Opening balances
Set the starting point for each account as of the day before the company begins in LedgerHQ.
Set the starting point for each account as of the day before the company begins in LedgerHQ.
What They Do
Opening balances answer one question: what did this company own and owe the day before LedgerHQ started?
Each balance becomes a journal line. The account is debited or credited, and the other side usually lands in Opening Balance Equity.
When You Need Them
- You are starting mid-year and the Balance Sheet must show existing cash, loans, and equity.
- You are moving from QuickBooks or another system and keeping the old detail there.
- The Balance Sheet or Trial Balance does not match the prior books.
P&L works first
The Profit & Loss is usable as soon as income and expense start posting. The Balance Sheet and Trial Balance stay incomplete until opening balances are posted.
The Date
Always use the day before the bookkeeping start date. If books begin January 1, 2026, opening balances are dated December 31, 2025.
How To Enter Them
- Agree the company start date.
- List what the company owned and owed on the day before that date.
- Create one balanced journal entry dated that day. Ask Tally, or use Journal Entries.
- Debit assets, credit liabilities, and put the remainder in Opening Balance Equity.
- Check the Balance Sheet against the prior books, then start live bank feeds after the cutoff.
A brand-new company may only need the starting bank balance. An existing company needs the Balance Sheet as of the day before start. See Choose how to start or move a company when the path is still open.
This Is Not A Bank Rec
A statement opening balance on Bank Recs is the bank's starting figure for that period. It does not replace company opening balances. See Start a bank reconciliation.
Checklist
- Start date is agreed
- Balances are as of the day before
- The entry balances
- Balance Sheet matches the prior books
- Live bank feeds start after the cutoff