Period-end tasks
How the company file changes when you Start a New Fiscal Year
When you start a new fiscal year, your company file will be changed in the following ways:
- All transactions are erased (purged), EXCEPT:
- Journal entries assigned to open invoices or sales or purchase orders.
- Journal entries assigned to paychecks for the current payroll year.
- Journal entries assigned to reimbursable expenses that haven't been reimbursed.
- Unreconciled transactions in accounts that you reconcile. (You indicate these accounts during the Start a New Fiscal Year process.)
- Any information dated in the new fiscal year.
- Unprocessed electronic payments and undeposited funds transactions. (You indicate that you wish to exclude these transactions in Window # 4 of the Start a New Fiscal Year process.)
- All Audit Trail entries are purged, unless you unmark the Purge Audit Trail Entries selection in Window # 4 of the Start a New Fiscal Year process. (Changes and entries recorded by Audit Trail Tracking)
- The previous fiscal year's monthly totals for all accounts are changed to "last year" categories. If "last year" amounts already existed, those amounts are replaced.
- The balance of your current-year earnings account is transferred to your retained earnings account.
- The balances of your income, cost of sales, expense, other income and other expense accounts are reset to zero.
- If you wish, the new fiscal year can be changed so it ends in a different month than the previous fiscal year. (If you choose to make this change, check with an accountant about how to report information for a "short" fiscal year.)
- If you wish, the new fiscal year can be changed to include 13 accounting periods. If your previous fiscal year used 13 periods but you didn't make any entries in the 13th period, you can change your new fiscal year to include only 12 accounting periods.
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