Enter an opening balance for a bank account

Add an opening balance for a new bank or credit card account. This could be for

  • The existing balance of your bank or credit card when you first start using Accounting.

  • The balance of a new account that you're adding to Accounting when you've been using it for a while.

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

Opening balances can be entered at the same time as creating a bank account or added later from the Settings.

Before you start

  • Check your VAT Scheme and Accounts Start Date is correct.
  • Create your bank accounts, including any loan and credit card accounts.
  • Gather your bank statements and a list of any unrepresented bank items. These are bank transactions you’ve entered in your previous system but have yet to appear on your bank statement, such as uncleared cheques or recent payment and receipts.

What you need to know

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

Getting your opening balance correct will help to make sure that you can reconcile your bank account successfully from now on.

  • Use the amount from your bank statement on the day before you started using Accounting.

  • The date you use for your opening balance must be before the date set as your Accounts Start date.

  • Don't use the amount from your trial balance as this 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 your opening balance

  1. Go to Settings, then Business Settings.
  2. In the Opening Balances section, select Bank.
  3. Check the Accounts Start Date is correct.

    If it isn’t, click the date. Then change it as required and click Save.

  1. Complete the following information

    Bank Account Choose the relevant bank account.
    Date * This date must be before the Accounts Start Date entered in Settings > Accounting Dates & VAT.
    Type *

    Choose whether the balance is

    • Receipt (debit) - positive amount

    • Payment (credit) - overdrawn amount.

    Opening Balance * Enter the total balance from your bank statement as at the date used for your opening balance

    * These details are compulsory.

  1. Repeat the previous step on the next available lines until you’ve entered the opening balances for each of your bank accounts.

  1. Click Save.

You’ve now entered your bank opening balances.

  • The balance shown on your bank account is updated,

  • An opening balance transaction shows on your bank activity, ready to be reconciled.

Adjust the opening balance

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

If you haven't reconciled your opening balance, simply go to the Settings and change the amount or use the bin icon to delete it.

If you have reconciled the opening balance, you can't amend it but you can add another opening balance to adjust the total. For example, if you entered an opening balance of £100 and it should have been £110, simply add an additional opening balance for £10.