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Setting Opening Balance for an Asset or Liability Account e.g. Account Receivable or Payable

FireFly5FireFly5 Member Posts: 1

Please guide me as how to set up an initial balance for one of my receivable accounts

in Accounting Technical Support

Comments

  • J_SennJ_Senn Member Posts: 17

    @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...

  • Bruce_C49Bruce_C49 Member Posts: 38

    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.

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