Closing a fiscal year is an important process in BusinessBasics. During this process, a number of tasks are performed to officially close the year that's just ended and to prepare for the new year. Fortunately, BusinessBasics takes care of nearly all these processes automatically. In MYOB BusinessBasics, you use the Start a New Fiscal Year feature to close your fiscal year and start a new one.
To learn the current fiscal year of your BusinessBasics company file, choose Company Information from the Setup menu. This window also displays the last Month in Fiscal Year, the number of Accounting Periods per year and the Conversion Month. (The Conversion Month is the first month you started making entries in BusinessBasics.)
Note: When your fiscal year should be closed
When you've entered all the information that's required for a fiscal year, you're ready to close the year and start a new fiscal year.
To the best of your ability, be sure that all transactions for the year that's ending are entered in MYOB BusinessBasics before you begin closing the year. That way, you can avoid making adjusting General Journal entries in the new year, and your yearly records will be more accurate. This will make it easier for you to compare your company's performance from one year to the next. If you have an accountant who produces your year-end financial reports, you may need to wait for your accountant to provide you with any adjusting entries that may be needed.
Finally, perform the tasks you usually do at the end of a month. (Performing month-end tasks.)
To learn what changes are made to your company file during the Start a New Year process, see "How the company file changes when you Start a New Fiscal Year".
Warning: Make a backup before closing the fiscal year!
It's wise to keep multiple backup copies of your company file at different locations. The reason for this is simple: backups can fail too! If a backup file is damaged, you're in just as much trouble as you would be without any backup at all.
Idea: Make a reference copy of your company file before closing the year
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