Quicken & Other Budget/Accounting Software/Opening Balance

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Question
hi,
Assume the company has been doing the accounts manually (excel) and decided to start the new year accounts fresh using accounting system.

The company financial year - April 2012 to March 2013

My question :

1) How do i enter the opening balance in the chart of account?
2) Do i need to enter the opening balance on each of every item on the COA? e.g Project A Cost of Sales, Furniture & fittings at cost & Deprn, trade creditors, accruals & other payables etc..
3) I have the 2011 audited accounts, so do i need to follow the amounts as at 31.3.2012 to treat as the opening balance to start in April 2012? Audited or unaudited accounts?

Answer
1) How do i enter the opening balance in the chart of account?

Use a Journal entry with balances 3/31 for every account except the bank accounts, A/R, A/P
For bank accounts, enter a JE for the balance as of 3/31  as shown on the bank statement
 and enter a check for each outstanding check on the 3/31/ bank rec
 when done the balance should agree to your book balance

2) Do i need to enter the opening balance on each of every item on the COA?
To save time you only need to enter the balances for balance sheet chart of accounts.
 The offset is retained earnings.

When you are all done you can check your work to see if retained earnings 4/1 this year
in the old software agrees to 4/1 retained earnings in the new software.

3) I have the 2011 audited accounts, so do i need to follow the amounts as at 31.3.2012 to treat as the opening balance to start in April 2012?  I would assume that the audited
financials contain adjustments you want in your books, but this question should be addressed
to the accountant that prepared the Audit report.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
www.qbalance.com

We sell and support QuickBooks Enterprise
http://www.qbalance.com/enterprise_quickbooks.htm

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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