Opening Day Balance Sheet is different from projected and current year balance sheet statement. Values in this statement are based on final day of your previous balance sheet statement. This template is a one page template where you can fill them with reference to previous balance sheet statement.
What about if you don’t have a previous balance sheet? Or, what about if your business is already running and you are about to start writing your financial statement?
Then, you need to gather all your previous financial data and summarize them.
What kind of financial data? All data that you can gather. Just as much as you can collect. It doesn’t have to be all data since you might spend most of your time finding them and forget about your focus to tidy up your current financial report. You may need to make assumptions. They are only affecting your final opening day equity. You can revise them later.
Could you make list of data that I should collect?
Before giving you list of data, you need to understand balance sheet format first.
Balance Sheet Format
Balance sheet consists of two balance parts, assets part and liabilities + owner’s equity part. The total values of these two parts must similar. That’s why it is called balance sheet.
Item that should be written in assets part are :
Cash amount in your bank statement
- Prepaid expenses
- Accounts receivable
- Electronic Equipment or machinery
- All of your business assets
Liabilities and Owner’s Equity
Item that should be written in liabilities and owner’s equity part are :
- Bank loans
- Accounts payable
- Prepaid income
- All of your liabilities
- Owner’s capital
- Retained earning
- Current earning
Item above are item that you usually see in balance sheet statement. For opening day balance sheet, you need to put values for those item, but if you just start to tidy up your financial transaction, you need to do some adjustment to make them balance.
We will show you how to fill them.
Where and How to Start Filling Opening Day Balance Sheet?
Here is how.
Part 1 : Assets
First, you need to gather all available financial information. Make assumption if you don’t have receipts or proof that you do the transaction.
Start from typing your bank account balance at the end of previous fiscal period. It is the easiest part. Just open your bank account then you can see your balance.
Then, put inventory values. Make assumption for its total values if you don’t know the actual value. You can adjust it later.
After that, you can value your fixed assets. It is similar with inventory. Make assumption of their remaining values. For example, you bought a car two years ago, then appraise that car value by yourself at the beginning of fiscal period.
You have bank account, inventory and fixed assets values. If you don’t have inventory or fixed asset, you don’t have to fill that. It is not mandatory. Bank account is enough. Do you have account receivable that you think you still can collect them? If the answer is yes, you can put its receivable value. If the answer is no, then leave it empty.
Your asset part is completed.
Remember, you can still can adjust all asset values while recording your current fiscal period.
Part 2 : Liabilities
Now, you can fill the liabilities and owner’s equity part. Start by typing your debts, if you have debts. Like bank debts. Fill the principal amount only. You can use loan calculator if you don’t know the remaining balance of your debts. Fill account payable, if you have any.
You have completed the liabilities part.
Part 3 : Owner’s Capital
This part is the one that usually confuse a lot of people. They tend to fill it with initial shares or initial investment. If your business is already running more than one year, this is the part where the value will be dynamic. It won’t be the same with owner’s initial investment. Owner’s capital value will increase if your business books profit. And, it will decrease if your company loss.
Fill this owner’s capital part correctly by subtracting assets value with liabilities value.
Assets = Liabilities + Owner’s Capital
Above equation should clear you on how to calculate owner’s capital if your business is already running. You can adjust asset and liabilities value later on and owner’s capital will follow accordingly.
Hope the explanation above is clear enough. Your opening day balance sheet statement is balance now. Now, you can start recording current fiscal year transaction to fill balance sheet for current year.
You can download and try it using the template below.
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