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Xero – Add Opening Balance to Bank Account, Credit Card, PayPal

by | 24 May 2018 | Bank Accounts

After setting up a bank account, credit card or PayPal account in Xero, you may need to add the opening balance of the account before importing the transactions. This is done through Xero’s conversion balance settings. In this tutorial, we will add opening balances for a newly set up bank account, credit card and PayPal account in Xero’s demo company.

Set Up the New Accounts

So you can follow the steps in this lesson properly, please set up a bank account, credit card and PayPal account in Xero’s demo company by following the steps in these tutorials:

Once you have finished, you should see all three accounts listed in the Bank Accounts section of Xero. To see this, go to Accounts → Bank Accounts from the main menu. All three accounts should have a nil opening balance and no transactions:

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Conversion Balances in Xero

Next, we need to go the conversion balances section in Xero. Click on Accounting → Advanced from the main menu to get there:

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Then, click on the Conversion Balances link in the Organisation section:

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You should now see a list of general ledger accounts and their debit or credit conversion balances. If you cannot see your new bank account, credit card or PayPal account on the list, click on the Show all accounts hyperlink:

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Now you should see all three of your new accounts near the top of the list. Here, you can add the opening balances of each account. For this exercise, let’s add the following opening balances:

  • Business Offset Account: type 10,000.00 in the debit column.
  • Company Credit Card: type 1,567.00 in the credit column.
  • PayPal: type 275.14 in the debit column.

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Scroll down to the bottom of the page and click on Save to lock in the opening balances.

Check the Results

Navigate back to the main Bank Accounts screen by going to Accounts → Bank Accounts. Now you should see the opening balances you typed in for your new bank account, credit card and PayPal account:

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That’s all you need to do to add an opening balance to a bank account, credit card or PayPal account in Xero.

The next step is to import transactions either by setting up an automated feed or by manually uploading them.

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