The opening entry or the opening of accounting is the first entry made in accounting and is performed when starting the activity or at the beginning of an economic year.

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The opening entry is used together with the accounting closing entry to separate one economic year from another.

To put ourselves in a bit of context, let’s mention that the closing of accounting is the operation through which the recording of operations is paralyzed, either to close the year or to close the accounting definitively due to the closure of the company.

The closing entry will settle all open accounts and this will allow obtaining an overview of the company’s state at that specific moment.

The opening entry will initiate or restart accounting and will be created by including the Asset accounts of the Balance Sheet and crediting those of Liabilities.

Depending on whether accounting starts for the first time or if it already started in another year and was closed, the concepts to include will be different.

• If accounting starts from 0: In this case we will have to include the contributions of the partners and the expenses of the beginning of the activity.

• If accounting is being restarted: We would have to take the accounting closing entry as a point of reference, since technically it will be the same only in reverse.

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We hope this information is very useful to you.