Starting balance for bank account

8

We now have a new source of help using Manager Accounting: AI (the artificial intelligence craze sweeping the world). I find no single AI always provides the best answer. And the answer on one day can be different from the next day. As of 7:16 AM, July 16, 2024, here are the answers (in order from worst answer to best answer, in my opinion) to the question “Manager Accounting: How do you enter starting balances in cash accounts?”

Google’s Gemini (https://gemini.google.com/)

Entering starting balances in cash accounts depends on the specific accounting software you’re using. Here’s a general guideline and some resources for popular options:

General Steps:

  1. Gather Information: You’ll need your current cash account balance (checking, savings, etc.) as of a specific date. This date will be your starting point for tracking finances in the software.
  2. Locate Chart of Accounts: Find the section in your software for managing accounts. It’s often called the “Chart of Accounts.”
  3. Identify Cash Account: Locate the specific account for your cash (e.g., Checking, Savings).
  4. Enter Opening Balance: There might be a dedicated field for “Opening Balance” or “Starting Balance.” Enter the amount you gathered in step 1.
  5. Set Date: Select the date the balance reflects (usually the day before you start using the software).

Software-Specific Resources:

  • QuickBooks Online: [QuickBooks enter opening balance ON intuit.com]
    • QuickBooks offers automatic download of historical transactions from connected accounts, which can set the opening balance for you.
    • You can also manually enter the balance in the Chart of Accounts.
  • QuickBooks Desktop: [QuickBooks desktop opening balances ON intuit.com]
    • Provides options for entering opening balances through the Chart of Accounts or using general journal entries.

Additional Tips:

  • If unsure about any step, consult your software’s documentation or customer support.
  • Consider consulting an accountant, especially for complex situations.

By following these steps and using the provided resources, you should be able to enter starting balances in your cash accounts effectively.

Microsoft’s Copilot (https://www.bing.com/chat)

To enter starting balances in cash accounts using Manager Accounting, follow these steps:

  1. Go to Settings: Click on the “Settings” tab in the main menu.
  2. Select Starting Balances: Find and click on the “Starting Balances” option.
  3. Choose the Cash Account: Click the blue hyperlink next to your cash at bank account.
  4. Edit the Account: Click “Edit” next to the account you wish to add the starting balance for.
  5. Enter the Balance: In the “Statement Balance” field, enter the starting balance amount

This process ensures that your cash accounts reflect the correct starting balances when transitioning from a previous accounting system.

If you have any other questions or need further assistance, feel free to ask!

Perplexity AI (https://www.perplexity.ai/)

To enter starting balances for cash accounts in Manager Accounting, follow these steps:

  1. Create the bank or cash account if you haven’t already done so.
  2. Once the account is created, its initial balance will be zero.
  3. To set the starting balance, you need to enter either a New Payment or New Receipt transaction, depending on whether the starting balance is positive or negative.
  4. For a positive starting balance:
  • Go to the Cash Accounts tab
  • Click “New Receipt”
  • Select the appropriate cash account
  • Choose a date that corresponds to your start date in Manager
  • Enter the starting balance amount
  • Select an appropriate account (like “Owner’s contribution” or “Retained earnings”) for the contra entry
  • Add a description (e.g., “Starting balance as of [date]”)
  • Click “Create” to save the transaction
  1. For a negative starting balance, follow the same process but use “New Payment” instead of “New Receipt”.
  2. Verify the balance is correct by checking the cash account’s balance sheet or account history.

It’s important to note that starting balances should only be entered when transferring an existing business to Manager from another accounting system. The date you choose for these transactions should correspond to the day you begin using Manager, often referred to as the start date. Remember to set your start date in Manager before entering starting balances, as this affects how the software handles these initial transactions. By following these steps, you’ll accurately reflect your cash account balances in Manager as of your start date, ensuring your financial reports are correct from the beginning of your use of the software.