Setting Opening Balance for an Asset or Liability Account e.g. Account Receivable or Payable
FireFly5
Member Posts: 1
Please guide me as how to set up an initial balance for one of my receivable accounts
0
FireFly5
Member Posts: 1
Please guide me as how to set up an initial balance for one of my receivable accounts
Comments
@FireFly5.
You'd just recreate anything outstanding in Wave. So unpaid invoices and unpaid bills. The won't show up in your reports for that specific customer or vendor otherwise.
If you just want to keep track of the number, you could just create journal transactions. If it's an invoice, you debit Accounts Receivable and credit Sales, I think...
An opening balance for a corporation or a proprietorship is important. In Canada, the opening balance sheet entry for a corporation must be reported on a T2Sch101. The CRA wants to know how the business is capitalized and if the shareholder(s) took back FMV for their initial investment in the company.
The opening balance sheet is also important because fixed assets are listed and these can be amortized -- a deduction for accounting purposes.