As a new customer, you likely need to bring in your beginning balances from another system or other source to start off using SoftLedger.
New customers have a couple options to bring in beginning balances:
- You can choose a point in time (e.g. January 1st, 2021) to bring in Ledger Account balances for your chart of accounts.
- You can bring in historical transactions (usually as Journal Entries) for past accounting periods.
If possible, SoftLedger recommends Option 1, as this is the cleanest transition from a different system, and will not require the set up of previous accounting periods, posting Journal Entries, differences in foreign currency revaluation calculations, and so on. If keeping historical transaction information is a requirement, then the best choice is Option 2.
Starting at a Point in Time
Once a date is set as your start date for SoftLedger use, you can take a Trial Balance from your previous system through these steps:
- Choose the SoftLedger Start Date
- Set up your Accounting Periods to align with your fiscal year, with the first year to include your chosen SoftLedger start date.
- Export a Trial Balance from the previous system as of SoftLedger start date.
- Convert the exported Trial Balance from your previous system into the SoftLedger Journal Upload format (see breakout explanation below).
- Upload the Journal Upload into SoftLedger as a beginning balance Journal Entry or Entries.
Creating an upload from the Trial Balance
Follow the below steps to adjust your Trial Balance to bring into the Journal Upload Template to create your beginning balances:
- Before copying in the Trial Balance over to the Upload Template, remove the Retained Earnings figure to no bring this value in (this will be calculated on the upload)
- Be sure the Trial Balance Ledger Account numbers correspond to the correct Ledger Account number within the SoftLedger chart of accounts.
- Add the balances into the appropriate Debit and Credit columns within the template, along with the Ledger Account number.
- Have the Journal.Number field ascend (1,2,3, etc.) for each row in the template.
- Add in the point in time start date as the date columns in the template.
- Enter an appropriate Journal.reference such as "Beginning Balance Entry", Financial for the Journal.sourceLedger field, and the ID of the SoftLedger Location (business entity) these balances are for in the Location.id field
- Add in any other supplemental information such as Description, Notes, etc
- Once this has all been created and set, copy all rows you had created (other than the headers in row 1) and paste in the next available empty row of the template (take note of the CSV row where this pasted data begins).
- For the pasted data, transpose the debits and credits (meaning swap any value in the debit column to be in the credit column).
- Change the value in the Ledger Account field to the Ledger Account Number for the Retained Earnings Account in your chart of accounts.
- Upload the file in the Financial>Bulk Journal Import section.
If the transaction history is a requirement, you would follow a similar process to the above, with a few differences:
- Choose the SoftLedger start date going back to the beginning of historical transaction dates.
- Set up the Accounting Period(s), beginning with the fiscal year that will include the oldest historical transaction dates.
- Export all historical transactions (Journal Entries if possible) from the previous system.
- Convert the export into the SoftLedger Upload Format, excluding any year-end Retained Earnings entries.
- Upload all journal entries via the Journal Upload into SoftLedger.
- Close all historical accounting periods, in chronological order.
- Ensure the year-end Retained Earning balances match your records, as these are automatically calculated in SoftLedger based on the Income Statement activity in each accounting year.
For more information and guidance, be sure to contact your SoftLedger support team at firstname.lastname@example.org.