# Opening balance equity **URL:** \ **Category:** Uncategorized\ **Created:** [October 7, 2020, 3:21pm UTC](https://forum.manager.io/t/opening-balance-equity/31005 "2020-10-07T15:21:07Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![Patty](https://avatars.discourse-cdn.com/v4/letter/p/9dc877/32.png) [@Patty](https://forum.manager.io/u/Patty)\ **Post date:** [October 7, 2020, 3:21pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/1 "2020-10-07T15:21:07Z")
Firstly, I think your program is of great value and thank you! However I entered my bank accounts and the starting balance for each as on the statement. After the 1st year end with Manager, there is an opening balance equity line. Everything seems to balance on the balance sheet (with the opening balance equity included in the calculation) however how can the opening balance go to 0 for the next year? Can I move it to retained earnings or does it belong elsewhere? Thank you for your support! ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 7, 2020, 5:07pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/2 "2020-10-07T17:07:50Z")
First, what version number are you using? Second, what are you referring to as “opening balance equity line?” There has never been anything named “opening balance equity.” Older, obsolete versions of Manager used to have an automatic account named _Starting balance equity_ that appeared when setup was improper, in order to balance the books. I suspect that is what you are referring to. Manager is a perpetual accounting system, and balance sheet account balances simply continue from year to year. They do not “go to 0 for the next year.” Even when _Starting balance equity_ was part of the program, you could not move its balance anywhere, because that balance indicated mistakes. You had to fix the mistakes. So, update your software. Then come back to the forum and explain **exactly** what you are seeing. Illustrate with screen shots. ---
**Author:** ![Patch](https://avatars.discourse-cdn.com/v4/letter/p/a183cd/32.png) [@Patch](https://forum.manager.io/u/Patch)\ **Post date:** [October 7, 2020, 9:50pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/3 "2020-10-07T21:50:34Z")
> [@Patty](#): > > Can I move it to retained earnings or does it belong elsewhere? Yes This was done by setting the correct starting balance for owners equity. The newer version calculates the starting balance of Owners equity for you instead of creating the Starting balance equity account. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 7, 2020, 11:29pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/4 "2020-10-07T23:29:49Z")
> [@Patch](#): > > The newer version calculates the starting balance of Owners equity for you instead of creating the Starting balance equity account. Actually, that is not quite right. Recent versions place any imbalance during setup into _Retained earnings_. _Owner’s equity_ is an account you would have to create on your own. Or, a sole trader/proprietor may rename _Retained earnings_ as _Owner’s equity_ according to this Guide: [https://www.manager.io/guides/6971](https://www.manager.io/guides/6971). Regardless, the imbalance is posted to the built-in account named by default as _Retained earnings_. ---
**Author:** ![Patty](https://avatars.discourse-cdn.com/v4/letter/p/9dc877/32.png) [@Patty](https://forum.manager.io/u/Patty)\ **Post date:** [October 8, 2020, 3:05pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/5 "2020-10-08T15:05:42Z")
Thank you Patch & Tut… I created in equity Money invested in business chart of account and allocated it there and the starting balance equity got removed. Afterall it was money in the checking account from the previous year. Greatly appreciated your feedback on this great software! ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 8, 2020, 3:46pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/6 "2020-10-08T15:46:24Z")
What you did was not the correct, approach, @Patty. There are several completely separate issues involved, based on what you have written: - First and foremost, you apparently did not update your software as I recommended if you are still discussing the obsolete _Starting balance equity_ account. Update first, or nothing else that is said by users trying to help will make sense. - You should **not** be setting up new Manager businesses for new accounting years. As I wrote above, Manager is a perpetual system. Read this Guide: [Close an accounting period | Manager](https://www.manager.io/guides/7470). - Starting balances are **only** entered when migrating to Manager from a prior accounting system. Read these Guides: [Enter starting balances | Manager](https://www.manager.io/guides/15718) and [Set up a bank or cash account | Manager](https://www.manager.io/guides/11367). - Moving the starting balance of your checking account to your newly created equity account did nothing to resolve your setup problems. It only hid them in different accounts. If that money was actually in your checking account when you began the business, you need to enter it according to the Guides above. Otherwise, your bank account balance will never be correct. ---
**Author:** ![Patty](https://avatars.discourse-cdn.com/v4/letter/p/9dc877/32.png) [@Patty](https://forum.manager.io/u/Patty)\ **Post date:** [October 23, 2020, 1:25am UTC](https://forum.manager.io/t/opening-balance-equity/31005/7 "2020-10-23T01:25:20Z")
Thank you for your support! ---
**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\ **Post date:** [January 18, 2023, 2:52pm UTC](https://forum.manager.io/t/opening-balance-equity/31005/8 "2023-01-18T14:52:36Z")