The initial seat is the first and most important of all accounting entries in the ledger . These are the documents collected at the beginning of the exercise on the company's financial and financial condition at that particular time. Periods cannot be started in the accounting, general ledger or any financial accounting record of a company without early access with Real Estate Accounting.

The initial seating begins the entire accounting cycle of the company whose term is one year. From that, every economic activity that the business develops during this period is recorded. In most companies, they usually coincide with the calendar year, which begins January 1 and ends December 31. In it, each load or asset is collected, i.e. income and expenses. Given this situation, early admission may not include costs or income. In a way, the initial entry initiates the ledger because once entered, the movement must be transferred to the book. To understand how to set it up and get started, continue reading this article we have dedicated.



Constitution of the first starting position


Early access is the first initial entry done when starting a business , that is, when creating / creating a new business. There are two cases where the initial admission must be made, and this is the first case.


In this new first entry, all the contributions the partners make are reflected. They own all the assets and can be both financial and real estate, land, furniture. All this is marked in the "Must" section and then in the "Have" stock portfolio , with articles on the composition of the company.

After the initial organizational entry is created, all expenses incurred by a company combination such as tax are recorded as equity. After these entries, you can continue to observe all the own expenses, such as invoices, salaries, taxes, and income from sales or services received from the activity.

After the calendar year and the end of the accounting cycle, the closing entry must be made. Accounts must be entered to leave them in zero balance. In this way, new startups can be launched for the next financial year, old values ​​can be transferred to new ones. Following the same trend, look at assets in "debit" accounts and liabilities in "credit" accounts.

Early access to an already established company

The first accounting entry made for each financial year is the opening seat. This comes after the closing entry, which is the last accounting entry made at the end of the year.

The initial entry is followed by the same as the previous case, but starts with the company already created. The available data may vary from one case to another, but it is usually related to three cases. The first is by transferring the values ​​from expiration to initial entry. In the second case pending the previous year or in the third case when there was no data.



Opening the seating example

We are going to make a hypothetical example of a company's early entry into what we call the 5 Finance 521SL call. After completing the closing entry for the last fiscal year, we will proceed to start the initial entry for the new accounting cycle. At the end of the year we have the following items in our balance, for example:

Active: Machinery 3.000 Euros. The money is 500 euros. Customers 600 euros. The stock is 800 euros.

Passive: capital 1.000 euros. Reservation of 400 euros. Loans of 800 euros.

All parts of the assets are first identified in the "Must" section, then the "Liabilities" described above are addressed in descending order (which is a continuation).

As mentioned above, the company can now launch initial entry for the first time if it is integrated. In this case they are usually very simple data and there is no initial balance because they are usually cash or banks (due to contributions made by different partners). We can find ourselves in the context of an existing company with an accounting program. In this case, the program itself is automated and initial access begins at the end of the previous cycle. If someone else keeps this accounting, there is a little more work and it is important to close all accounts and then start the initial entry.

In practice, there is no general breakdown as "machinery" or "consumer", because the idea was to simplify it. Typically each client will have a file, and the company will shut down for different assets.