End of the Year Accounting Process

When using the Accounting system in the Manage Module, there is no close out process. The accounts will never be zeroed out. The asset, liability, and equity accounts will carry over to the next year fully intact. The income and expense accounts are programmed to only show the accumulation since the beginning of the calendar year and does not include previous years.

While there is no close out process, there are some useful end of year reports that may be run (see below). To prevent users from editing accounting entries that may change the historical information on these reports, lock accounting entries before a specific date.

Lock Accounting Entries

Only users with the Security Admin permission may lock accounting entires.

  1. In the Manage module, click Accounting.
  2. Click Lock to open the Lock Accounting window and enter the lock date.
  3. 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: This is a list of all transactions from all accounts.

  1. In the Manage module click Accounting.
  2. Click Reports and select 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: This is the total asset, liability, and equity as of the date selected in the main Accounting window.

  1. In the Manage module click Accounting.
  2. Click Reports and select 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:

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.