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Using TurboCASH

 







YEAR-END
CLOSING TRANSACTIONS
  
When you do the year-end in the Tools - Global Processes - Do Year-End menu option, TurboCASH automatically close off all the accounts and transfer all the -
  1. General Ledger Accounts created as an Income / Expense Account (Income Statement Accounts) in the Edit - Accounts - General Ledger menu option to the Retained Earnings Account at the end or last day of the accounting period for the current financial year (This Year). You will still be able to view these figures as comparative figures in the new financial year on the Trial Balance and Income Statement.

  2. General Ledger Accounts created as a Balance Sheet Account (Assets, Liabilities, Capital) will be closed off and the opening balances will be transferred to the new financial year.

  3. Debtor Accounts in the Debtors Ledger (created in the Edit - Accounts - Debtor) and Creditor Accounts in the Creditors Ledger (created in the Edit - Accounts - Creditor) menu option will be closed off and the opening balances will be transferred to the new financial year.
An example of the trial balance after the year-end closing transactions is as follows:

 

Name of the business. System date and time. Page number. Name of the report. Range of the selected Accounting periods. The debit and credit balances for the accounts as updated with transactions posted in This Year. The debit and credit balances for the accounts as updated with Budget figures as entered or edited in the Edit - Budgets menu option. The debit and credit balances for the accounts as updated with transactions posted in Last Year. List of the Account numbers and the Account descriptions or names.
Budget Net Profit/(Loss) - Budget figures for income and expense accounts as entered or edited in the Edit - Budget menu option. Last Year Net Profit/(Loss) - The actual transaction totals (Income less Expense Accounts) posted to selected Accounting Periods for Last Year. This Year Net Profit/(Loss) - The actual transaction totals (Income less Expense Accounts) posted to selected Accounting Periods for This Year. The debit and credit balances for the accounts as updated with transactions posted in This Year. The debit and credit balances for the accounts as updated with Budget figures as entered or edited in the Edit - Budgets menu option. The debit and credit balances for the accounts as updated with transactions posted in Last Year. List of the Account numbers and the Account descriptions or names.

The Income / Expense Account transactions are reflected as nil or zero balances for the new financial year (e.g. 1 March 2005 to 28 February 2006). The previous year (Last Year) figures for each of these accounts will still be available as comparative figures for the (e.g. 1 March 2004 o 28 February 2005).

The Retained Earnings Account is increased in the new financial year with the net profit of the previous year. If it were a net loss (where the Expenses exceed the Income) the net loss would decrease the Retained Earnings Account.

If you have not yet completed your final transactions (corrections and adjustments, etc.) you may still post transactions to the previous financial year. TurboCASH will display the following confirmation message if you enter or post transactions, which contains dates for Last Year:



You need to make absolutely sure that the dates for these transactions are correct, since these transactions will definitely update the transactions to the previous financial year. If you are sure, you may click on the button. The transactions will be posted to the previous financial year and your account balances will change.

If you click on the button, you may edit the batch and change the dates to the new financial year (This Year).


Once your Financial Statements are finalised, you may to restrict posting to the previous financial year. You may do this by clicking on the Setup - System Parameters - Reporting Dates menu option and remove the tick in the "Post to last year" field. Although you will not be able to post transactions to that financial year, you may still generate reports. You may at any time select this field again should you need to post to the previous financial year.