Setting Your Initial Capital, Opening Balance and Closing Balance

Initial Capital

If you are just starting your business, you may need to record a special accounting transaction for your initial capital. To do so, you should use "New Accounting Transaction " (available only after enabling CPA mode within User Settings ).

Example:

You are starting your company and investing $10,000.

Make sure you have your company bank account recorded in OneUp. You can view the list of your banks in the menu "Accounting"
Next, Open the action, "New Accounting Transaction".
Record the transaction as:

DEBIT: Bank Account 10,000
CREDIT: "Paid in Capital" 10,000

Opening and Closing Balance

Create an accounting transaction in Accounting - More - Accounting Transactions, set your opening balance date and name the transaction, so, you can identify it later.

Register all of your debit and credit amounts for your asset and liability accounts and also post the profit or loss into the corresponding account from your chart of accounts.

Example:

Balances from your former accounting application:

Bank	1000	in your favor = debit balance
Accounts Receivables	500	in your favor = debit balance
Other Assets	500	in your favor = debit balance
Inventory	1000	in your favor = debit balance
TOTAL ASSETS	3000

Accounts Payables	200	your debt = credit balance
Other Liabilities	100	your debit = credit balance
Loans	200	your debt = credit balance
Capital	1000	your debt = credit balance
Profit	1500	in your favor = credit balance (loss would be a debit balance)
TOTAL LIABILITIES	3000

You would then set up an accounting transaction like:

Tip:

If you need to create an opening balance as of 01/01, but want to set up balance sheet as well as P&L, it might be best to create this accounting transaction for all balances as of 12/31 (previous year) and then use the year end closing, that will allow you to start with opening balances into the new year.

You would then just set up ALL balances from your balance sheet as well as your Profit and Loss Statement. From the nature of accounting, the transaction would be balanced and the year end closing would post your profit and loss into retained earnings for the new year.

You would need to set up your accounting transaction:

All debit balances from your balance sheet = debit entries in the transaction
All credit balances from your balance sheet = credit entries in the transaction
All debit balances from your P&L = debit entries in the transaction
All credit balances from your P&L = credit entries in the transaction

BALANCE SHEET
Bank	1000	in your favor = debit balance
Inventory	500	in your favor = debit balance
TOTAL ASSETS	1500

Accounts Payables	100	your debt = credit balance
Capital	1000	your debt = credit balance
Profit	400	not used in the transaction
TOTAL LIABILITIES	1500

*PROFIT AND LOSS STATEMENT*
Sales	1000	income = credit balance
Cost of Goods Sold	400	cost = debit balance
Utilities	200	cost = debit balance
Profit	400

Closing Balance 31/12/XXXX would look like:

After registration of your closing balance from the previous year, you need to run a year end closing to start with the open balance into your new year.
In the example above, you would close 2015 and start 2016 with the opening balances in your balance sheet as of 01/01/2016.

The year end closing can be run through:

Accounting - green button - Accounting Transactions - green button - Year Close Fiscal Year.

Notes:

If you create for example an inventory count sheet to generate an opening inventory, you will automatically create an opening balance in your accounting, so, please make sure you do not set up your inventory opening balance in any additional accounting transaction.

The same is valid for bank accounts, if you use the bank entry matching coming from a bank statement for example. For details about bank feeds, please see here: support article

If you create invoices and bills to generate your customer's or vendor's opening balance, you would also already have the according posting in the balance sheet and P&L.

Tip:

If you need to create an opening balance as of 01/01 and include balance sheet and P&L, it might be best to create this accounting transaction for all balances as of 12/31 and then use the year end closing to start with opening balances into the new year.

IMPORTANT NOTE:

The examples in this article are meant as general guidelines only, you should refer to a local CPA who is specialized in local and legal requirements in terms of accounting rules in your country.

Setting Your Initial Capital, Opening Balance and Closing Balance