Solution Properties
Solution ID:
200427112156484
Last Modified Date:
Thu May 11 15:57:34 UTC 2023
Taxonomy Path:
Case category//How do I...//year-end
Author:
[email protected]
How to change the financial year
Description

When you first create your company in Sage 50 Accounts, you enter the month and year that your financial year starts. This financial year setting is mandatory, and once set, your financial year runs for 12 months from this start date.

Normally, your financial year starts in the same month each year. However, occasionally you may need to change it, e.g. to fall in line with a new parent company's financial year, or for accounting purposes. Let's take a look at how to do this.

Cause
Resolution

This guide explains how to change the financial year start date setting in Sage 50 Accounts. For more detailed information about the process of shortening or extending the financial year, please refer to the following guides:

How to extend the financial year

How to shorten the financial year

 NOTE: This guide does not run the Year End process, for information about this process, please see our How to complete a financial year end guide.

What happens when you change the financial year start date

When you use the Financial Year option to change your financial year, the following values recalculate:

Nominal balancesThe monthly balance on each nominal code recalculates based on the transactions on your audit trail. You can view these balances on the Details tab of each nominal record.

The transactional history is retained unless you run the Clear Audit Trail routine.
Customer and supplier turnoverThe year to date turnover figures for your customers and suppliers recalculates based on the transactions on your audit trail. You can view these balances on the Sales or Purchases tab of each customer or supplier record.
Product monthly sales balancesThe monthly sales balances on the product records recalculate based on your product transactions. You can view these balances on the Sales tab of each product record.

TIP: If you've cleared the audit trail or stock transactions up to a date in the new financial year, the monthly balances don't calculate correctly up to this period. This is because they're based only on the transactions that are left. However, balances for future periods will be correct. 

Running a financial year change removes all prior year and budget values from the nominal codes. Without this information you can't produce prior year or budget reports. However, it's possible to retain this information by exporting and importing the data. Use can our How do I import data? guide do to this.

Before changing your start date

  1. Click File then click Back up and, when prompted to check your data, click Yes.
  2. If you have any errors listed in your data report, resolve them first.
  3. To complete your backup, follow the on-screen prompts. Use our Back up your data guide for help with this.

Change your financial year start date

  1. Click Settings then click Financial Year and click Change.
  2. If you have checked your data and created a backup click Yes then click Yes.
  3. Set the required financial year start month and year then click OK.
  4. Click Yes then click OK and click OK.
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