Quiz: Beginning balances

This is a true/false quiz.

Click the statement to see the answer.

1. The beginning balance date is the date you go live with Ajera.

   True. The beginning balance date is the date you plan to start entering current project and financial data.

2. You enter beginning balances to reflect your financial position at the time you will start using Ajera.

   True. This is defined by the beginning balance date you enter in Company > Preferences.

3. Typically, your beginning balance date is the month-end date of the last reconciled trial balance from your CPA.

   True.

4. Before your beginning balance date, you should enter the beginning balances that support in-house payroll and billing.

   True. If necessary, you can enter these other beginning balances after your beginning balance date: trial balance, bank account balances, year-to-date paid amounts for 1099 forms, and open vendor invoices.

5. If you are starting mid-year, you do not need to enter payroll amounts for employees.

   False. If you are starting mid-year, you must enter the year-to-date payroll amounts for each employee. This ensures that pays, taxes, deductions, and fringes calculate correctly going forward. This information is also needed for year-end reports and W-2 forms.

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