Starting Balances Explained
Starting Balances > Starting Balances Explained
Starting Balances Explained
Starting balances are used only when migrating (transferring) accounting for an entity to Manager from a prior accounting system. They can be set only for balance sheet accounts or, when appropriate, for their subsidiary ledgers. They are not used for new businesses just beginning operation. Starting balances on the date you begin using Manager should equal ending balances for equivalent accounts in the old accounting system.
You have two options for entering starting balances:
- Enter the starting balances when you enable Manager's Tabs and Settings
- Enter starting balances for all accounts all at one time later - I prefer this option
The Tabs and Settings have been enabled, the chart of accounts, customers, suppliers, and inventory have been setup; but, the beginning balances have not been entered.
In the sections that follow, we discuss Manager's instructions on how to enter starting balances as well as my own instructions to help get you started faster. Due to the fact that those using the cash basis of accounting have to adhere to more stringent setup instructions, I've provided my own simplified setup instructions for those using the accrual basis.