Opening Balance confusion.... VT | AccountingWEB

Opening Balance confusion.... VT

VT + - entering opening balances


I have just started using VT in a new job after they battled with SAGE for way too long. Its great and I love it BUT I am struggling with the opening balances process. We can't import a csv file as my predecessor has only used sage for calculating VAT and never reconciled bank account or adjusted figures to reflect the accounts at the year end etc etc.

I started using it in April to coincide with the year end - 31st March, and so far have just been inputting purchases made/paid in the new FY.

Basically all I need is to enter the opening balances of the Creditors (suppliers accounts) & Debtors (Sales) accounts and the VAT owing, as our VAT month end is April. We are partially exempt, just to make things more interesting. I know the amounts at least, which is a start!

1. What is the double entry for the creditors balance at 31st March?
2. Do I need to input every outstanding purchase invoice individually? (there are about 200...)
3. What is the double entry for the VAT liability?
4. When I've paid a supplier in the current year, who invoiced in the last year, what is the double entry for that?!

Sorry to be a bit dim.

Any guidance joyfully received.


Post the opening balance sheet

wardandco | | Permalink

I always post the opening balance sheet and then you are starting with the right figures and everything balances.  It depends on the company as to whether I post the individual invoices in sales and purchase ledger - whether they are all likely to be paid at once.  You then also have the opening bank balance to reconcile or post the statement balance and the reconciling items if there are any so that you can reconcile the bank account easily.

get an accountant

Anonymous | | Permalink

To answer point 2) no you don't need to input each individual purchase invoice ... you can just Journal the total y/e  balance for each supplier.

For the res of your points ... either take a basic bookeeping course to understand double entry bookkeeping ... or get a qualified accountant to help you with these ... because if you don't understand the principles of this .. you will not make a good bookkeeper and will head for disaster when it comes to the year end!

VT Double Entry

Carolynne | | Permalink

I agree with the last comment, regarding training and help.  I started in 2004 working for myself, and found it difficult to know how to do everything that was required, without feeling a little shaky on some things.  Sometimes, it is good if you can find a friendly accountant who would be happy to provide a little mentoring when required.  I am an AAT member in practice and those who are prepared to give up a little time, help others when we can.  Perhaps you can find someone in your own area that would be happy for you to meet at their office once a month for an hour, just to show you a few things that you don't feel confident with.  We can read all the books we like and sit all the exams, but actually doing it for a living is a lot harder, and you can feel quite isolated at times.

Can you get hold of a User Guide for VT, which would explain about opening balance entries etc?

-- C

nigelburge's picture

Agree - just post the opening balance sheet.

nigelburge | | Permalink

You will then have all the correct opening balances and they will balance!

The beauty of VT is that it is so easy for your accountant to change any mispostings, including opening balances, when you give him the file at your year end. He will certainly thank you for using VT.

As for your other queries. Just read the Help in VT: it is very good indeed.

bookeeping course

tobri | | Permalink

While a bookeeping course may be beneficial to you in the longer term it may take some time for the penny to drop as far as your immediate queries are concerned.

So here is my Quick-Start answer to the two queries "What is the double entry for...."

Think....Opening Capital brought forward.

Hope that helps.


lexysmith | | Permalink

Thanks to all. It was more of a technical query really as I do know a bit about book-keeping - more to do with the specific accounts in VT - opening balances contra etc. The help thing is good upto a point but the opening balance procedure seems entirely different to SAGE which I guess is where my confusion lay.

Anyway, have muddled through it.


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