Troubleshoot financial year closing

How do I close my books on a monthly basis?

If you want to close your books on a monthly basis and prevent postings before that date, use the Prevent posting before date in the Preferences dialog box. When you close January 2005, you change the date to 1/2/2005; subsequently, no postings are recorded before that date. This occurs even if the financial year is still open. Never use Close Financial Year to close on a monthly or quarterly basis.

How do I close my books on a yearly basis?

When you want to close the financial year, on the Company menu, click Manage Financial Year.

Before you close the financial year, ensure that all postings and corrections have been made for the financial year you are about to close. Speak to your accountant about which transactions must be recorded. These transactions are typically related to corrections by the end of the year, such as moving prepaid expenses or posting depreciation costs.

How do I post transactions in a closed financial year?

If you have closed a financial year, you cannot post before the first date of the new financial year, even if you have set Prevent posting before to an earlier date.

Follow these steps to post transactions in a closed financial year:

  1. Open the financial year.

  2. Make the corrections or postings.

  3. Close the financial year again.

Be aware that when you close the financial year, Microsoft Office Accounting 2008 creates a journal entry to move the balances of all Income and Expense accounts to your Retained Earnings account.

If you open this financial year again, these postings are not reversed. When you close the financial year again, only the new postings you make are moved to your Retained Earnings account.

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