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Financial year end

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Summary

How to process your financial year end in Sage Accounting.

Description

In Sage Accounting, you aren't required to post a Year End Journal like with Sage 50 Accounts. The previous year's Profit and Loss is automatically included in the ledger when you run the Trial Balance. The balances are brought-forward.

Resolution

Enter all your transactions

Make sure you enter all your transactions up to the last day of your financial year.

Complete any usual month-end procedures such as posting prepayments and accruals or depreciation.


Produce your year-end reports

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

  • Profit and Loss report - Shows the value for sales, direct expenses including cost of sales, and overheads for the financial year. It also shows the resulting gross and net profit or loss. Sage Accounting does not move your profit and loss figures into a reserve account. Instead it generates the totals on the report based on the opening and closing balances
  • Balance Sheet report - Details your company‚Äôs assets, liabilities, and equity
  • Trial Balance - Run this report for the This Financial Year period. This also shows the balance on each account and includes values from before the first day as follows:
     TIP: If you want to include profit and loss figures, select the checkbox next to Summarise profit and loss values. 

Change your financial year end date

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

 NOTE: Don't change the Accounts Start Date. This is the date you started using Accounting and not related 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. Select Save at the bottom of the page.

Enter a lockdown date

To prevent transactions being entered accidentally for the previous year, you can enter a lockdown date.

  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 box.
  4. Select Save at the bottom of the page.

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