While migrating from existing accounting software to Zoho Books, you need to ensure that the transition is flawless, that all prevailing data such as journal entries, records, expense and income statements etc, has been recorded and continuity in financial statements is maintained. To ensure this, an opening balance needs to be calculated.
Zoho Books provides predefined list of accounts, which needs to be filled in to get the opening balance. Using the trial balance report in your existing accounting system, enter the credit and debit balances for all the accounts. Ensure that the balances are entered as on the date of migration. All bank and credit card accounts including foreign accounts need to be included.
Entering Opening Balances
To enter Opening Balances, go to More Settings as shown on the image below. Click on Opening Balances on the Settings page.
Enter relevant balances for all the accounts, using the trial balance report in your existing accounting system. Ensure that the balances are entered as on the date of migration.
In case a particular account is not available in the predefined list you may add an account to be included in the opening balance. To add an account, follow these steps:
- Go to the Accountant tab and select Chart of Accounts.
- Click on the + New Account button and the Create Account screen will appear as shown in the screen below.
- Provide the Account Name.
- Mention the Account Code, if necessary.
- Select the Account Type from the options provided.
- Enter a description, if desired.
- Click on the check box to add this account on the watch list of your dashboard. This will track your account’s transaction and present an overview.
- Click Save to publish and exit.