When initializing your accounting records in Manager, it's important to set up starting balances for your balance sheet accounts. This ensures that your financial statements accurately reflect your business's financial position from the start date.
To enter a starting balance for a balance sheet account, follow these steps:
Navigate to the Starting Balance - Balance Sheet Account form. This is where you'll input the necessary information to set up your starting balance.
The form includes the following fields:
Select the balance sheet account for which you want to set a starting balance. This account should already exist in your Chart of Accounts. Ensure you've created all necessary accounts before attempting to enter starting balances.
Specify whether the starting balance is a Debit or Credit amount:
Understanding whether an account is increased by debits or credits is crucial for accurate bookkeeping.
Enter the amount of the starting balance for the selected account. This should reflect the account's balance as of your start date in Manager.
After filling in all the fields, review the information for accuracy. Once confirmed, save the form to apply the starting balance to the account.
By carefully entering starting balances for your balance sheet accounts, you'll ensure that your financial reports provide a true and accurate reflection of your business's financial standing from the outset.