Forum Message

Changing from manual accounts to Solar - Opening balances

I have looked hard around the help and forum, but can't quite find the answer.

I am moving from manual book-keeping and accounts to Solar Accounts.
I will go live on 1st April.
I have recorded all my invoices where the customer will deduct CIS and that CIS amount will go towards the tax bills from the 1st April onwards. I think that was the right thing to do.
I understand how to record the opening bank balance on the 1st April and how to set up the VAT payment that will be made for the previous quarter on the manual accounts.
With regards to opening balances we have another year of payments to make on vehicles, we are mid way through a Yell subscription and there will be credit card payments to make where the purchases were made before go live.
How do I know what to put as the opening balances, should I get statements from the finance company, yell etc as at the 1st April, is this how others do it.

Hope this makes sense!


Posted by Janis Harbour on Mar 19, 2011 7:23 PM GMT

Hi Janis,

For the payments due on vehiicles, you should create a new liability account called 'Vehicle Loan Liability' and set the opening balance to the amount owing as at 1st April. If you don't know the amount owing check your statement or ask your accountant.

For the Yell subscription, I assume that you are receiving advertising as you make payments. In that case there's no need to record an initial advertising liability balance.

For paying off your credit card, set the opening balance of your Mastercard and Visa as it appears on your bank statement. When you pay off your credit card record a bank transfer as described here:
http://www.solaraccounts.co.uk/help/how-to-record-a-bank-transfer.php

Again, please check the above information with your accountant as he/she may prefer a different approach.

Regards


Posted by Mark McLaren (Solar Accounts) on Mar 20, 2011 12:07 PM GMT