Manage Opening Balances (Conversions)
If you are currently using an accounting system such as Xero or QuickBooks Online which you will be integrating with DEAR, then you will need to enter balances from your existing accounting system. This is what we call conversion balances or opening balances.
To transfer over balances from a previous accounting system:
- Navigate to Settings > Reference Books> Financials click Opening Balances.
- First, choose your Conversion date, this is the date you are going to stop using your previous system and start using DEAR. For example if we select May 2016 as the starting date, for this date we will need to enter opening balances into DEAR as of 30th of April 2016.
- Get the trial balance from othe previous system as of 30th of April 2016 and enter the balances against all the accounts in the chart of accounts.
- First, identify which accounts are your Inventory accounts and Fixed Asset accounts by checking of these tick boxes next to your asset accounts.
- Start entering all balances from your trial balance against the same accounts in DEAR. Some accounts have special features to keep in mind:
- Enter bank statement value ($1000) against the bank account in DEAR
- Enter outstanding transaction value ($100) into an Unrepresented Funds account. If you do not have a Unpresented Funds account just simply create one in the chart of accounts. So when the $100 hits the bank account it can be coded against the unpresented funds account to cancel it out.
Accounts receivable and Accounts Payable
Accounts receivable as at the 30th of April 2016 are all the sale invoices that are still outstanding on that date. Accounts payable are all the purchase invoices still outstanding on that date.
To enter Accounts receivable and Accounts payable:
- Enter balances against the accounts in the Opening Balances tab
- For Accounts Payable, go to the Outstanding Purchases tab to enter invoices.
- For Accounts Receivable, go to the Outstanding Sales tab to enter invoices.
The total amount the balance is out by is displayed at the bottom of the screen.
Stock On Hand
To enter stock on hand:
- Navigate to Settings > Reference Books > Opening Balances and select Stock on hand tab, this is where we can enter all our quantities on hand as at 30th of April 2016.
- The stock amounts must be imported into DEAR in a spreadsheet. Click Import stock on hand from CSV and download the template. Click on the + sign to see all required and optional fields. Once you have completed building your spreadsheet simply Upload it back into DEAR.
If there is an amount in the opening balances for fixed assets (e.g. Office Equipment for $1000), a fixed asset or a list of fixed assets adding up to this value must be added to this tab.
To add fixed assets to the opening balance:
- In Settings -> Reference Books -> Financials, go to the Fixed Assets tab
- Click + Fixed Asset
- Click + Fixed Asset
- Proceed to fill in all the details marked with a red asterisk then click Ok and proceed to save. This item is now automatically registered in your fixed asset register and you can start posting depreciation.