Your online accounting file is a multi-year file so there isn’t a closing off like there is in some other accounting packages. You can lock the transactions in your file up to this date but your transactions aren’t purged like some software does. Removing your transactions doesn’t allow you to monitor your business or investment performance effectively over many years. It also doesn’t allow you to maintain a high quality asset register or depreciation records.The year end process is greatly simplified in an online accounting application. Your accountant at the end of the year can help you with closing entries specific to your business if you are unfamiliar with the process. Some common examples are:
- Depreciation using journal entries.
Depreciation of Assets
- Moving current earnings to retained earnings for a company using a journal entry.
Moving Current Earnings to Retained Earnings at Year End - Accrual of income or expenses not yet earned or expended.
Accruals - Write-offs of bad debts.
Writing off a Sale - Accretion of assets that have changed in value.
FAQ’s
So how do I run reports for a single year if it’s a multi-year system?
When you want to run a report for a financial year, choose the date range for the relevant period you are after in the filters. Some examples:
- Profit and Loss for a organisation balancing 30 June each year would use the date range in the filter for the report of 01/07/05 to 30/06/06 as an example.
- For this same organisation the Balance Sheet report for the end of 2006 financial year would use 30/06/06.
