Steps to Enter Opening Balance in Zoho Books

Setting up your opening balance in Zoho Books is a crucial first step when migrating from another
accounting system. It ensures that all your prior financial data is correctly reflected, which is vital
for accurate reporting and reconciliation.

Before You Start

Before entering balances, make sure you have the following:

 A Trial Balance Report from your previous accounting software. This report should be
generated on the date you're switching to Zoho Books.
 All your bank accounts and credit cards added to Zoho Books.
 All your items entered, including their opening stock details if you're tracking inventory.

Steps to Enter Opening Balances

1. Navigate to the Opening Balances Section:
o Click on the Settings ⚙️ icon in the top right corner.
o In the "Organization" column, select Opening Balances.
2. Set the Opening Balance Date:
o Enter the date from which you want to start recording transactions in Zoho
Books. This is typically the day after your last transaction in your old accounting
system.
3. Enter Account Balances:
o The page will display various account types, including Accounts Receivable,
Accounts Payable, Assets, Liabilities, and Equity.
o Go through each section and enter the corresponding debit or credit balances
from your trial balance report.
o To add a new account that isn't on the list, you can do so from the "Chart of
Accounts" section under the "Accountant" tab.
4. Enter Customer and Vendor Balances:
o For Accounts Receivable, you can either enter a lump-sum amount or click the
Import button to upload a file with individual outstanding customer balances.
o For Accounts Payable, you can also enter a total amount or import a file with the
balances you owe to individual vendors.
5. Review and Confirm:
o After entering all the balances, click Continue.
o Zoho Books will show a preview screen where you can verify all the amounts.
 o Any difference between total debits and credits will automatically be posted to
the "Opening Balance Adjustments" account to ensure your books remain
balanced. You'll need to review your data to correct this discrepancy later.
o Once you're confident the balances are correct, click Confirm.

How to Edit an Opening Balance

If you need to change a balance after it's been entered:

 Go back to Settings ⚙️ > Opening Balances.

 Click the Edit button.
 Modify the debit or credit values for the specific account.
 Click Continue and then Confirm to save the changes.

Account Type Examples

Accounts Payable Creditors, Suppliers (amounts you owe)
Accounts Receivable Debtors, Customers (amounts customers owe you)
Bank ICICI Bank, Federal Bank, HDFC Bank etc.
Cash Cash on Hand, Petty Cash
Cost of Goods Sold
Purchases, Purchase Returns, Freight Inwards
(COGS)
Equity Owner’s Capital, Partner’s Capital, Retained Earnings
Expense Direct Expenses, Salaries, Rent, Utilities
Fixed Asset Furniture, Land, Building, Computers
Income Sales, Service Income, Interest Received, Rent Received
Long Term Liability Long-term Loans, Debentures, Bonds
Other Current Asset Prepaid Expenses, Bills Receivable, Advance to Suppliers
Bills Payable, Short-term Loans, GST Payable, TDS
Other Current Liability
Payable
Other Expense Indirect Expenses, Bank Charges, Penalties, Forex Loss
Other Liability Any other liability not classified (like Contingent
Liabilities)
Stock / Inventory Inventory of Goods, Raw Material, Finished Goods
Example for Ledger Accounts in Zoho Books
Unearned Revenue- Other Current Liability
Ledger Name Account Type
Advance
Cash on Hand Cash Accrued Expenses Other Current Liability
Petty Cash Cash Equity Equity
ICICI Bank A/c Bank Owner’s Capital Equity
HDFC Bank A/c Bank Partner’s Capital Equity
Federal Bank A/c Bank Drawings Equity
State Bank of India A/c Bank Reserves & Surplus Equity
Canara Bank A/c Bank Retained Earnings Equity
Kotak Mahindra Bank A/c Bank Share Capital Equity
Axis Bank A/c Bank Securities Premium Equity
Punjab National Bank A/c Bank General Reserve Equity
Accounts Receivable Accounts Receivable Long Term Liability Long Term Liability
Sundry Debtors Accounts Receivable Term Loan from Bank Long Term Liability
Trade Receivables Accounts Receivable Debentures Long Term Liability
Customer Advances Other Current Mortgage Loan Long Term Liability
Liability
Bonds Payable Long Term Liability
Bills Receivable Other Current Asset
Lease Obligations Long Term Liability
Dishonored Bills Other Current Asset
Pension Liability Long Term Liability
Advance to Supplier Other Current Asset
Gratuity Liability Long Term Liability
Employee Advances Other Current Asset
Fixed Assets Fixed Asset
Prepaid Insurance Other Current Asset
Land Fixed Asset
Prepaid Rent Other Current Asset
Building Fixed Asset
Prepaid Taxes Other Current Asset
Office Building Fixed Asset
Input GST Credit Other Current Asset
Factory Building Fixed Asset
Input IGST Credit Other Current Asset
Furniture & Fixtures Fixed Asset
Input CGST Credit Other Current Asset
Office Equipment Fixed Asset
Input SGST Credit Other Current Asset
Computers & Laptops Fixed Asset
TDS Receivable Other Current Asset
Printers & Scanners Fixed Asset
Security Deposits Other Current Asset
Vehicles Fixed Asset
Accounts Payable Accounts Payable Plant & Machinery Fixed Asset
Sundry Creditors Accounts Payable Tools & Equipment Fixed Asset
Trade Payables Accounts Payable Intangible Assets (Goodwill, Fixed Asset
Bills Payable Other Current Liability
Patents)
Short-term Loan from Bank Other Current Liability
Accumulated Depreciation Other Expense
Overdraft from Bank Other Current Liability
Stock / Inventory Stock
GST Payable Other Current Liability
Raw Materials Stock
IGST Payable Other Current Liability
Work-in-Progress (WIP) Stock
CGST Payable Other Current Liability
Finished Goods Stock
SGST Payable Other Current Liability
Packing Material Stock Stock
TDS Payable Other Current Liability
Trading Goods Stock
Provident Fund Payable Other Current Liability
Income Income
ESI Payable Other Current Liability
Sales – Domestic Income
Professional Tax Payable Other Current Liability
Sales – Export Income
Sales Return Income Printing & Stationery Expense
Service Income Income Advertising & Marketing Expense
Commission Received Income Travelling & Conveyance Expense
Rent Received Income Repairs & Maintenance Expense
Interest Received Income Insurance Premium Expense
Discount Received Income Staff Welfare Expense
Miscellaneous Income Income Office Supplies Expense
Dividend Income Income Audit Fees Expense
Profit on Sale of Asset Income Professional Charges Expense
Forex Gain Income Legal Charges Expense
Expenses (Direct & Expense Depreciation Other Expense
Indirect) Freight Outward (Delivery Expense
Purchase A/c Cost of Goods Sold Charges)
Purchase Return A/c Cost of Goods Sold Packing Expenses Expense
Freight Inward Cost of Goods Sold Commission Paid Expense
Carriage Inward Cost of Goods Sold Interest Paid Other Expense
Import Duty Cost of Goods Sold Bank Charges Other Expense
Power & Fuel Expense Penalties & Fines Other Expense
Wages Expense Bad Debts Written Off Other Expense
Salaries Expense Provision for Doubtful Other Expense
Bonus Expense Debts
Rent Paid Expense Foreign Exchange Loss Other Expense
Telephone & Internet Expense Miscellaneous Expense Other Expense