What is an Opening Balance and Why is it Important?
When switching from another accounting software to Cybooks, it's important to carry over your existing financial data correctly. One key part of this process is setting up your Opening Balance.
What is an Opening Balance?
The Opening Balance is the amount of money in your accounts at the start of using your new software. It represents the financial position of your business at a specific date - usually the day you stop using your old software and start using Cybooks.
Why Do You Need an Opening Balance?
Setting up an accurate Opening Balance ensures that your financial reports, bank balances, and outstanding invoices match your previous records. This way, you can continue tracking your income, expenses, and financial health without starting from scratch.
Where Does the Opening Balance Come From?
Typically, the Opening Balance is taken from your Trial Balance in your old accounting software. The trial balance lists all your account balances (assets, liabilities, equity, revenue, and expenses) as of a specific date. By transferring this data correctly, you ensure that your financial records remain accurate in Cybooks.
What Does an Opening Balance Include?
Your Opening Balance typically consists of:
Bank account balances (how much money is in your accounts)
Outstanding invoices (money customers owe you)
Unpaid bills (money you owe to suppliers)
Assets (equipment, inventory, or property your business owns)
Liabilities (loans, credit card balances, or other debts)
Equity (your business’s retained earnings and owner’s investments)
Enter the opening balance in Cybooks
To enter the opening balances:
Go to the settings via the Settings button in the header
Within the 2nd sidebar, click on Opening Balances
Next click the Edit button to enter your opening balances.
Migrate Date / Date of opening balance
If you click on the button Migration Date you can select the month from where you want to migrate to Cybooks.
The migration date - or date of the opening balances - will be automaticlly always the last day of the month before.
Example: If you select May as your migration date, you have to enter the opening balances for the 29th of Februrary.
