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October Insider Tip: Year End Closing
Halloween is just around the corner and that marks the end of the 3rd quarter. It also means it is time to plan for your year-end accounting. What better time to review AdLaw's GL features to accomplish a smooth year end?
When you close the last month of your fiscal year, AdLaw automatically sets up a new accounting year as follows:
- All expense and income accounts will be set to zero
- Asset, liability and capital opening balances will be set to the year-end balances
- Net income (profit/loss) from the closed year are added to “Previous Year Retained Earnings” account as defined in the system Control File.
Sometimes CPAs want to make changes to the closed year. If so, follow these steps:
- Select "Financials" and select "Closing Utilities"
- Enter the closed year journals and the journals as provided by your CPA
- Click "Closing Utilities", "Re-close Previous Year"
- This step posts the closed-year journals and recalculates the current year beginning balances.
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