From Single Entry System to Double Entry System

Discussion in 'General Accountancy Discussion' started by ummy, Oct 10, 2018.

  1. ummy

    ummy

    Joined:
    Oct 10, 2018
    Messages:
    1
    Likes Received:
    0
    Hello,

    Right now I am in a hot seat. I got this new job in a Marine Logistics Company. Since 2010, the company have been practicing single entry system using excel as a software. Now my first assignment is to migrate the whole accounting system to Peachtree Accounting Software which they have adopted to use at the last AGM and at the same time apply the double entry system of accounting.

    Now my question is, am I going to start from 2010 before I can ascertain the prior year adjustments that will be brought forward as beginning balances in the Peachtree Software or I should only carry forward this years 2018 balances?

    My most challenging scenario is the fact that they don't have the figure for Capital Introduced and some other faucets of the charts of accounts.

    Please I just need a professional advice here...in order not to make matters worse. Thanks.
     
    ummy, Oct 10, 2018
    #1
    1. Advertisements

  2. ummy

    Steve-LevelUp VIP Member

    Joined:
    Jul 18, 2016
    Messages:
    293
    Likes Received:
    41
    I do recommend starting from 2010 and attempt to build an opening trial balance. List your assets, liabilities and be sure that those are correct. the equity you may need to guess at, but you can perhaps look at legal documents or just put a placeholder called "opening 2010 equity" this makes it clear that you are unsure what this opening equity is.

    Then, you can go through and re-build the entries (a month at a time, not entry by entry). So long as you remember to verify your bank balances at the end of each month, it will serve as a fairly reliable way to make sure you haven't forgotten anything. There are risks of you recording an expense in the wrong period (eg, incurred in Feb, but paid in March) but given the time frames, that is probably not a material consideration.

    Continue doing this and it should help you get you to where you need to be.
     
    Steve-LevelUp, Oct 13, 2018
    #2
    ummy likes this.
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.