Ledger Setup
Part of Chart of accounts and accounting setup
Reviewing opening balances with an accountant
Prepare a dated opening balance pack and reconcile bank, debtor, creditor and stock figures before approval.
Agree on a changeover date, compare the new opening ledger with the old closing records, and explain the amounts still owed or uncleared. Ask the accountant to resolve differences before approving the starting figures. A trial balance can add up while its bank, customer or supplier detail is still wrong.
Prepare a dated review pack
Provide the old closing trial balance and balance sheet, the proposed new opening trial balance, bank statements around the changeover, aged receivables and payables, and relevant loan and stock schedules. Identify the business entity and report dates.
State whether the new system contains earlier transactions or starts with balances and unpaid items.
List adjustments already made and questions still open. Do not use an unexplained balancing figure to hide a difference.
Tie each balance to its detail
| Balance | Evidence to compare | Review question |
|---|---|---|
| Bank | Ledger, statement and uncleared items | Are timing differences identified and recorded only once? |
| Trade debtors | Control balance and unpaid customer items | Do invoices and credits explain what customers owe? |
| Trade creditors | Control balance and unpaid supplier items | Do bills and credits explain what the business owes? |
| Stock, if tracked | Ledger value and item quantity and value schedule | Do item records support the total? |
| Loans and other liabilities | Ledger and lender or other supporting schedule | Is the amount and account type supported? |
MYOB's migration guidance calls for a trial balance, unpaid customer and supplier lists, and an opening bank check. Its opening-balance guidance says unpaid historical sales and purchases should agree with the corresponding debtor and creditor opening balances. The entry steps differ between MYOB Business and AccountRight, so follow the instructions for the product in use.
MYOB migration guidance: key documents and checks
- Required documents for migration
- Trial balance, unpaid debtor & creditor lists, opening bank check
- Unpaid historical sales must match debtor balances
- Yes – required by MYOB guidance
- Unpaid historical purchases must match creditor balances
- Yes – required by MYOB guidance
- System-specific entry steps
- Follow instructions for MYOB Business or AccountRight
Resolve differences with the accountant
For each difference, record the old amount, new amount, cause, proposed correction and final decision. Ask the accountant to review account types, opening equity, GST-related balances and any uncertain item.
If unpaid pre-changeover invoices or bills may affect GST reporting, include that question in the review. Bring in the person responsible for stock or payroll records when those balances are involved.
An uncleared cheque or deposit can explain why a bank statement and book balance differ at changeover. MYOB's AccountRight first-reconciliation guidance treats uncleared items separately from the opening bank amount. Identify the items and agree on the entry method for the chosen system before posting a correction.
Save the approved starting point
After corrections, rerun the opening trial balance and supporting reports. Check that debits and credits agree and that control balances tie to their schedules. Save the dated report set with adjustment references and the accountant's decisions. If a balance changes later, retain the earlier approved copy and document the revision.
