Clear your financial year balances
Description

The tax year runs from 1 January to 31 December, however your company's financial year may not align with these dates. For example, it runs 1 August to 31 July.

You can set your company's financial year to coincide with the tax year. Or if it doesn't, you can specify which periods your financial year covers.

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Resolution

Set your Financial Year

When setting up your calendar for the new tax year, specify whether your financial year covers the same 12 months or is different.

If your financial year runs from January to December, select the Financial Year is the same as Tax Year ( January - December) check box.

If your financial year is different to the Tax Year, enter the correct period in the Financial Year will end after period section.


How the financial year clear down works

Clearing financial year balances removes cost analysis figures and payment balances from the previous year that you don’t want to carry forward.

Use the article to find out What happens when you clear financial year end balances.

NOTE: The system doesn’t automatically clear reducing balances, so you must carry them over into the new year until you fully reduce them.


Clear your financial year balances

When you set the period as the first one after your financial year ends, the system prompts you to clear your financial year balances.

To clear the balances, select the Clear down Financial Year balances option and click Continue Set Period. The clear down process then runs and you receive this message once it has finished:

Or, if you want clear the balances manually later, select the Do not clear down the Financial Year balances now option.


When do I not clear down?

You may need to avoid clearing your financial year balances at the end of the tax year in situations such as:

  • If you already manually cleared down the balances in this period
  • If you want to choose specific payments and deductions to clear and don't want to clear the balances of others. For example, pensions
  • If you want to change your financial year start/end period as the current period isn't the start of your new financial year


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