At the end of your financial year, you will need to close your accounting period to be ready for the next one. Most companies would rely on their accountant to take this step for them.
Set the financial year from the Journal Entries page or from the Chart of Accounts page:
- Press the three dots to the right on the screen
- Select 'Fiscal Years'
- Set the dates for the end of your client's current financial year
- Select whether it's your client's first year of trading
- Press 'Done' to save
Before committing to a year-end closing, make sure your accounting books are ready:
- Reconcile each month in your financial year before closing.
- Close the latest VAT period of your financial year from your VAT return page.
- We recommend you select 'Include Historic' to include Unclosed Entries upon closing the VAT period:
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Close the financial year from the Chart of Accounts page
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Click the three dots to the right of the screen:
- Select 'Fiscal Years'
- Click the 'Close Fiscal Year' Button
- Follow the onscreen instructions to close your client's end-of-year accounts:
Notes:
The year-end closing will set your 'Current accounting window' start date to the first date in the new financial year.
The closing procedure will balance all income statement accounts to 0.00 and post the difference between income and expenses to the retained earnings in your balance sheet.
The income statement on your first day of the new financial year will then be empty and your balance sheet will show the opening balance for the new year.