Setting up a company

[thumbliner]

Hello guys,

I am very very new to accounting. Yet, I am responsible for setting up a company in a new software and get it started functionally in 10 days. So please clarify some accounting doubts that I have. These questions might sound dumb but please bear with me.

1. I setup the chart of accounts and all. Now, I am planning to enter the beginning balances of my customers and vendors in the software. Do I have to separately update the beginning balance of my accounts payable and accounts receivable?

2. When I enter the beginning balance of account payable and receivable, do I have to do any other entry on any other account to balance it out? I do know that double entry bookkeeping requires me to balance it out somehow. I am just confused if it is a GAAP to do so while setting up a running company on a new software.

3. I entered the inventory with quantity and prices. Now, do I have to sum up the entire value and enter it as the beginning balance of my inventory account?

4. After entering that, should I also enter a beginning balance to owner's contribution equity account in order to square off the inventory?



Your guidance will be valued. Thanks.

 

[kirby]

You should have been given the latest balance sheet and income statement. Then your goal is to load that into the software and also enter the detail subledgers like accts payable, fixed assets, accts receivable and then make sure those agree to the balance sheet. Did you get the latest balance sheet and income stmt?