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Accounting: End of the Year Process

When using Accounting, there is no actual close out process as there used to be with older accounting software programs. Your accounts will never be "zeroed out". Your asset, liability, and equity accounts will carry over to the next year fully intact. Your income and expense accounts are programmed to only show the accumulation since the beginning of the calendar year and does not include previous years.

However, you can close out a year by locking accounting entries before a specific date (users with the Security Admin Permission only). There are also some useful end of year reports.

Lock Accounting Entries
Locking accounting entries will prevent users from changing historical accounting entries.

  1. In the Manage module, click Accounting.
  2. In the menu, click Lock.



  1. Enter the lock date in the box, then click OK. All entries made prior to the entered date will be locked. 

End of Year Reports
Two reports are available in the accounting section. 

  • General Ledger Details
  • Balance Sheets

General Ledger Details
This is a list of all transactions from all accounts.

  1. In the Manage module click Accounting.
  2. In the menu, click Reports, General Ledger Details.
  3. Use the calendars to select the date range. 
  4. Click OK to generate the report. See Complex Report System for a description of tool buttons.

Balance Sheet

  1. In the Manage module click Accounting.
  2. In the menu, click Reports, Balance Sheet.
  3. Use the calendar to select the date. 
  4. Click OK to generate the report. See Complex Report System for a description of tool buttons.

On the Balance Sheet two values are shown at the bottom of the Equity section:

  • Retained Earnings: The sum of the Net Income from all previous years.
  • Net Income: Income minus Expenses since the beginning of the year for which the report is displayed.

These are very closely related, and they incorporate the income and expense numbers into this report. They are handled automatically rather than requiring end-of-year entries to zero out the income and expense accounts.  You are still free to manually enter the closing transactions if that's what you are more familiar with.  In that case, when the software does the automatic calculations, it will just be dealing with zero amounts, so they would not have any effect.

 

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