As a matter of interest, given that the data will be handed to the accountant on Date-1, the accountant will do his bit and provide opening balances on Date-2, and there can be some time between Date-1 and Date-2*, why do you suggest leaving the year open until you have the opening balances?
The obvious disadvantages to that method are:
Firstly, depending on the software in use, you may not be able to produce monthly figures in the new financial year until the accountant has finalised the year end and provided the opening balances.
Secondly, by keeping the year open, there is a risk that should any transactions inadvertently be entered with dates in the open year (rather than the new one), because they've occurred after the accountant has had the year's data, they will not be reflected in the accounts - and won't be picked up in the new year, because they'll be part of the subsequently closed year in the software.
Closing the year immediately after supplying the accountant with the data avoids both of those problems.
* I know a few cases where that would result in the previous year's accounts could be open for seven or eight months, so that's seven or eight months where they'd have no easily produced monthly figures.
-- Edited by VinceH on Tuesday 12th of March 2013 03:54:52 PM
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
I'd recommend you tun your year end procedure first.
The reason for this is because it's better (IMO) to run the year end procedure immediately after providing your data to the accountant, whereas you won't get the opening balance adjustments until the accountant has completed his/her part.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Thank you for your replies. All of my clients are catch up bookkeeping at the moment (1 year-18 months)so I am having to wait a while for the journals from the accountant so probably best I run the year ends before hand.
Run your year end as soon as all the information for the year is included. So should probably be done a week or so after the year end.
Make sure you take a back up before your run the year end as the accountant will need this to prepare the accounts.
Doesnt make any difference to the accountant when you run the year end provided you keep a copy of the file before you balance forward.
The accountant will give you opening balance adjustments once they have done the accounts to bring the opening figures into line with the signed accounts.
Just to clarify further, if the external accountants are providing the journals for accruals, prepayments and depreciation- would you enter these after the year end is closed on sage or would that not matter as these need to be reversed in the new year anyways? Not sure how this process works on sage please. Thanks
If accountant makes any adjustments to SAGE figures these can be entered as opening balance adjustments any time (either after you have closed down the year or before)
As I said above I would close down and balance forward within a couple of weeks of your year end so you can post correctly into your new year and run relevant management info.
The accountant can either give you the adjustments or come out and post themselves to bring the SAGE figures into line with the signed accounts.
