DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Cash and Bank accounts maintained on general Ledger


#1

I have maintained Cash and Bank accounts in general ledgers up to 31/12/2015. Is it possible to create the bank and cash TAB accounts 01/01/2016 onwards.


#2

Yes.

You should not enter an opening balance for the bank and cash accounts when you create them, because Manager only lets you do that as of the start date for using the program. You will have to use a Receive Money transaction to set the bank and cash account balances. Not knowing how your company is organized or how you have your chart of accounts set up, I can only tell you that the sudden appearance of money in your records should be allocated as some form of equity or capital contribution.

But how were you doing your accounting if your bank and cash accounts were not part of your accounting records? No matter what you were doing before, you will not be able to compare future results to past results. Those past results did not show a true representation of your financial position.


#3

My bank and cash accounts were in General ledgers form. So i can start using the bank and cash TAB from 01/01/2016 onwards without the opening balances. But there is a closing balances on 31/12/2015. Then how the balances will link to my bank and cash TAB.


#4

On 01/01/2016 you can record “receive money” transaction to establish balance of bank account and clear the balance of general ledger account.


#5

Perhaps I misunderstood, @ruski. Are you saying you were recording bank and cash transactions within Manager, but not within Bank Accounts and Cash Accounts tabs? Just as ordinary asset accounts?

If so, @lubos’s instructions are correct and my concerns are not applicable. Sorry if I confused you.


#6

Excellent