Entering transactions in historical mode

Hi,

I just started bookkeeping for a new customer.  Up until now, I had only bookkept my own business so I never had to worry about entering opening balances in historical mode. This new company was existing already.  I am bookkeeping for his 2016 year and I didn't have his opening balances right away so while I waited to get his trial balance from him, I started entering his payments/deposits etc from his bank statements in historical mode thinking that I could just enter his opening balances whenever I got them from him.  I now have what I need and have figured out how to post the opening balances, but my question is, is it wrong that I had already started entering transactions before I had the opening balances? (His bank accounts show a negative balance right now as I still haven't entered the opening balances) and once I have entered his opening balances, can I exit history mode?  Or is it ok to continue to enter the whole year in historical mode? Am I going to be able to reconcile the bank accounts in historical mode?  I have almost 10 years of experience with Sage but I have zero experience with working in historical mode!  Any suggestions/advice would be greatly appreciated!

  • Razer Electric said:
    ...but my question is, is it wrong that I had already started entering transactions before I had the opening balances?

    No, the program is designed for this.

    Razer Electric said:
    (His bank accounts show a negative balance right now as I still haven't entered the opening balances) and once I have entered his opening balances, can I exit history mode?

    First you have to enter the opening balances and make sure you are balanced, then yes you can exit history mode.  You must complete opening balances before you move to the next fiscal year.  Make sure you have recorded the previous customer and vendor invoices owing under those customer and vendor ledgers as opening balances as well or they will not balance with the Accounts Receivable and Accounts Payable G/L accounts if applicable.  Use the Data Integrity Check on the Maintenance menu to validate balancing as well as the individual reporting.

    Razer Electric said:
    Or is it ok to continue to enter the whole year in historical mode?

    Yes but you can't help your client run the business when no one knows the status of the company's account balances throughout the year.

    Razer Electric said:
    Am I going to be able to reconcile the bank accounts in historical mode?

    I don't know that I have ever tried it.  Logically, if you don't have an opening balance for the bank account, then you can't reconcile it.  Extending that logic, if you have the opening balance of the bank account and enter it, why wouldn't you enter the opening balance for all the accounts that you have?

    My process is to get the opening balances into the company file as soon as possible, then I can do anything I need.  There are many ways to set up a file so I almost always use a method that allows me to post any entries as journal entries that might have been missed during the opening balance stage.  That way I can still validate the opening balances are always matching the old system without doing any math.  I just run a trial balance, A/R and A/P etc. as of that date.  Then I get out of history mode.  This means all the customer and vendor outstanding invoices are entered, any payroll opening balances are entered per employee, etc.

    Hope this helps

  • Thanks so much for your answer! I do have another question I'm hoping you can answer with regards to entering opening balances. This particular business that I am bookkeeping for is operating as a sole proprietorship. I was previously told that the information that I needed (for opening balances) was available on his personal tax forms that he would have received from the accountant that did his year end. I have the forms but I'm not sure what balances need to be entered. Obviously the bank accounts, visa statements etc but what other balances need to be entered? He owns a strip mall so there are some expenses on form T776 (statement of real estate rentals). Do I need to enter those? What about motor vehicle expenses for the business? Which balances from the T2125?? And the auto and equipment assets? Ugh I just don't know where to start! Haha! Sorry this is really frustrating for me. I know once I get those opening balances entered, the rest will be easy peasy. I'm on a bit of a time limit with this guy as well. Any advice would be appreciated. If we can't figure this out, I may have to contact an accountant and I'd like to avoid that because they charge an arm and a leg where I live lol!