Before we begin, a note about Getting Assistance
It is important that loading Opening Balances and setting up your Chart of Accounts is as accurate as possible as it significantly influences your reporting and SoEasy's Analytics.
The processes inside SoEasy are quite straight forward but it still requires a certain degree of accounting experience and many people ask for help.
If there is an issue with the function of the Opening Balance process, please contact support and we will resolve the problem.
If you need additional help to load you balances or set up your Chart of Accounts, we provide a fee based service where we can log on to your system with you, and load the values with you.
It is quick and affordable service that takes usually less than 30 minutes.
Please click below for more information.
How to Load your Opening Balances
At the end of your financial year, your accountant will audit your financial records and create your official End of Year reports that are used to:
- Conclude your years trading activities
- Summarise your year's trading performance
- Identify taxes/refunds due to the IRD
- Identify your Current Shareholder Account status
- Help you review your past performance with the aim of improving your next year's performance
The Accountant's process will include additions and edits to your records that will not be in the current SoEasy system. These edits are called 'Journal Entries' and 'Balance Day Adjustments'.
Trained and experienced accountants make these changes to correct figures in order to a) Maintain your records in accordance with the XRB's Accounting Standards and b) Minimise your Tax liabilities.
As a result of these adjustments, your SoEasy Opening Balances are unlikely to be correct and when you receive your End of Year Financial Reports from your accountant you should:
- Review them and discuss/agree with the content
- Load the closing balances of the Equity Report and the Balance Sheet into the Opening Balances section of SoEasy.
- Rebuild the Accrual System to reflect the changes
How to Load the Accrual Opening Balances
1: Open SoEasy and go to Cash Book > COA + Accrual Screen
2: This screen provides access to all the different functions of the SoEasy Accrual System
3: Select the 'Opening Balances' tab
4: Before you start loading your Opening Balances, check through the Equity Statement and Balance Sheet and make sure the required accounts are present inside your Chart of Accounts.
If not, select the 'Accounts' tab and add new accounts to suit.
5: Important features of Accounts:
- Account Name.
- Abbreviation. The 'A' represents the Division the account belongs to. In the case shown above, the 'A' is for the Administration Division (The default Division).
You can set up Divisions by selecting the 'Division's Tab'.
Keep the Abbreviation simple but avoid single character letters such... F, B, C....
A good standard for account abbreviations is for them to has a minimum of 3 characters. - Select the type of account. It is very important to get this setting correct. If in doubt please contact your Accountant.
- Is GST/VAT applicable to this account? Would a normal transaction loaded against this account have a component of GST as part of the value?
- Choose a 'Classification' for this account so that Reports know where to display the Account Name and values for the best result.
This classification can be changed at any time but will be limited by the selection of 'Type of Account'.
For example; if you set the Type of Account to 'Asset', you will not be able to set the Classification to 'EXPENSES-OPERATING'. You would have to set the Classification to an ASSET class. - If your Accountant has provided their Chart of Account's reference numbers to you, you can add them here. This is not important at this stage so don't spend too much time on the subject.
SoEasy comes pre-configured with 4 bank type accounts:
A-MB = Main Bank
A-SB = Second Bank
A-IB = Investment Bank
A-C = Cash on Hand - If you want to add another bank account:
i. Add the account
ii. Set it as a Type 'Asset'
iii. Classify as 'ASSETS-CURRENT'
iv. Tick the box 'Is this a bank account?'
There is additional information that could be loaded but they are unimportant for loading 'Opening Balances' and are not a subject covered here.
6. Loading the Opening Balances is best done methodically by stepping through the End of Year reports (Equity Statement & Balance Sheet) and loading the values one at a time.
It doesn't take long and ACCURACY is the key.
a) Go to the 'Open Balance' screen
b) Use the buttons on the right to filter the data showing in the panel to the left
c) Working through the reports, match the report account with one inside SoEasy
d) Click on it with your mouse
and a dialog box will appear
e) Add/edit the figure. Only one figure is shown in the dialog box as the system understands what to do with the values you enter based on what the account type is.
NOTE: If you have an account loaded but it does not show in the 'Open Balances' screen, review the account in the 'Accounts' screen and make sure it is set to either equity, asset, or liability
7. All the figures need to be added so that the 'Balance' resolves to zero ($0)
FAQ: Can I exit the screen before I have loaded all of the Opening Balances?
Answer: Yes. The system will ask if your would like to 'Leave without Posting' or 'Post'.
8. When you have loaded your Opening Balances and the Balancing total resolves to $0, you can 'Process Open Balances'.
And this completes the process until next year.
FAQ: Can I reload the Opening Balances?
Answer: Yes. At any time during the Financial Period, you can reload the Opening Balances and select 'Process Open Balances'.
Your Accrual Reporting will not be accurate until Opening Balances are LOADED and PROCESSED but it will not affect the daily performance of SoEasy.
FAQ: How can I see the Opening Balances in the Accrual?
The Opening Balances will form part of the reporting values. If you would like to see the actual entries:
1. Go to 'Show Entries'
2. Select the 'OpenBal' button.
Additional Requirements
You will also need to load in your Assets from your Asset Schedule. This is covered in another help section (available soon).
Getting Assistance
It is important that loading Opening Balances and setting up your Chart of Accounts is as accurate as possible as it significantly influences your reporting and SoEasy's Analytics.
The processes inside SoEasy are quite straight forward but it still requires a certain degree of accounting experience and many people ask for help.
If there is an issue with the function of the Opening Balance process, please contact support and we will resolve the problem.
If you need additional help to load you balances or set up your Chart of Accounts, we provide a fee based service where we can log on to your system with you, and load the values with you.
Please click below for more information.