Summary
Opening and closing balances are not required for an MindBridge analysis, but when imported can be utilized for a number of features that provide additional insights:
- Completeness testing (example: Opening Balance + GL Activity = Closing Balance)
- Financial charts (for example the Balance Sheet depends on an Opening Balance)
- Financial ratios (that depend on an Opening Balance)
Learn about the data necessary when importing opening and closing balance files into MindBridge.
Opening balance
The opening balance reflects a company’s financial position after the previous fiscal year's income statement for the previous fiscal year has been closed and reconciled to equity. An opening balance must contain:
- The starting positions for assets, liabilities, and equity.
- $0 balances for revenue, expenses, and dividends accounts.
Closing balance
The closing balance reflects an organization's final position at the completion of a fiscal year, before income statement activity has been reconciled to equity. A closing balance must contain:
- The starting positions for assets, liabilities, and equity.
- Ending balances for revenue, expense, and dividend accounts.
Required columns
The minimum required columns for both opening and closing balance files include:
- Account Number
- Account Balance (debit position is positive, credit position is negative)
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