Entering opening balances – the unavoidable task when switching accounting software. The pressure might start to build, especially if the chart happens to be more bloated than a loaf of rising dough from a previous life. But fear not. In NOCFO, handling the chart and entering opening balances has been made relatively easy.
First, navigate to the 'Accounts' tab, where the company's actual chart of accounts for accounting is located. By default, the account page displays some basic accounts for both the Balance Sheet and Income Statement.
For mass editing, it's advisable to use the tabular view, which you can access by clicking the tabular icon under adding a new account. In the tabular view, you'll find a chart of accounts template with more accounts than you'll likely ever need. Don't be alarmed by the number of accounts, as most of them will probably never be used. In this view, you can choose which accounts are displayed on the account page and edit account information.
In the editing view, you can do the following:
New account: Adding a new account to the chart template. Show: Determines whether the account is displayed on the account page. Number: Editing the unique account number. Name: Editing the account name. Type: Default selection based on the account's nature. More information about account types can be found in the 'Accounts' section. tilit VAT and percentage: Default VAT treatment and percentage for the account. More detailed information about VAT treatments can be found in the 'Accounts' section. tilit Opening balances If the company has had previous operations, opening balances need to be entered for the existing accounts.
All choices related to account settings can always be edited later, either from the tabular view or from under each individual account.
The idea behind opening balances is to bring existing accounting information from the old program to the new program. In the simplest case, you enter the current Balance Sheet data (either at the end of the financial year or during the financial year) directly into NOCFO as opening balances. The program essentially continues the calculation from where the previous program left off. If the financial year is still ongoing, you can also enter opening balances for the Income Statement accounts. Opening balances for purchase transactions should be entered as negative values, so that the service calculates the Income Statement correctly. If there are relatively few transactions, you can also enter Income Statement transactions on a transaction and monthly basis in the service, so that analytics and reports are displayed correctly on a monthly basis in NOCFO.