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Financial year end

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Summary

How to process your financial year end in Sage Accounting.

Description

At the end of your financial year, you run the year end routine to close the current year.

 NOTE: When you run the Trial Balance, it includes the previous year's Profit and Loss. Therefore, you don't need to run a year end or post a year end journal.

Resolution

Enter all transactions

Ensure you post all transactions for the financial year you're closing.

These can include:

  • Adjustments from your accountant posted as a journal
  • Month end postings such as prepayments, accruals, depreciation
  • All other outstanding transactions for the financial year

Produce your year end reports

As part of the year end process, we recommend you run the following reports:

Change your financial year end date

After printing your reports, change your financial year end date to the following year. This moves all your reports to the new financial year.

 NOTE: Don't change the Accounts Start Date. This is the date you started using Sage Accounting and doesn't relate to your financial year.

  1. From Settings, select Business settings.
  2. Then in the Financial settings section, choose Accounting dates & VAT.
  3. Select the last day of your new financial year in the Year End Date field.
  4. Scroll down and select Save.

Enter a lockdown date

You can set a lockdown date to prevent accidental entry of transactions for the previous year.

  1. From Settings, select Business settings.
  2. Then in the Financial settings section, choose Accounting dates & VAT.
  3. Enter the last day of your last financial year into the Year End Lockdown field.
  4. Scroll down and select Save.

 TIP: If you need to enter transactions you missed, remove the lockdown date then select Save.