Balance Sheet basics

How to fill opening balances (UK)

Opening balances are the starting point of your balance sheet: they usually come from last year’s closing balances. For first-year companies, most lines are often 0, but share capital may need a small initial amount (e.g. £100).

Where opening balances come from

Most common source: last year’s closing balance sheet.

If last year’s accounts exist: use last year’s closing balances as this year’s opening.
If it’s the first year: most assets/liabilities may be 0, but share capital may need to be entered.

If the balance sheet doesn’t balance

We treat this as a blocker before you can file.

Core equation: Assets = Liabilities + Equity

First confirm that cash at bank, debtors, and creditors have the correct sign/direction
Check share capital / retained earnings (for first year, retained earnings is often 0)
If you have a director’s loan or bank loan, ensure it’s included under liabilities