Set Opening Balances

Opening balances are the starting point for all your account calculations. They tell the app "this is how much money was in this account on this date," which allows the app to calculate accurate balances going forward.

Why Opening Balances Matter

Opening balances serve as an anchor point:

1. Accurate calculations - The app uses opening balance + transactions = current balance
2. Statement reconciliation - Opening balances help verify your records match bank statements
3. Historical accuracy - Even if you import old transactions, opening balance sets the baseline
4. Trust in the system - When balances match your bank, you know the system is working

When to Set Opening Balances

Set an opening balance when:

• Creating a new account - Set the current balance as the opening balance
• Importing historical transactions - Set balance from before your oldest transaction
• Reconciling with statements - Use statement closing balance as opening balance
• Starting fresh - Set today's balance as your opening balance

How to Set an Opening Balance

Step 1: Find Your Statement Balance

You need a known balance from a specific date. Best sources:

• Most recent bank statement - Use the closing balance
• Online banking - Current balance from a specific date
• Checkbook register - Last reconciled balance

Important: Note both the amount and the date of this balance.

Step 2: Navigate to Account Settings

1. Go to Accounts in main navigation
2. Click on the account you want to set opening balance for
3. Click "Edit Account" or "Account Settings"
4. Look for "Opening Balance" section

Try it now: If you have demo data, view your accounts and practice setting opening balances on the sample accounts.

Step 3: Enter Opening Balance

1. Enter the balance amount
2. Enter the date of that balance
3. Click "Save"

Step 4: Verify Calculation

After setting opening balance:

1. The app calculates: Opening Balance + All Transactions = Current Balance
2. Check your current balance in the app
3. Compare to your bank's current balance
4. If they match, you're set! If not, see troubleshooting below.

Statement-Anchored Balances

Our app uses statement-anchored balances, which means:

• Opening balance comes from a bank statement closing balance
• All transactions are imported from statements
• Current balance = Opening balance + imported transactions
• Reconciliation verifies app balance matches statement balance

This approach ensures accuracy because you're using your bank's official records as the source of truth.

Common Scenarios

Scenario 1: New Account, Starting Today

Situation: You just created the account and want to start tracking from today.

Solution:
1. Log into online banking
2. Note today's current balance
3. Set that as opening balance with today's date
4. Import transactions going forward

Scenario 2: Importing Historical Data

Situation: You want to import 3 months of past transactions.

Solution:
1. Find the balance from 3 months ago (before your oldest transaction)
2. Set that as opening balance with that date
3. Import all transactions from that date forward
4. Verify current balance matches your bank

Scenario 3: Reconciling with Statement

Situation: You have a bank statement and want to reconcile.

Solution:
1. Use the statement's closing balance as opening balance
2. Use the statement's end date as the opening balance date
3. Import transactions from that statement
4. Verify app balance matches statement closing balance

Troubleshooting Balance Discrepancies

Problem: App Balance Doesn't Match Bank Balance

Possible causes:
1. Missing transactions - Some transactions not imported
2. Duplicate transactions - Same transaction imported twice
3. Wrong opening balance - Opening balance amount or date incorrect
4. Pending transactions - Bank shows pending, app doesn't

Solution:
1. Compare transaction lists (app vs bank)
2. Check for missing or duplicate transactions
3. Verify opening balance date and amount
4. Account for pending transactions

Problem: Balance is Off by a Specific Amount

Possible causes:
1. One transaction missing - Amount equals the discrepancy
2. One transaction duplicated - Amount equals half the discrepancy
3. Opening balance wrong - Difference equals discrepancy

Solution:
1. Search transactions for the discrepancy amount
2. Check for duplicates
3. Verify opening balance

Best Practices

1. Use statement closing balances - Most reliable source
2. Set date correctly - Opening balance date must be before your oldest transaction
3. Reconcile regularly - Check balances monthly against statements
4. Document your source - Note where opening balance came from
5. Verify after import - Always check balance after importing transactions

Relationship to Transactions

The opening balance works with transactions like this:

Opening Balance (Jan 1): $1,000.00
+ Transaction (Jan 5):   -$50.00
+ Transaction (Jan 10):  +$200.00
+ Transaction (Jan 15):  -$75.00
= Current Balance:       $1,075.00

If your current balance doesn't match this calculation, there's an issue to investigate.

Key Takeaway: Opening balances anchor your account calculations. Use a statement closing balance from a known date. The app uses this + transactions to calculate current balance. When balances match your bank, you know everything is accurate.