Opening Balance (OB) is the balance forwarded at the beginning of the new financial year or at the beginning of new accounting software. To create an OB, you need Trial Balance, Aged Payable (AP), and Aged Receivable (AR) Reports of your company.
Whether you are new to the accounting software or just moving to SlickPie, you would need to set up the following before creating an opening balance in SlickPie:
Once all the details have been added to your account, you are ready to add create Opening Balance.
Please note We highly recommend consulting your accountant before doing entering the opening balance. It is a very important step and the status of the reports highly depends upon the entries made.
Say, Paula Walker is starting a new account in SlickPie on Jan 1, 2017. She has the following reports (closing balance) from Dec 31, 2016.
To create the Opening Balance:
1. Go to Company.
2. Select Opening Balance.
3. Enter the Reference.
4. Select the Date. It depends upon your Financial Year.
5. With Trial Balance, AR and AP figures in hand, she will enter all the details one by one.
Please remember Income and Expense account balances for the previous year will be recorded as Retained Earnings. That is it will be Retained Earnings + Income - Expenses ($12701.35 + $10,800.00 - $8,953.79 = $14,547.56).
Features in Opening Balance
If you want to use the Reference text as Description in all entries, select Default Reference. Although selecting this option will add the same text as in Reference but you have the option to edit the description if need be as shown in two pictures below.
This is default description
This is edited description
Accounts Receivable/ Payable
Select the contact and add the Debit or Credit. If it's AR, the amount should be Debited and if it's AP, the amount should be Credited.
Adding a new contact
If you do not have the contact in the list, you can add one right while creating the Opening Balance. You can add just a name on the fly or add a new contact:
1. Click Add New in Contact.
2. Add Details and click Done.
Please note If you do not have a contact in the list while creating a transaction, you can add it on the fly. That is you type the name in the field and it will be automatically saved. You can make the desired changes as and when needed in People.
Adding a bank account
You can add a new bank account while adding the opening balance. To add a bank account:
1. Click Add New in Account.
2. Enter the details and click Done.
Make sure to save the entries as soon as you start entering them. You can save the entries as a Draft if left unfinished or needs to be proofread before finalizing.
Once finalized, click Post.
Once the OB is posted, you can Edit the entries, Delete them or View Payments.
If you made any changes, click Update to save those changes.
If you receive a payment from the customer, you have to receive it against the OB. Click Receive Payment to get more details. Once the payment received, you will be able to see it in OB by clicking View Payments.