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Opening Balances

In case of an ongoing business, iPlanner prepares opening balance sheet in semi-automatic mode.

Nevertheless, our recommendation is: Start with a plan! You can review the opening balances later.

What does semi-automatic mode mean?

iPlanner creates several opening balance sheet entries automatically, based on plan inputs. Thus, if the plan itself is adequate, it is highly likely that the opening balance sheet is adequate as well. Nevertheless, the user should still enter some values directly (like for example initial balance of loans and existing fixed assets).

In detail
iPlanner calculates initial balance sheet values related to sales revenue and cost of sales, personnel expenses and other operating expenses automatically based on the input parameters for the first month of the plan.

For example, the balance sheet entry, "Trade Receivables," is calculated as:

Trade Receivables = (Receivables Collection Period in days x Sales Revenue) / 30

The same principle is used to calculate opening balance inventories, debts to trade creditors, employee-related liabilities, etc.

Nevertheless, some opening balance sheet values should be entered directly on the relevant worksheets.
More specifically:

•  Opening cash balance - Assets >  Cash worksheet
•  Existing fixed assets, as well as existing finance leases - Assets > Fixed assets worksheet
•  Paid-in capital - Funding > Paid-in capital worksheet
•  Existing loan commitments - Funding > Loans worksheet

The opening balance is visible on FINANCIAL PLAN > Balance sheet (first column).

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