Enter stakeholder opening balances for your first year

When you enter conversion balances, you often need to enter a current account (or equity) opening balance. However, in future years this opening balance doesn't reconcile with the opening balance in the reports, and you will need to correctly allocate these amounts.

How it works

Xero doesn't require owner, beneficiary or partner accounts to be cleared out each period. These accounts will display cumulative amounts on the balance sheet by default. The corresponding Profit & Loss accounts will still automatically clear out each period.

Owner accounts should be grouped together, with the Opening Balance option selected.

Use this process to enter the opening balances for stakeholders (owners, beneficiaries, or partners) into Xero so they will appear as the opening balance on the financial reports.

Example

In this example, using a conversion date of 1 April 2015, the 2015 'Opening Balances' figures for the beneficiaries does not appear on the top line of the summary. Instead, the figures are summed and show as 5,000.00 for 2015 'Funds introduced'.

Image of the Beneficiary Accounts report showing the Opening Balance as blank

To fix this, you need to enter this amount into the comparative balances for the previous financial year.

  1. Go to Settings and click General Settings.

  2. Click Conversion Balances.

  3. Click Add Comparative Balances.

  4. Enter the 'opening balance' figures into the comparative balances for the previous year.

For example, here we've entered the opening balance figures of 2,500.00 for Beneficiary 1 and Beneficiary 2 for the 2013-14 financial year.

Image showing Opening Balance figures for each beneficiary for FY2013-14

Xero will sum the figures from the previous year into the 'Opening Balance' account for the conversion balance year.

In the example below you can see that 5,000.00 now appears on the top line.

Image of the Beneficiary Accounts report showing the Opening Balance as 5,000.00