Opening balances

Opening balances represent the financial position of your company on the day before you start using Sage One Cashbook. 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 can’t give you a true picture of your financial position. You can enter opening balances for the value of your bank accounts when you first set up your accounts.

When you enter your opening balances, you should always use the day you want to start using Sage One Cashbook. For example, if your financial year starts in January, you should enter your opening balances using 1 January. Opening balances are then posted with the date of 31 December, which is the last day of your previous financial year. If you’re starting part way through your financial year, enter the date you want to start processing, for example 1 June. Opening balances would then be posted using 31 May.

To enter your opening balances

  • 1. Settings > Cashbook 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 Cashbook. Any opening balances entered here are automatically marked as checked. You might have uncleared items that are yet to appear on your bank statement that you can’t check yet, for example a cheque you’ve paid in to your account that has yet to clear. If you have uncleared items, you can enter these separately so you can check the transaction when you receive your next bank statement.

When you first set up, 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.

  • 4. Click Save.

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

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