---
title: General Ledger Opening Balances - Overview & Best Practices
description: Opening Balances, General Ledger
---

[Skip to content](https://knowledgebase.counta.com/knowledge/general-ledger-opening-balances-overview-best-practices#main-content)

English

Show submenu for translations

![AccountAbility\_logo\_primary\_fullcolor-1.png\]](https://knowledgebase.counta.com/hs-fs/hubfs/AccountAbility_logo_primary_fullcolor-1.png?height=40&name=AccountAbility_logo_primary_fullcolor-1.png)

- [COUNTA by Accountability](https://8829720.hs-sites.com/counta-by-accountability)

Open main navigation

Close main navigation

- [COUNTA by Accountability](https://8829720.hs-sites.com/counta-by-accountability)
- English
  
  Show submenu for translations

 How can we help you?

- There are no suggestions because the search field is empty.

1. [COUNTA Help Center](https://knowledgebase.counta.com/knowledge?hsLang=en)
2. [General Ledger](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en)
3. [General Ledger Setup & Postings](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#general-ledger-setup-postings)

July 9, 2026

# General Ledger Opening Balances - Overview & Best Practices

## What are Opening Balances? 

Opening Balances represent the starting financial position of your business at the beginning of a new financial year. In Accountability, they are created from the prior year’s closing balances and used to carry forward Balance Sheet accounts such as Cash, Accounts Receivable, WIP, and Payables into the new year.

---

**How they work**

At year end:

- Profit & Loss accounts are closed to Retained Earnings
- Balance Sheet accounts carry forward into the next year

This carryforward requires running the Opening Balance process.

**Steps:**

- Go to **Set Up Files \> Company Settings**
- Select **Create GL Opening Balances**
- Enter the new financial year
- Click **Create**

**![Screenshot 2026-07-07 at 2.07.31 PM](https://knowledgebase.counta.com/hs-fs/hubfs/Screenshot%202026-07-07%20at%202.07.31%20PM.png?width=670&height=151&name=Screenshot%202026-07-07%20at%202.07.31%20PM.png)**

---

**Why they are important**

Opening Balances ensure the new year begins with the correct Balance Sheet values. Without them, those accounts may appear as zero and reports may display warnings or inconsistencies.

---

**System message**

**![Screenshot 2026-07-09 at 4.53.20 PM](https://knowledgebase.counta.com/hs-fs/hubfs/Screenshot%202026-07-09%20at%204.53.20%20PM.png?width=670&height=221&name=Screenshot%202026-07-09%20at%204.53.20%20PM.png)**

This means the system has detected that Opening Balances are either missing or out of date, typically due to changes made in the prior year. To resolve this, select **Update (Year) GL Opening Balances Now** to refresh the balances.

---

**Verification**

To confirm Opening Balances exist:

- Go to **Accounting \> General Ledger \> General Ledger Transaction Search**
- Select Year, Filter for **Opening Balance (Month 00) only**
- Select a Balance Sheet account

If no results appear, Opening Balances have not been created.

---

**Best practice**

Create Opening Balances at the start of each financial year and run the process again if changes are made to prior‑year data. Opening Balances carry forward Balance Sheet values from one year to the next and must be created to ensure accurate financial reporting. 

- [Product Updates](https://knowledgebase.counta.com/knowledge/product-updates?hsLang=en#main-content)

    - [Live](https://knowledgebase.counta.com/knowledge/product-updates?hsLang=en#live)
- [Tutorial Video Library](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#main-content)

    - [General Navigation](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#general-navigation)
    - [Time and Task](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#time-and-task)
    - [Job Management - Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#job-management-basics)
    - [Estimate Management - Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#estimate-management-basics)
    - [Estimate Management - Advanced](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#estimate-management-advanced)
    - [Purchase Order Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#purchase-order-basics)
    - [Production Invoice Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#production-invoice-basics)
    - [Sundry Invoice Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#sundry-invoice-basics)
    - [Receipts Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#receipts-basics)
    - [Supplier Invoice Management Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#supplier-invoice-management-basics)
    - [Payment Basics](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#payment-basics)
    - [Expenses & Credit Cards](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#expenses-credit-cards)
    - [Reporting](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#reporting)
    - [Master Files](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#master-files)
    - [Manage](https://knowledgebase.counta.com/knowledge/tutorial-video-library?hsLang=en#manage)
- [Mobile App](https://knowledgebase.counta.com/knowledge/mobile-app?hsLang=en#main-content)

    - [What's New](https://knowledgebase.counta.com/knowledge/mobile-app?hsLang=en#whats-new)
    - [Setup and Configuration](https://knowledgebase.counta.com/knowledge/mobile-app?hsLang=en#setup-and-configuration)
- [FAQs](https://knowledgebase.counta.com/knowledge/faqs?hsLang=en)
- [Navigation and General](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#main-content)

    - [Tips & Tricks](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#tips-tricks)
    - [Customization](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#customization)
    - [Setup](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#setup)
    - [Support](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#support)
    - [My Dashboard](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#my-dashboard)
    - [My Messages](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#my-messages)
    - [Security](https://knowledgebase.counta.com/knowledge/navigation-and-general?hsLang=en#security)
- [Time and Tasks](https://knowledgebase.counta.com/knowledge/time-and-tasks?hsLang=en#main-content)

    - [My Time](https://knowledgebase.counta.com/knowledge/time-and-tasks?hsLang=en#my-time)
    - [Timesheet Proxy](https://knowledgebase.counta.com/knowledge/time-and-tasks?hsLang=en#timesheet-proxy)
    - [Time Reports](https://knowledgebase.counta.com/knowledge/time-and-tasks?hsLang=en#time-reports)
    - [Time Posting](https://knowledgebase.counta.com/knowledge/time-and-tasks?hsLang=en#time-posting)
    - [Tasks](https://knowledgebase.counta.com/knowledge/time-and-tasks?hsLang=en#tasks)
- [Manage](https://knowledgebase.counta.com/knowledge/manage?hsLang=en#main-content)

    - [Leave](https://knowledgebase.counta.com/knowledge/manage?hsLang=en#leave)
    - [Employee Expense Summary](https://knowledgebase.counta.com/knowledge/manage?hsLang=en#employee-expense-summary)
    - [Expense Claims](https://knowledgebase.counta.com/knowledge/manage?hsLang=en#expense-claims)
    - [Credit Cards](https://knowledgebase.counta.com/knowledge/manage?hsLang=en#credit-cards)
    - [Inventories](https://knowledgebase.counta.com/knowledge/manage?hsLang=en#inventories)
- [Approve](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#main-content)

    - [Supplier Invoices](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#supplier-invoices)
    - [Expense Claims](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#expense-claims)
    - [Credit Cards](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#credit-cards)
    - [Purchase Orders](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#purchase-orders)
    - [Client Job Invoices](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#client-job-invoices)
    - [Weekly Timesheet](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#weekly-timesheet)
    - [Journals](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#journals)
    - [Leave](https://knowledgebase.counta.com/knowledge/approve?hsLang=en#leave)
- [Jobs](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#main-content)

    - [Jobs](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#jobs)
    - [Estimates](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#estimates)
    - [Revenue Tracker](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#revenue-tracker)
    - [Resource Tracker](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#resource-tracker)
    - [Purchase Orders](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#purchase-orders)
    - [Internal Charges](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#internal-charges)
    - [Job Cost Transfers](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#job-cost-transfers)
    - [Files](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#files)
    - [Job Reports](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#job-reports)
    - [Job Summaries](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#job-summaries)
    - [Campaigns](https://knowledgebase.counta.com/knowledge/jobs?hsLang=en#campaigns)
- [Media](https://knowledgebase.counta.com/knowledge/media?hsLang=en#main-content)

    - [Media Accounting](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-accounting)
    - [Media Summaries](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-summaries)
    - [Media WIP Take Up](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-wip-take-up)
    - [Media Reports](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-reports)
    - [Media Setup](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-setup)
    - [Media Insertion Orders](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-insertion-orders)
    - [Media Estimates](https://knowledgebase.counta.com/knowledge/media?hsLang=en#media-estimates)
- [Accounting](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#main-content)

    - [General Ledger Accounts](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#general-ledger-accounts)
    - [Receivables](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#receivables)
    - [Payables](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#payables)
    - [Revenue Tool](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#revenue-tool)
    - [General Ledger](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#general-ledger)
    - [Budgets](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#budgets)
    - [Prepayments](https://knowledgebase.counta.com/knowledge/accounting?hsLang=en#prepayments)
- [Master Files](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#main-content)

    - [Prospects](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#prospects)
    - [Clients](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#clients)
    - [Employees](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#employees)
    - [Task Types](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#task-types)
    - [Suppliers](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#suppliers)
    - [Contacts](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#contacts)
    - [Update](https://knowledgebase.counta.com/knowledge/master-files?hsLang=en#update)
- [Setup Files](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#main-content)

    - [Report Setup](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#report-setup)
    - [Set Up Options](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#set-up-options)
    - [User Access Groups](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#user-access-groups)
    - [Currencies](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#currencies)
    - [Tax Codes](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#tax-codes)
    - [Withholding Tax Codes](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#withholding-tax-codes)
    - [Bank Feed](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#bank-feed)
    - [Custom Codes](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#custom-codes)
    - [Approval & Posting Settings](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#approval-posting-settings)
    - [Custom Data](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#custom-data)
    - [Office](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#office)
    - [Company Settings](https://knowledgebase.counta.com/knowledge/setup-files?hsLang=en#company-settings)
- [Setup Options](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#main-content)

    - [Accounting Options](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#accounting-options)
    - [General Options](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#general-options)
    - [Report Setup](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#report-setup)
    - [Other Options](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#other-options)
    - [Timesheet Options](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#timesheet-options)
    - [Currencies](https://knowledgebase.counta.com/knowledge/setup-options?hsLang=en#currencies)
- [General Ledger](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#main-content)

    - [Journals](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#journals)
    - [General Ledger Accounts](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#general-ledger-accounts)
    - [General Ledger Reports](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#general-ledger-reports)
    - [Bank Reconciliation](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#bank-reconciliation)
    - [WIP Take Ups](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#wip-take-ups)
    - [Retainers](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#retainers)
    - [FX Revaluations](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#fx-revaluations)
    - [Fixed Assets](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#fixed-assets)
    - [General Ledger Setup & Postings](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#general-ledger-setup-postings)
    - [Posting Options](https://knowledgebase.counta.com/knowledge/general-ledger?hsLang=en#posting-options)
- [Revenue Recognition and Tools](https://knowledgebase.counta.com/knowledge/revenue-recognition-and-tools?hsLang=en#main-content)

    - [Accrued Revenue](https://knowledgebase.counta.com/knowledge/revenue-recognition-and-tools?hsLang=en#accrued-revenue)
    - [Deferred Revenue](https://knowledgebase.counta.com/knowledge/revenue-recognition-and-tools?hsLang=en#deferred-revenue)
    - [Revenue Recognition](https://knowledgebase.counta.com/knowledge/revenue-recognition-and-tools?hsLang=en#revenue-recognition)
- [Receivables](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#main-content)

    - [Production Invoices](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#production-invoices)
    - [Receipts](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#receipts)
    - [Sundry Invoices](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#sundry-invoices)
    - [Reports](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#reports)
    - [Other](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#other)
    - [Client Summary Invoices](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#client-summary-invoices)
    - [Client Job Invoices](https://knowledgebase.counta.com/knowledge/receivables?hsLang=en#client-job-invoices)
- [Payables](https://knowledgebase.counta.com/knowledge/payables?hsLang=en#main-content)

    - [Supplier Invoices](https://knowledgebase.counta.com/knowledge/payables?hsLang=en#supplier-invoices)
    - [Payments](https://knowledgebase.counta.com/knowledge/payables?hsLang=en#payments)
    - [Reports](https://knowledgebase.counta.com/knowledge/payables?hsLang=en#reports)
    - [Incoming Supplier Invoices](https://knowledgebase.counta.com/knowledge/payables?hsLang=en#incoming-supplier-invoices)
    - [Talent](https://knowledgebase.counta.com/knowledge/payables?hsLang=en#talent)
- [Budgets & Forecasts](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#main-content)

    - [Expense Budgets](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#expense-budgets)
    - [Payroll Budgets](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#payroll-budgets)
    - [Revenue Tracker](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#revenue-tracker)
    - [Budgets](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#budgets)
    - [Cashflow Budgets](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#cashflow-budgets)
    - [Budget Setup](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#budget-setup)
    - [Budget Reports](https://knowledgebase.counta.com/knowledge/budgets-forecasts?hsLang=en#budget-reports)
- [Training Packet](https://knowledgebase.counta.com/knowledge/training-packet?hsLang=en#main-content)

    - [Admin](https://knowledgebase.counta.com/knowledge/training-packet?hsLang=en#admin)
    - [MDM](https://knowledgebase.counta.com/knowledge/training-packet?hsLang=en#mdm)
    - [Time Management](https://knowledgebase.counta.com/knowledge/training-packet?hsLang=en#time-management)
    - [Expense Management](https://knowledgebase.counta.com/knowledge/training-packet?hsLang=en#expense-management)
    - [Job and Estimate Management](https://knowledgebase.counta.com/knowledge/training-packet?hsLang=en#job-and-estimate-management)
- [API & Integrations](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#main-content)

    - [Accountability API](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#accountability-api)
    - [Integrations](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#integrations)
    - [Plaid Integration](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#plaid-integration)
    - [Media Finance](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#media-finance)
    - [Payroll](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#payroll)
    - [Project Management](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#project-management)
    - [Open Banking Providers](https://knowledgebase.counta.com/knowledge/api-integrations?hsLang=en#open-banking-providers)
- [Reporting](https://knowledgebase.counta.com/knowledge/reporting?hsLang=en#main-content)

    - [Financial Statements](https://knowledgebase.counta.com/knowledge/reporting?hsLang=en#financial-statements)
    - [Client Profitability](https://knowledgebase.counta.com/knowledge/reporting?hsLang=en#client-profitability)
    - [Billings and Revenue](https://knowledgebase.counta.com/knowledge/reporting?hsLang=en#billings-and-revenue)
- [Sales](https://knowledgebase.counta.com/knowledge/sales?hsLang=en)
- [Media Finance](https://knowledgebase.counta.com/knowledge/media-finance?hsLang=en#main-content)

    - [Mediaocean Integration](https://knowledgebase.counta.com/knowledge/media-finance?hsLang=en#mediaocean-integration)
    - [Freewheel Integration](https://knowledgebase.counta.com/knowledge/media-finance?hsLang=en#freewheel-integration)
    - [Media Finance](https://knowledgebase.counta.com/knowledge/media-finance?hsLang=en#media-finance)
- [Intercompany](https://knowledgebase.counta.com/knowledge/intercompany?hsLang=en#main-content)

    - [Studio](https://knowledgebase.counta.com/knowledge/intercompany?hsLang=en#studio)
- [Talent Sponsorship](https://knowledgebase.counta.com/knowledge/talent-sponsorship?hsLang=en)
- [Taxes](https://knowledgebase.counta.com/knowledge/taxes?hsLang=en)
- [Implementation and Onboarding](https://knowledgebase.counta.com/knowledge/implementation-and-onboarding?hsLang=en)
- [Work In Progress (WIP)](https://knowledgebase.counta.com/knowledge/work-in-progress-wip?hsLang=en)
- [Expenses](https://knowledgebase.counta.com/knowledge/expenses?hsLang=en)
- [Data Analysis](https://knowledgebase.counta.com/knowledge/data-analysis?hsLang=en)
- [AI](https://knowledgebase.counta.com/knowledge/ai?hsLang=en#main-content)

    - [MCP Servers](https://knowledgebase.counta.com/knowledge/ai?hsLang=en#mcp-servers)

[![Chill listening crop-3](https://knowledgebase.counta.com/hs-fs/hubfs/AccountAbility_logo_primary_fullcolor-2.png?width=150&height=24&name=AccountAbility_logo_primary_fullcolor-2.png "Chill listening crop-3")](http://www.counta.com)

Accountability 2026

Copyright © 2026, Accountability