Starting balance — Capital Account — Edit

When you begin using Manager for your accounting, you may need to enter starting balances for your capital accounts to reflect their existing balances. This guide explains how to set up starting balances for capital accounts in Manager.

Accessing the Starting Balance Form

1. Navigate to the Capital Accounts tab in the left navigation pane.
2. Click on the capital account for which you want to set up a starting balance.
3. Click the Edit button to open the capital account's details.

Filling Out the Starting Balance Form

In the capital account's edit form, you'll find fields to set the starting balance:

Capital Account

Ensure that the Capital Account field shows the correct capital account you have selected under the Capital Accounts tab.

Starting Balance Type

In the Starting Balance section, select whether the starting balance represents a Debit or Credit amount:

• Debit: Choose this if the capital account represents an asset on your Balance Sheet.
• Credit: Choose this if the capital account represents a liability on your Balance Sheet.

Typically, you would select Debit if the business owes money to the capital account holder (the owner has withdrawn more than they've invested), and Credit if the capital account holder has invested funds into the business.

Starting Balance Amount

Enter the starting balance amount in the Starting Balance field. This amount should reflect the balance of the capital account as of your starting date in Manager.

Saving the Starting Balance

After entering the necessary information:

1. Review the details to ensure everything is correct.
2. Click the Update button to save the changes to the capital account.

Note: It's important to enter accurate starting balances to ensure your financial statements reflect the true financial position of your business from the start date.