If you are migrating from other accounting systems, you will likely want to record existing account balances as opening balances in Flare before you begin using Flare daily. Doing so will give you more accurate account balances and reports. You can use Flare without entering opening balances (they can be entered at any time) so if you prefer you may invite your accountant or bookkeeper to enter opening balances, or you come back later and complete it.
Before entering opening balances
If you are migrating to Flare from another accounting system, there are some things you'll need to do before entering opening balances in Flare.
- Decide on a conversion date – the date you'll begin using Flare.
- Choose a chart of accounts.
- Print or run a trial balance in your previous accounting system. The trial balance should cover the period from the beginning of your fiscal year to the day before your conversion date in Flare (the day you will begin using Flare).
If your fiscal year is from January 1 – December 31st and you will begin using Flare on June 1, you'd run a trial balance from January 1 – May 31st (inclusively). Make sure that your trial balance is balanced (debits equal credits) before entering those account balances in Flare's opening balance form.
- Get a list of unpaid invoices and bills (including customer information) from your previous accounting system.
Enter receivable and payable balances in Flare using one of the following methods:
Method 1) create invoices and bills for each that has a balance due. The amount recorded must be the balance due and not the original invoice or bill amount.
Method 2) enter the total balances for payables and receivables in the opening balance form.
We recommend option 1 because you'll then have complete reports, aging receivables/payables records by customer/vendor, and will be able to apply payments to individual receivables and payables.
- Enter opening balances from your trial balance.
If you created invoices and bills to capture receivables and payables with balances due (Method 1 in step 4 above) do not enter payables or receivables balances from your trial balance.
- Ensure the opening balance total debits equal total credits.
For more information, see Migrating to Flare from other accounting systems.
Enter opening balances
To enter opening balances in Flare, do the following:
- Click the
- In the Opening Balance Adjustment form, enter the balances (3 below) from the trial balance you ran in your previous accounting system. See Before you enter opening balances.
Drag (A above) to re-order accounts.
- Make sure that total debits equals total credits (4 above).
- Click (5 above).
If you've made a mistake or need to update the opening balance, you can edit it at any time.