Opening Balance

What is opening balance?

An Opening Balance is the amount of money or funds present in a company account at the beginning during initial setup or at the start of the Financial period. In accounting, the opening balances has to be brought forward to start the accounting process in any system.


What is the opening balance that needs to be entered in TheBankNXT?

The accounting balances which are present at the closure in your previous accounting software acts as the Opening Balance in TheBankNXT.


How to add an opening balance in TheBankNXT?

The opening balance in TheBankNXT can be added by following the below mentioned step:

  • Go to Accounting —> Opening Balance
  • Select the Date of the opening balance
  • You can find the default Accounting Heads in accountable under which the one can find a set of Ledgers and Sub-Ledgers under respective accounting heads where the amounts can be added as debit and credit entries
  • Ledgers and Sub-Ledgers can also be added manually under the respective accounting heads and input the amount as debit and credit entries
  • The total amount will be reflected. An Opening Balance Adjustment will be made in-order to match the differences between the credits and debits
  • The total balance amount which includes the opening balance adjustment will be reflected
  • Click Save and the opening balance will be saved
  • The Opening Balance Summary I.e. Trial Balance of the opening balance will be listed.


What is opening balance adjustment?

In TheBankNXT double entry accounting system is followed whenever a credit / debit entry is made, a correspondent equal debit / credit entry has to made in-order to balance the revenues and expenses. The opening balance adjustments are to be done to match the revenues and expenses in the opening balance.


How to edit the opening balance?

The opening balance directly can be edited from the Opening Balance Tab in the accounting module by following the below mentioned steps:

  • Go to Accounting —> Opening Balance
  • Click Edit on the Opening Balance
  • Add amount or make respective changes in amount in the corresponding ledger and sub ledger
  • If opening balance exists, the automatic adjustment of opening balance will be done
  • Click Save to save the Opening Balance.


How to add a ledger and sub-ledger in an opening balance?

A Ledger or a Sub-ledger can be added directly while adding an opening balance.

Under the different accounting heads, there will be a button ‘Add Ledger’ and under the ledger there will be a button ‘Add Sub-ledger’, you can click on the button and enter the respective ledger and sub-ledger name. After entering the name click ‘Add’ button and it will be added successfully.  Now enter the amount to the respective added ledger and sub-ledger.

The added ledger and sub-ledger will be listed in the chart of accounts and respective accounting entries.