What are Opening Balances?

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Opening Balances:

The opening balance of the current fiscal year represents the closing balance of the previous fiscal year. The opening balance includes the balance sheet accounts (permanent accounts) without the income statement accounts (temporary accounts) that are closed annually in the profit and loss account and this account appears in the balance sheet under the name of the working profit account (retained or carried over earnings).

What is the goal of the opening balances feature?

Opening balances are used to transfer account data from a previous accounting program to Qoyod, and it includes all permanent accounts such as:

Asset account:

This stands for the economic resources that the organization possesses, such as Inventory (products and costs), bank, cash, debtors (customers).

Liability Account:

Which expresses the organization’s obligations towards third parties in exchange for obtaining goods, services, or loans such as Creditors (vendors).

Equity:

Which is what owners of an organization own of funds in that organization such as Capital, retained earnings (working earnings).

How opening balances of your organization appear in Qoyod:

The opening balance appears in the accounts of the balance sheet and is recorded in the book entries.

For more information on “Opening Balances” in Qoyod, click Here.