Early versions of Manager did not properly account for starting balances in all cases under cash-basis accounting. This shortcoming was fixed in August 2021, requiring all starting balances to be entered on a cash basis, regardless of the type of accounting used. Later versions of the program include the ability to automatically detect such cases and fix starting balances. However, to prevent unexpected modification of financial statements, the process requires direct involvement of the user. This must only be done once.
To check whether corrections are required for your business, drill down from the Summary page on the Retained earnings account balance:
At the bottom of the page, click the Fix Starting Balances button:
If Manager has detected potential problems, you will see a list of proposed updates looking something like this:
If no problems are detected, you will see a different message:
The process is not foolproof. Carefully check your balance sheet afterwards to ensure the changes were correct. If not, make manual edits.