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Opening Balances

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

Our main recommendation is: Start with a plan! You can review the opening balances later.

What does semi-automatic mode mean?

iPlanner creates many opening balance sheet entries automatically, based on plan parameters. Thus, if the plan itself is adequate (corresponds to the business model), it is highly likely that the opening balance sheet is adequate as well. Nevertheless, the user should still enter some values directly (initial balance of loans, existing fixed assets, etc.).

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 > Flexible loans worksheet

The opening balance is viewable in BUSINESS PLAN > Financials > Balance sheet (first column).

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