In Brixx the Opening Balance is a special tool that can be found under the Settings menu in the top left of the screen. It is used to record and measure the assets, liabilities and equity that make up the business at the very start of the plan. These make up the starting conditions of the plan.


Unlike the Balance Sheet report in Brixx which is automatically calculated you need to fill in some entries directly into the Opening Balance form. The reason for this is that the Opening Balance follows the same accounting principle as a balance sheet does (Assets - Liabilities = Equity) but how this equation is balanced depends on a number of factors and so cannot be automated.



Editable areas of the Opening Balance have a pencil icon. Click on the pencil to enter...



Assets:

Starting Cash

This represents the cash the business has in its bank accounts at the start of the plan. If the business has cash in several places, combine the totals and add them here.


Cash owed to you

If the business is owed any cash at the start of the plan, enter this here. Leaving the dropdown as 'no delay' will cause the cash amount to be paid to you immediately at the start of the plan (you will not see this cash amount in your reports, except as contributing to your opening cash position). If you wish to delay the payment of this cash, set up a delay. The cash movement will appear on your cash flow after the delay set.



Liabilities:

Cash you owe

If the business owes any cash at the start of the plan, enter this here. Leaving the dropdown as 'no delay' will cause the cash to be paid immediately at the start of the plan (you will not see this cash amount in your reports, except as contributing to your opening cash position). If you wish to delay the payment of this cash, set up a delay. The cash movement will appear on your cash flow after the delay set.



Equity:

Retained Earnings

If the business has retained earning (profit0 from the previous accounting period which is being ploughed back into the business, enter this amount here. You should enter the total amount of retained earnings from the previous business period. Equity balances Assets - Liabilities, so if you just had starting cash of £1000 and this was produced entirely by the business' retained earning from its previous business activities, you would enter £1000 Retained Earnings and £1000 Starting Cash.




The other entries in the Opening Balance do not have a pencil icon. These cannot be edited in the Opening Balance, but are populated by adding components to your plan. In the next guide we'll look at what these components are, and how the post their figures through to the Opening Balance. 


Continue to 3. Adding opening assets, liabilities and equity.