setting bank balance to zero

Question asked by Jane Saunders 11 years ago

Hi I want to reset my bank balance back to zero along with HMRC and Corp tax. These have all been dealt with manually up to 5th May. I need to reset these balances back but without "reset of all my account data" as I need to keep all my invoicing customers history and new invoices on the system. Have used the used system mainly for invoicing but now venturing to use the system for customers suppliers etc for this year 5/5/14 onwards I have locked the invoicing period for last year Any help please

Thank you Jane

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7 Replies

To better explain perhaps without being misleading...

It IS physically possible to get the bank account down to zero ( same with the VAT and CT) but to do so will affect something else within the accounts. Without boring you with a history of double entry bookkeeping, each transaction has two sides and those sides must balance. It therefore stands to reason that should you wish to amend the bank account, another nominal within the accounts will also need 'amending' to make the transaction balance.

If you don't ever intend to use Clear Books as a full blown accounting package from which you can compile your year end accounts then by all means get everything zero'd off as desired. However, should that not be the case, i'd urge you to get Clear Books into a position where it matches the true reality of the books sooner rather than later. Only once the past is correct can you look to move forward...

Best answer
11 years ago

How did the balances get in there in the first place?

11 years ago

They were set up when we originally started in 2013 and obviously just accumulated with invoices being paid over the year. I just want to clear it off. Same with vat

11 years ago

Sole trader or limited company?

11 years ago

You can't just zero off the bank account in that case, the bank account needs to reflect what's truly in the account at any given point.

Have you got an accountant who you could perhaps give access to so they can bring everything up to date within the system so it reflects the reality?

11 years ago

To better explain perhaps without being misleading...

It IS physically possible to get the bank account down to zero ( same with the VAT and CT) but to do so will affect something else within the accounts. Without boring you with a history of double entry bookkeeping, each transaction has two sides and those sides must balance. It therefore stands to reason that should you wish to amend the bank account, another nominal within the accounts will also need 'amending' to make the transaction balance.

If you don't ever intend to use Clear Books as a full blown accounting package from which you can compile your year end accounts then by all means get everything zero'd off as desired. However, should that not be the case, i'd urge you to get Clear Books into a position where it matches the true reality of the books sooner rather than later. Only once the past is correct can you look to move forward...

Best answer
11 years ago

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