Opening Balance Date
EXISTING BUSINESSES
If your business is already in operation for a number of financial years, then you must decide from which point you will be recording transactions within Thesaurus Accounts.
As your business is already in operation for a number of periods, then there are certain "Opening Balances" to be entered to indicate the opening financial positions of the business, e.g. opening bank balance, amounts due from customers etc.
It is advisable that the point from which you start to use Thesaurus Accounts would be the first day of the new financial year, therefore the balances from the preceding days close of business are entered as the opening balances, i.e. last day prior financial period.
The reason for this is that your accountant will prepare your accounts as at the close of business of the last financial period - therefore the accounts which he issues to you for signing and publication will have the opening financial position which you will enter as your opening balances.
Example:
Prior Financial Year End 31st December 2021
Opening Balance Date 31st December 2021
The balances as per the accounts at 31st December 2021 include all transactions up to close of business on that day (including all transactions of that day). Therefore you are entering the balances as at close of business 31st December 2021.
Entering an Opening Balance Date is optional and may be left blank if preferred or, if entered, may be changed at a later date.
NEW BUSINESSES
If you are a new business setting up and you will be implementing Thesaurus Accounts from the start then there is no opening financial position to enter and therefore no opening balances.
The opening balance date entered will be the commencement date of business.
