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Data checklist: Opening and closing balances

Article author
Jonathon Plowman-Samson
  • Updated

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)
Note: Including an account description column is recommended for both files.

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