About historical balancing amounts A frequently-used financial report is the Balance Sheet. It lists everything your business owes and owns, and the net amount equals your real share of the business (equity). This is commonly expressed as: Assets less Liabilities = Owner's Equity. If when entering your opening balances, you don't enter all the figures, or there's an error in one of the balances, then the Balance Sheet won't balance. To overcome this temporary issue, AccountRight enters the balancing amount in the Historical Balancing account. When you eventually enter all the asset, liability and equity amounts (or find the incorrect values), the Historical Balancing account's balance will return to zero. So if you're seeing an amount in the Historical Balancing account, don't panic. Just check that you've entered all the assets, liability and equity balances correctly as at your conversion date. You might find it helpful to compare the balances you've entered with a balance sheet provided by your accountant, dated as at your conversion date. |