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        <a class="WebWorks_Breadcrumb_Link" href="companyfile.4.1.htm#1091721">Setting up your company file</a> &gt; Enter account opening balances</div>
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      <blockquote>
        <div class="hs_SectionHeading"><a name="1091721">Enter account opening balances</a></div>
        <div class="b_Body"><a name="1091722">Account opening balances are the balances of your accounts as at </a>the first day of your conversion month.</div>
        <div class="bnF_NoteHeadingFirst">
          <span class="N_007eNoteCautionWarning">note : </span><a name="1091723">Do you need to complete this task?</a></div>
        <div class="bnL_NoteBodyLast"><a name="1091724">If you were in </a>business prior to your conversion month, most of your accounts probably already have balances. If you want to produce financial reports that included these balances (such as a balance sheet), or you want to track the balance of accounts with a cumulative balance (such as your bank account), you need to enter these balances. </div>
        <div class="b_Body"><a name="1091725">You can find your account opening balances on a trial balance </a>report, a balance sheet or a profit &amp; loss report prepared for the period immediately prior to your conversion date. You can ask your accountant to prepare these reports.</div>
        <div class="b_Body"><a name="1091726">You may also be able to find your account opening balances </a>using your previous accounting software or paper-based records.</div>
        <div class="b_Body"><a name="1091727">The balances you enter depend on whether your conversion </a>month is also the first month of your financial year. If your conversion month:</div>
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                <div class="bb_Bulleted_inner"><span class="eb_EmphasisBold"><a name="1091728">is the first month of your financial year</a></span>, enter the opening balances of your asset, liability and equity accounts only. The opening balances of your income, cost of sales and expense accounts should be zero.</div>
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                <div class="bb_Bulleted_inner"><span class="eb_EmphasisBold"><a name="1091729">is not the first month of your financial year</a></span> (for example, if your financial year starts in July but your conversion month is September), enter the opening balances of <span class="ei_EmphasisItalic">all</span> your accounts.</div>
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        <div class="hr_RunInHeading"><a name="1091731">Opening bank account balances</a></div>
        <div class="b_Body"><a name="1091732">You can enter the following </a>amounts as the opening balance of a bank account:</div>
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                <div class="bb_Bulleted_inner"><a name="1091733">the bank account balance that appears on your balance sheet </a>or trial balance reports as at the day prior to your conversion date. For example, if your conversion date is 1 July 2008, this is the bank account balance as at 30 June 2008. </div>
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        <div class="bbc_BulletedContinued"><a name="1091734">These reports can be provided by your accountant, or, if you </a>were previously using another accounting software, printed using that software.</div>
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                <div class="bb_Bulleted_inner"><a name="1091735">the cashbook balance of the account as at the end of the day </a>prior to your conversion date. You can calculate your cashbook balance by taking into account the transactions not yet cleared by your bank as at the conversion date and the balance that appears on your bank statement at that date. </div>
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        <div class="bbc_BulletedContinued"><a name="1091736">For example, assume that $500 worth of deposits and $1000 </a>worth of payments were uncleared as at your conversion date (that is, they had not appeared on a bank statement). The cashbook balance would be calculated as shown below:</div>
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              <div class="t_TableBody" style="color: #000000; font-size: 7.5pt; text-transform: none;"><span class="eb_EmphasisBold"><a name="1091739">Bank statement balance as at the conversion date</a></span></div>
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              <div class="t_TableBody" style="color: #000000; font-size: 7.5pt; text-transform: none;"><span class="eb_EmphasisBold"><a name="1091741">$21,000.00</a></span></div>
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              <div class="t_TableBody"><a name="1091743">ADD uncleared deposits</a></div>
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              <div class="t_TableBody"><a name="1091745">+ $500.00</a></div>
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              <div class="t_TableBody"><a name="1091747">SUBTRACT uncleared payments</a></div>
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              <div class="t_TableBody"><a name="1091749">–</a> $1,000.00</div>
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              <div class="t_TableBody" style="color: #000000; font-size: 7.5pt; text-transform: none;"><span class="eb_EmphasisBold"><a name="1091751">Cashbook balance as at the conversion date</a></span></div>
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              <div class="t_TableBody" style="color: #000000; font-size: 7.5pt; text-transform: none;"><span class="eb_EmphasisBold"><a name="1091753">$20,500.00</a></span></div>
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          <span class="N_007eProcBullet"></span><a name="1091755">To enter opening balances</a><script type="text/javascript" language="JavaScript1.2">WebWorks_WriteArrow(WebWorksRootPath, "wwdd1091755", false);</script></div>
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                <div class="bs_BodyStep_inner"><a name="1091756">Go to the </a><span class="w_Widgets">Setup</span> menu, choose <span class="w_Widgets">Balances</span> and then <span class="w_Widgets">Account </span><span class="w_Widgets">Opening Balances</span>. The <span class="w_Widgets">Account Opening Balances</span> window appears.</div>
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                <div class="bs_BodyStep_inner"><a name="1091759">Enter the balances in the </a><span class="w_Widgets">Opening Balance</span> column.</div>
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        <div class="bnfi_NoteHeadingFirstIndent">
          <span class="N_007eNoteCautionWarning">note : </span><a name="1091760">Enter opening balances as positive numbers</a></div>
        <div class="bnLi_NoteBodyLastIndent"><a name="1092814">Don’t, </a>for example, enter your liability account balances as negative numbers. Enter negative amounts only if accounts truly have negative balances. As a rule, these will be asset accounts that record accumulated depreciation.</div>
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                <div class="bs_BodyStep_inner"><a name="1091768">Check that the amount in the </a><span class="w_Widgets">Amount left to be allocated</span> field at the bottom of the window shows $0.00. </div>
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        <div class="bsc_BodyStepContinued"><a name="1091769">If this field displays an amount other than $0.00, check your </a>opening balances again because they are either incomplete or incorrect. However, you can continue the setup process if there is an amount in the <span class="w_Widgets">Amount left to be allocated</span> field. The amount will be assigned to a special equity account called Historical Balancing.</div>
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                <div class="bs_BodyStep_inner"><a name="1091770">Click </a><span class="w_Widgets">OK</span>.</div>
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        <div class="href_ReferenceBlockHeading"><a name="1115790">Related Topics</a></div>
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                <div class="bbi_BulletedIndented_inner"><span class="l_Link"><a href="companyfile.4.5.htm#1091452" name="1115794">Set up accounts</a></span></div>
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