Suppose you are operating your business and you have picked the WP ERP Accounting Software for the first time. The first thing that you have to do is to enter the opening balance.
To do so, navigate to the WP Admin Dashboard > WP ERP > Accounting > New Transactions > Opening Balance.
After that, you will get all the options to enter the opening balance for all of your accounts.
1.Enter Accounts Receivable and Accounts Payable
In the above, screenshot, we have entered the opening balance for account receivable (the amount you will receive from your debtors) and account payables.
Accounts receivables are usually debited and account payables are usually credited in accounting.
2. Enter Any Tax Payable
If you have any tax amount that you have to pay to the Govt. then you will have to insert the amount here. You can use the “Add People” button to enter multiple tax payable amount.
Tax payable is usually credited.
3. Enter Opening Assets
Next up, you need to enter the opening asset for your business.
When you are entering opening balances for assets, you should debit them.
4. Enter Opening Liabilities
Liabilities include accounts like accruals, wages payable, payable sales tax and many more.
Next up, you need to enter the liabilities for your business. Liabilities are usually credited if they are increased.
If liability is decreased, then it is debited.
5. Enter Equities
Equities include owner’s contribution, owner’s draw, retained earnings, common stock etc.
However, a sole proprietorship business owner only needs to insert owner’s contribution, owner’s draw, Owner’s equity. If you own a public limited company then you will need to insert the other items like Retained earnings, Common stock, Preferred stock, Treasure stock, Dividends, Income Summary etc.
These account items are generally credited if they are increased.
6. Bank Opening Balance
In order to insert opening balance for banks, you need to create banks from all along. You must enter
The bank balance is usually debited if it is increased. You can credit a bank account only when you are borrowing money from your bank.