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.

Insight:
  • If you're switching to Zoho Books at the end of your financial year, all the closing balances of the previous year will be entered as your opening balances for the current year in Zoho Books.
  • If you're switching to Zoho Books at during any time of the financial year, you can generate a Trial Balance to identify all the debit and credit balances of your accounts.

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 and Accounts Payable Balances:

Opening Balance of Accounts Receivables is the closing balance of amount receivable or the amount your customers owe you in the previous year. Whereas, the Opening balance of Accounts Payable is the closing balance of the amount payable or the amount you owe your vendor in the previous account year. To enter the opening balance of accounts receivables and accounts payables:

Cancel Items

In case of foreign currency:

Cancel Items

You could be carrying over your customer balances when you are migrating from another accounting application. Here’s how you can add opening balances for your customers to change the Accounts Receivable opening balance:

The invoice created would be in the Overdue status. Now, the amount on the invoice is pending for them and acts as the opening balance for the customer. Similarly, you can create opening balances for your vendors.

Insight:
  • While creating invoices for  Accounts Receivables opening balances, select the invoice date before the Opening Balance Date that you've entered while setting up your organisation.
  • Do not change the  Quantity of items in the invoice for entering the opening balance of your customers, otherwise it will affect your inventory. You can change the  Amount to the opening balance amount in the invoice.

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 missed recording a bill earlier on 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.

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.

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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