Entering balances from a previous system

Step 5: Entering balances from a previous system


Warning! If you have never set up a new accounting system, you can invite your financial advisor, like your bookkeeper or accountant, to help you if you need it. To give them access to your account, set them up as users and send them their login information.

If you are switching over from a system you previously used to manage your business records, follow these steps to bring over balances:

  1. Choose a starting date for WorkingPoint. This will be the date that you will officially begin using WorkingPoint to manage your business records.

Your start date will determine your previous system end date. This means that as of your start date, you will no longer enter information into your previous system. Your end date is the day before your start date. For example, if you are planning to start using WorkingPoint as of January 1, 2009, your WorkingPoint start date is January 1, 2009 and your previous system end date is December 31, 2008. These are important dates when you begin to enter balances in WorkingPoint.

  1. (Optional, but recommended) Prepare your previous system for transfer by consolidating & cleaning up data, including:

  • Review/adjust your AR for truly open invoices
  • Review/adjust your AP for truly open bills
  • Perform a physical inventory to bring over actual inventory valuation
  • Reconcile your bank and credit card account(s) to clean up any old transactions
  • Run a Balance Sheet and PNL (Profit and Loss) and make sure your books are in balance
  1. Run financial reports in your previous system as of your end date.

  • Balance Sheet
  • Profit and Loss for your current fiscal year up to and including your end date
  • Bank Reconciliation detail and summary report (per account) —This report typically shows your ending balance from the last reconciliation and any new or uncleared transactions detail
  • Accounts Receivable Aging Detail report—This report shows your current receivables (what your customers owe you) including customer name, balance owed including individual invoice and credit memo information. If you do not have this report, gather all open customer invoices and credits for reentry.
  • Accounts Payable Aging Detail report—This report shows your current payables (what you owe your vendors) including vendor name, balance owed including individual bill and vendor credit information. If you do not have this report, gather all open vendor bills and credits for reentry.
  • Inventory Valuation Report —This report shows the current value of the items you keep in stock to sell and includes the item name, the average cost, the quantity available, and the total asset value.
  1. Enter your account opening balances as of your start date.

You can enter your account balances one at a time by entering an opening balance in the account details. However, for most accounts, you can use an adjusting entry to enter your account balances in bulk.

Follow the steps below, per account type, to move over your data: 

Assets, Liabilities, and Equity

Using your Balance Sheet Report: Enter all Assets & Liabilities except for A/R, A/P, bank and credit card accounts with any uncleared or new transactions, and inventory.

Create an Adjusting Entry and:

  • Assets - Enter beginning balances in Opening Balance Equity account offsetting to the individual asset accounts.

  • Liabilities - Enter beginning balances in Opening Balance Equity account offsetting to individual liability accounts.

  • Equity - Enter beginning balances in Opening Balance Equity account offsetting to individual equity accounts.

  • Note: For Retained Earnings – Create an account in the Chart of Accounts called “Prior Retained Earnings.”  Enter the beginning balance in Opening Balance Equity account offsetting to Prior Retained Earnings. In WorkingPoint, retained earnings are calculated automatically for you and will post to an internal account called Retained Earnings.

Bank and Credit Card Accounts


The next step requires data entry for the detail that makes up the bank account balance if you want to track your uncleared transactions individually in WorkingPoint.  Note: there is no way currently to reconcile your accounts in WorkingPoint so this step is completely up to you. Alternatively, you can enter a lump sum for your bank accounts.

Using your bank and credit card reconciliation report, from your individual bank and credit card accounts:

  1. Use Deposit to enter your starting balance with the total offsetting to Opening Balance Equity account. In QuickBooks, the “Cleared Balance” from the last bank reconciliation will be your starting balance.

  2. Next, enter the Uncleared Transactions and the New Transactions for checks, payments, and deposits using Deposit or Record Payment/Purchase as needed. The bookkeeping account will be Opening Balance Equity.

  3. The ending balance of the account should match the current balance or QuickBooks Ending Balance.

Accounts Payable

Using the A/P Aging report or Unpaid Bills report:

  • Enter all open bills as individual bills with the total amount of the outstanding bill assigned to the Opening Balance Equity bookkeeping account. Make sure the date, due date and bill number match the original bill.

    • Result: Your previous A/P aging report should match the account balance for A/P.

Accounts Receivable

Create a Beginning Balance item in the Items List with the revenue account set to Opening Balance Equity.

Then, using the A/R Aging report or Open Invoices report:

  • Enter all open invoices as individual invoices with the total amount of the outstanding invoice charged to Beginning Balance item. Make sure the date and invoice number match the original invoice.

    • Result: Your previous A/R aging or summary report should match the account balance for A/R.

Income Statement (aka Profit and Loss)

Using the Income Statement report, create an adjusting entry and enter balances for individual income and expense accounts and offset the total to the Opening Balance Equity account.

  • Depending on the day of the cut-over, different dating scenarios will affect the accuracy of the PNL.

    • If cut-over is 01/01/09, enter beginning balances on 12/31/08 for report ending 12/31/08. This will keep the PNL for January accurate and bring over the prior balance for previous month.

    • If the cut-over is 02/13/09, enter balances from report run from the beginning of your fiscal year to 01/31/09 and enter on 01/31/09 and then run a report for February month to 02/12/09 and enter on 02/12/09.


See Step 6: Import Items (link is below)

Opening Balance Equity

The Opening Balance Equity account balance should be zero at the end of all the adjustments. 

What is the Opening Balance Equity account?

The Opening Balance Equity account is an account set up by WorkingPoint to be used as a clearing account during your account setup. Once setup is complete, this account should have a balance of zero when viewed in the register and on your Balance Sheet report.



Your Getting Started Next Step:

Step 6: Import your Items List

(Skip this step if you prefer to create new items on the fly and you did not enter a beginning balance for inventory.)