Opening Balances

Any business that has recently switched to Zoho Books from another accounting software or from manually maintained books of accounts, will have to ensure that all details from the previous accounts are brought in. This includes all their previous inventory levels, sales and purchase details, customers and vendors, income and expense statements, miscellaneous journal entries and a lot more.

To ensure that all the data from your previous accounting software is available once you’ve switched to Zoho Books, you will have to enter all your opening balances.

Note:

In this page:


Points to Note Before Entering Your Balances:


Entering Opening Balances

Zoho Books by default has a list of accounts that are common to all businesses. The accounts are grouped into Accounts Payables and Receivables, Assets, Expenses, Liabilities, Bank Accounts, Equity and Income. Each account category has multiple accounts under them.

To enter your opening balances:

Entering Accounts Receivable Balances:

This is the closing balance of your accounts receivable from your customers in your previous accounting system. You can add the opening balance in one of the following ways:

Import opening balances of customers:

If you have already added your customers, you will be able to import only their balances in the Opening Balances page. To do this:

Import Balances

Choose File

Import Balances

This will import all the opening balances of your customers and map them with the respective customers.

(or)

Import your customers along with their opening balances:

The easiest way to enter your opening balances is while you import your customers to Zoho Books. As you import your customers for the first time, you can also enter their balances there by saving your time from doing it again. To do this:

Import Customers

Balances and Decimals

All your customers along with their outstanding opening balances will be imported to Zoho Books.

(or)

Enter opening balances of customers individually:

If you want to enter the opening balances individually, you can do it while you create or edit a customer.

To enter opening balances for a new customer:

Other Details

The outstanding opening balance will be available in the Overview tab of your contact’s details section.

To enter opening balances for an existing customer:

Insight: Outstanding Receivables in the contact overview page contains the total amount the customer owes you (for the invoices created) and also includes the outstanding opening balance you had added initially.

Balances for Existing Customers

If you would like to update the opening balance you had entered already, click Update and in the dialog box, enter the updated Opening Balance.

Update Balances

Insight: Outstanding Opening Balance is the balance the customer owes you excluding the amount from the sales transactions created for them in Zoho Books. Each time you record a payment received (apart from the ones you record for the invoices you created in Zoho Books), the outstanding opening balance reduces.

Entering your Accounts Payable balances:

This is the closing balance of the amount payable or the amount you owe your vendors in your previous accounting system. To enter them:

Other Accounts

Insight: Based on the transactions or journals you’ve already created or imported from your previous system, Zoho Books calculates your Available Balance. It includes all the transactions that were entered before the Opening Balance Date you’ve stated here.

Entering Opening Balances for Other Accounts:

Other accounts include your assets and liabilities, income and expenses, bank balances, and equity. To enter them:

Other Accounts

Debit/Credit

Continue

Confirm

Once you have updated all your balances, you will still be able to create transactions before the opening balance date using the Sync option.

Scenario: Let’s say your opening balance date is Feb 6 2019 and you’ve missed to record a bill that was dated Dec 1 2018. You can immediately record the transaction in the bills page. The Sync option in the opening balances page sync all your data created before your opening balance date and adjust your balances accordingly.

Sync Accounts

You will also be able to make changes to your pre-dated transactions or delete them and sync your balances.

Creating New Accounts

In case your business deals with accounts other than the default accounts, you can create new accounts. To create a new account:

Insight: An account code is a unique combination of numbers and assigned to an account that can help to identify them.

New Account

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