HandiLedger requires the accounting year of a single client to cover the same reporting period to facilitate correct rollover and reporting procedures. Where your client needs to change financial year ends, you will need to follow the steps below.
Changing the financial year end for existing entities
The process to change financial year ends is best demonstrated with a typical entity that has a July-to-June financial reporting period and wants to change to January to December.
Log in to HandiLedger and select your entity.
Complete the accounts to the end of June.
Go to Entity, Add a New Entity.
Enter the entity name and the financial year from July to December. The reason for this is to allow the first entity to report figures for full year periods and this transitional entity for the six-month transition period only.
Complete the accounts to the end of December.
Go to Entity, Add a New Entity.
Enter the entity name and financial year for January to December. This will be the entity that you will continue to use in future years.
Notes:
In steps one and two, you will need to close off each year and enter the balances for the new entities through comparative entries.
The exercise will result in three entities created from one.
An example below to illustrate the logic:
Entity ABC0001 (ABC Pty Ltd) that contains figures for July 20nn to June 20nn+1, and July to June for all prior years.
Entity ABC0002 (ABC Pty Ltd) that will have data for July 20nn+1 to December 20nn+1 ( reports will need to be run for the full year; however, you will be aware that it is only a transitional entity as it will only contain 6 months of data).
Entity ABC0003 (ABC Pty Ltd) that will have data for January 20nn+2 to December 20nn+2, and all future years.
Tip: If you want to keep ABC0001 as the new entity in line with data in other HandiSoft programs, duplicate the entity before proceeding and then delete the entity ABC0001 from HandiLedger only. In the example above, create ABC0003 as ABC0001 instead, and ABC0001 will then be the number you duplicated the entity to.