LessonbookWhen the balance brought forward is wrong
"If you use the balance brought forward option, it is more often [than] not, wildly inaccurate." That line is from a review of music teacher software on Capterra. A balance brought forward looks simple: what the family owed last month, plus this month. The trouble is that the figure brought forward is a snapshot of something that can still change.
What "balance brought forward" actually does
When an invoice shows a balance brought forward, the system has taken the total from an earlier invoice and added it as a new line. From that moment the figure lives a life of its own. If the old invoice is corrected later, or a payment arrives that belongs to it, the figure already brought forward is not necessarily updated.
Three ways it goes wrong
1. The previous invoice was corrected after the balance was brought forward, for example because a lesson was cancelled. The amount brought forward is still the old one. 2. A payment was dated before the balance was brought forward, but entered after. It is taken off the old invoice, and the balance brought forward never sees it. 3. Unpaid lessons appear both on the old invoice and inside the balance brought forward, so they are counted twice when the family looks at both. All three have the same cause: two copies of the same amount.
A running balance instead
A bank statement never brings a balance forward. It shows the opening balance for the period, worked out from everything before it, and then each transaction with the balance after each line. Do the same with lessons and you need nothing brought forward: October's opening balance is simply the sum of every line before 1 October. If a September line is corrected, October's opening balance changes with it, because it is recalculated rather than copied.
Checklist before you send the next invoice
• Is every lesson since the last statement marked, including the cancelled ones? • Is every payment recorded against the right family, on the date the money arrived? • Does each correction appear as its own line with a reason, rather than as a changed figure? • Does the running balance on the last line match what you yourself believe the family owes?
Frequently asked questions
Do I have to invoice every month?
No. With a running balance you can send a statement whenever it suits you, for example at the start and middle of term. The balance is right whenever it is read.
How do I show just this month?
Show the month's lines, with the balance before the first line as the opening balance. It is worked out from the earlier lines, not copied.
What do I do about an old balance brought forward that is already wrong?
Go back to the last date you know the family's balance was right, record everything after it as dated lines, and add one adjustment with a reason if a difference remains that you cannot trace.