, you’re likely to have opening balances. Without accurate opening balances, the reports produced by Sage One can’t give you a true picture of your financial position.

In Sage One Accounts you can enter opening balances for:

  • Outstanding customer transactions
  • Outstanding supplier transactions
  • Bank account balances

If you have additional nominal ledger account opening balances to enter, your accountant can post these on your behalf. To do this, you can invite your accountant to access your data and post the opening balances using journals. Or, if you want to post journals yourself you can upgrade to Sage One Accounting.

When to enter your opening balances

We recommend you start using Sage One from the start of a new accounting period, whether this is a new tax month or quarter, or the start of your financial year. You should also submit your final VAT Return using your previous system.

When you enter your opening balances, you need to enter the date you want to start your Sage One accounts and balances. For example, if your financial year starts in January, you should enter 1 January. Sage One then posts your opening balances with the date of 31 December, which is the last day of your previous financial year.

If you’re starting to use Sage One part way through your financial year, enter the date you want to start processing in Sage One. For example, 1 June, Sage One posts your opening balances using 31 May.

In order to enter your opening balances, you need a list of your outstanding customer and supplier invoices, your closing trial balance from your previous accounting system and your bank statements. You also need a list of your unrepresented bank items. These are transactions you’ve entered in your previous system but have yet to appear on your bank statement, for example, uncleared cheques.

Before you enter your opening balances, you should create your customer, supplier and bank account records.

To enter your opening balances

  • 1. Settings > Accounts Settings > Financial Settings > Opening Balances.
  • 2. Enter the date you want to use for the opening balances > Next.
  • 3. Enter the opening balances for your bank accounts > Next.

Your bank account opening balance is the cleared amount as at the day before you started using Sage One. Any opening balances entered here are automatically marked as reconciled. You might have uncleared items that are yet to appear on your bank statement that you can’t reconcile yet. For example, a cheque you’ve paid into your account that has yet to clear. If you have uncleared items, you can enter these separately so you can reconcile the transaction when you receive your next bank statement.

When you first set up Sage One, two default bank accounts are created for you, a current account and a cash in hand account. If required, you can set up extra accounts, for example, you might want to include a credit card account. To do this, click the Create a new account link > complete the relevant information > Save.

Repeat this for each individual outstanding invoice.

The invoices entered here are those that are outstanding at the date you entered at step 2, and should be entered with the original invoice date. If you have any invoices raised after this date, they should be entered in the Sales or Purchase Invoice area of Sage One.

Repeat this for each individual outstanding invoice.

  • 6. Click Save.

You’ve successfully entered your opening balances. If you need to enter uncleared items for your bank account, you can enter these as other expenses or income.

To edit your bank opening balances

  • 1. Settings > Accounts Settings > Financial Settings > Opening Balances > Next.
  • 2. Enter the correct opening balance amount for the relevant bank account > Next > Save.

You’ve successfully edited your bank opening balances.

To delete an unpaid sales or purchase invoice opening balance

  • 1. Settings > Accounts Settings > Financial Settings > Opening Balances > Next > Next.
  • 2. Click the delete button, next to the relevant unpaid invoice.
  • 3. Enter a void reason > Save > Save.

You’ve successfully deleted your sales or purchase invoice opening balance.

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