CNA L&P - Beginning balances: How to enter

The timing of your conversion and other factors affect how you enter start-up data in ConnectNow Accounting (CNA). In our examples, we will use the calendar year as the fiscal year.

You can convert to CNA at the beginning of a fiscal year, convert during the year, or run parallel systems.  If you convert during the year, you have to decide whether you want to have comparison totals in CNA for the months prior to your conversion, or if you want to start in CNA where you left off in your old system. Running parallel systems requires entering every single transaction  (checks, deposits and journal entries) in BOTH systems.

In our examples, we use two methods to enter information in CNA prior to going live:

  • Process Beginning Balance: this feature in CNA is used to enter A,L,D, and N type accounts beginning balances, as of the first day of the fiscal year.
  • Journal Entries: you can enter your starting trial balance in a single journal entry, and/or you can enter the month-to-date (MTD) account totals. You would enter the MTD totals if you want comparison data.

In this article there are four examples.  The chart below summarizes the examples:

Example 1: You are converting to ConnectNow at the beginning of your fiscal year:

Step 1: Enter the December 31 balances using Process>Beginning Balances.  You can get the balances you need to enter by running a Statement of Financial Position from your old system.

Step 2: Stop using your old system and begin using CNA to record all transactions.

 

Example 2: You are converting to ConnectNow April 1 and do not want Jan-Mar monthly totals for comparison data.

Step 1: Using a journal entry, enter the March 31 Trial Balance from your old system.

  Step 2: Begin using CNA to record all transactions beginning with April.

 

Example 3: You are converting to ConnectNow April 1 and DO want Jan-Mar monthly totals for comparison data.

Step 1: Using a journal entry, enter the March 31 Trial Balance from your old system.

  Step 2: From your old system, run trial balance or other report that would show the MTD activity for January, for February, and for March. Enter each month's net change with a journal entry.

 

Example 4: Run parallel systems: this means you have to enter transactions in both your old system and ConnectNow. You would compare the two systems to make sure your records are accurate.

 

 

 

 

 

 

 

 

 

 

 

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