The following article outlines how to create Opening Balances for your KashFlow account using the Trial Balance data of your previous bookkeeping and/ or accounting system.
If you want to create an Opening Balance for your Customers or Suppliers without using your previous Trial Balance you may want to refer to the article here.
If you want to create an Opening Balance for your Bank Account, or Loans without using your previous Trial Balance, you may want to refer to the article here.
You will first need to create your Suspense Account Nominal Code, this is intended to handle your Debtor and Creditor Control Accounts as you are unable to post Journal entries directly to these codes.
- Go to Settings > Chart Of Accounts > Show advanced configuration options (located beneath the table of Nominal Codes)
Therein select the following:
- Allow me to access all codes in all areas – not just Sales Codes in the Sales area and so on.
- Allow me to configure Fixed Assets, Cost of Sale (etc) options directly on the page where I edit nominal codes instead of just from this page
- Enable the journal (a link will show in the main menu for it)
Finally, choose to Update
- Next, go to Bank > Bank Codes
Herein beneath the table of existing codes, in the blank field enter “Suspense Account” with a code of 9999, then finally + Add Bank Code
You have now enabled the Journal, enabled all types of Nominal Codes to be accessed in all areas, and created a Suspense Account.
Please note, the Name and Code can be anything you want to best suit your preferred method of record keeping.
Debtors and Creditors
KashFlow does not permit direct postings to the Debtors Control or Creditors Control accounts via the Journal. This means that you are required to create an Invoice/ Purchase with a Line Item set against your new Suspense Account Nominal Code to define an Opening Balance for your Customers, and Suppliers respectively.
Debtors (Customers and Invoices)
You will first need to create an Invoice and Customer to record the Debtor Opening Balance:
Invoices > +Create > Create a customer named ‘Opening Balances’ by clicking the ‘+’ icon on the customer field > Add a line item
You should then enter the following:
- Sales Code – Select Suspense Account
- Rate – This should be the amount of your Debtors figure
- VAT Rate – This should be N/A as the VAT will already be accounted for in your Opening Balance Journal (if you are recording the Opening Balances of your VAT Liabilities, too)
When ready, click Save. Your Trial Balance for the Debtors Control Account will now have this figure recorded.
Creditors (Suppliers and Purchases)
You will first need to create a Purchase and Supplier to record the Creditor Opening Balance:
Purchases > +Create > Create a supplier named ‘Opening Balances’ by clicking the ‘+’ icon on the supplier field> Add a line item.
You should then enter the following:
- Purchase Code – Select Suspense Account
- Rate – This should be the amount of your Creditors figure
- VAT Rate – This should be N/A as the VAT will already be accounted for in your opening balance journal
When ready, click Save. Your Trial Balance for the Creditors Control Account will now have this figure recorded.
Entering the Journal
The next step is to enter in the Opening Balance Journal. This is your Trial Balance as of the date you are switching from your previous accountancy software to KashFlow, though you can simply use it to create an Opening Balance figure for your Bank Accounts/ Loans and any particular other Nominal Codes/ Accounts you wish to.
Creating the Journal
Start by going to Journals > +Create.
- Date – this needs to be the date of your Trial Balance, or the date you wish to start recording data within KashFlow
- Category – this should be “Standard Journals”
- Comment – Enter ‘Opening Balances’ or anything you feel best represents the journal for your records
When ready, click Create Journal.
Entering the balances
Using the next page to enter in your opening balance journal
- Type – Select the Nominal Code using this drop down (for instance, if you wish to define an Opening Balance for your default Bank Account you may select Nominal Code “1200 – …”)
- Narrative – This will simply be the Description of the monetary movement when viewing the Nominal Codes history
- Debit – This is the column you will put in any amounts you wish to give the Nominal Code account
- Credit – This is the column you will put in any amounts you wish to take from the Nominal Code account
When you get to the Debtors & Creditors figures, select Suspense Account, then when you are ready, finalise your Journal by choosing to Save Changes.
Please note, a Journal must always balance, as if values are supplied to one account they must be recorded as being taken from another, the reverse also applies.