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How to determine the beginning balance for your Accounts Receivable (AR) asset.

Beginning Balance for Accounts Receivable (AR)

It’s important to have correct Beginning Balances for all GL numbers in your Chart of Accounts in order to get meaningful financial reports. The beginning balance for your Accounts Receivable (AR) asset is no exception.

Typically your AR beginning balance should include:

  • Amounts owed by families
  • Amounts owed by agencies (DHS, DFACS, etc.)
  • Any other entries that affect AR (such as journal entries)

Option 1:
Contact your accountant. This is the best option for help determining all your beginning balances.

Option 2:
Use the ending balance from your prior fiscal year. You can get this within Procare v10 if you have data from last year in the Family Accounting and/or Agency Accounting modules. This will include items recorded on family and agency ledger cards, however if you have made other types of postings (journal entries, etc.) that affect AR they will not be shown on this report.

  1. If you have Agency Accounting go to Reports > Standard Reports > Agency Accounting > Total Charge Credit Summary > Total Summary – Primary & Agency Accounts. Choose a Date Range of the prior year. Use the Ending Balance, the amount owed at the end of the year, as your beginning balance for Accounts Receivable.
  2. If you have Family Accounting only (no agencies) go to Reports > Standard Reports > Family Accounting > Total Charge Credit Summary > Total Summary – Primary Accounts Only. Choose a Date Range of the prior year. Use the Ending Balance, the amount owed at the end of the year, as your beginning balance for Accounts Receivable.
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