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Opening Balances

Opening Balances are the account balances you enter when you first start using MyBooks — or when you switch from another accounting system. They represent the financial position of your business on the day you begin tracking in MyBooks.

Why Opening Balances Matter​

If you skip opening balances, your financial reports (Balance Sheet, Trial Balance, etc.) won't reflect your true financial position. For example:

  • Existing bank account balances won't be captured.
  • Outstanding receivables and payables won't appear.
  • Inventory values will be zero until transactions are entered.

Before You Begin​

  1. Choose a Cutoff Date — this is the date as of which you are entering balances (e.g., the beginning of the financial year, or the date you subscribed to MyBooks).
  2. Collect your latest Balance Sheet from your previous system or accountant. This shows the values for all accounts as of that date.

Entering Opening Balances​

  1. Go to Settings > Opening Balance.
  2. Set the As Of Date (your cutoff date).
  3. For each account, enter the opening balance:
    • Bank Accounts: Enter the closing balance as of the cutoff date.
    • Accounts Receivable: Enter the total receivable from each customer. Outstanding individual invoices should be entered as Opening Receivables.
    • Accounts Payable: Enter the total payable to each vendor. Outstanding individual bills should be entered as Opening Payables.
    • Fixed Assets, Loans, Equity: Enter values from your balance sheet.
  4. Click Save.

The system ensures that Total Debits = Total Credits across all opening balance entries (double-entry principle). If an imbalance exists, MyBooks posts the difference to the Opening Balance Equity account.

Opening Stock (Inventory)​

For items with inventory tracking, opening stock is entered on the Item form itself:

  1. Go to Master Data > Items and edit each item.
  2. Under the Inventory section, enter:
    • Opening Stock: Quantity on hand as of the cutoff date.
    • Opening Stock Rate: Cost per unit.
  3. Save the item.

Alternatively, you can use a Stock Adjustment with the reason "Opening Stock" for items you forgot to set up.

Opening Receivables and Payables​

To set up outstanding invoices from before your start date:

  • Use the Opening Balance form to enter lump-sum values per contact, or
  • Create individual transactions as Opening Receivable (for customers) and Opening Payable (for vendors) — this gives you a detailed record and lets you apply payments to specific invoices.

Verifying Your Opening Balances​

After entering opening balances:

  1. Go to Reports > Balance Sheet and set the date to your cutoff date.
  2. Verify that the values match your source balance sheet.
  3. Go to Reports > Trial Balance to confirm the accounts are balanced.