I have another question. I’m currently setting up the opening balances for the previous FYE. I created an account under Liabilities - Accruals. Do I enter the total figure for Accrued expenses or do I create a journal so I can have a clearer idea of what Accruals I’m paying for?
make journal entries into various accrual accounts to guide you, that a better option.
Why not just tick the box indicating a starting balance as of the start date? When you do, more fields appear to enter the amount. You can create as many separate accrual liability accounts as necessary if you need to distinguish between them. And then you’re set up to continue the process.
Thanks! Does it means I don’t have to make any journal entries? Previously I didn’t enter any opening balances. I only make journal entry. But when I make payment, my accrual becomes negative as it did not take into account the items that was entered before the start date.
You can use either journal entries or the opening balance, but not both. If you use journal entries, you must set a start date early enough to include them. Personally, I recommend the opening balance approach.
Okay. Thanks for helping!