Run the year-end routine to close your current financial year and start the new one. This process clears balances and makes year-end postings in your accounts. Profit and loss balances clear The system transfers balances from profit and loss nominal codes to the Profit and Loss Account nominal code (3200 by default) on the Balance Sheet. Remaining balances relate to new financial year transactions. The Profit and Loss Account nominal code adjusts by the profit or loss from the closed financial year.  NOTE: The software automatically sends year-end postings to the Profit and Loss Account nominal code, a control account. To check control accounts, click Settings, then Control Accounts. The Profit and Loss Control Account is Retained Earnings.
Balance sheet balances The system carries forward balance sheet nominal code balances into the new financial year. They transfer to the brought forward boxes in nominal records and included in year-to-date (YTD) values on the Balance Sheet report.
Audit trail postings The journals posted to clear the balances from the profit and loss nominal codes appear in the audit trail. The software creates a report listing these journals.  TIP: You can print the report, or export it to a file and print later.
Nominal records update In the nominal record Details tab, the software transfers future dated transactions from the Future column to the relevant month in the Actuals column Actual monthly balances for the closing financial year transfer to the prior year columns, allowing you to print comparison reports in the new financial year. NOTE: You can base your new year's nominal or departmental budgets on current year actuals or budgets for profit and loss nominal codes. These values transfer to the Budgets column, with an optional percentage increase.
Product records update The system transfers actual sales value and quantity sold in each product record to the Prior Year columns. Future dated transactions move to the relevant monthly box in each product record. If you base new year's stock budgets on current actuals or budgets, these values transfer to the Budgets column for your stock codes. You can apply an optional percentage increase.
Customer and supplier records update The software transfers YTD turnover values in the sales or purchase tab on all customer and supplier records to the Prior YTD box. Future dated transactions move to the relevant monthly box.
Financial year start date changes Your financial year start date moves forward by one year. To check this select Settings and then Financial Year.
Charities On a company using funds, the system posts year-end journals for transactions posted to a fund and a profit and loss code. The balance of these transactions posts to the fund nominal code set during the fund setup. The sum of this balance, previous year-end balances and the opening balance determines the fund's balance at the start of the new financial year.
Next steps When you're ready to run your year end, why not look at the following articles:
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