Opening Balances and Reconciliation
Opening balances carry the financial position into the new system at a defined cutoff.
A worked record to reuse
Example reconciliation in illustrative currency units. The target omits a 100-unit open invoice INV-DEMO-024. Finance owns the correction and retests on 3 October 2026; approval remains pending until the invoice list and ledger agree. Do not insert a balancing entry to hide the difference.
| Balance | Source | Target | Target − source |
|---|---|---|---|
| Cash | 5,000 | 5,000 | 0 |
| Receivables | 2,000 | 1,900 | −100 |
| Payables | 1,500 | 1,500 | 0 |
| Equity | 5,500 | 5,500 | 0 |
Use your own records to work through the example and identify the next action.
Put it into practice
Agree the cutoff date and source trial balance. Reconcile receivables, payables, bank, inventory and work in progress to their supporting lists. Keep each adjustment and its approver visible. Test a later payment against an imported open invoice.
Put the right controls in place
Do not create a balancing entry simply to hide a mismatch. Agree the required applications, permissions and service responsibilities in your proposal, then review the process with the people who will use it.
Use this guide with the people who own the process. Agree responsibilities, prepare the necessary records and turn the next steps into a working plan. Get help with your implementation.