The financial accounts for each HandiLedger client will need to be closed and rolled into the next financial year. This process is performed for each client individually. When an accounting year is closed, HandiLedger automatically records closing journal entries.
Note: If you need to do the next year's accounts without closing the previous year, select the entity, click Year, New, specify the year then Save.
Close a year
Select the client and the year you want to close.
Go to Entity, Close Years Accounts.
Select the closing options (see below), then OK.
Closing year options
When closing a client's accounting year, the following operations must be performed in the order shown below:
Reverse income and expenses
Add closing entries
Rollover into next year
The Close Year Accounts window provides access to the three operations, which may be selected individually or together. Where all are selected, HandiLedger will perform the operations in that order.
Reverse income & expenses
This is the first step when closing a client's accounting year:
Verifies all the transactions in the database.
Recalculates all the account balances for the selected client.
Reverses revenue and expenditure accounts.
Advises the amount credited or debited to retained profits.
Add closing entries
This allows HandiLedger to prepare closing journal entries for your client. You can alter these journal entries, however, they are unlikely to require changing.
HandiLedger can only perform the Add closing entries operation after the Reverse income and expenses operation is complete.
Roll over into next year
HandiLedger can perform this operation only after both the Reverse income and expenditure and the Add closing entries routines are complete. HandiLedger will do the following:
Where the selected client has depreciation schedules, HandiLedger will ask if you wish to roll over these schedules. If you choose Yes, HandiLedger will do the following:
Calculate CWDV for the current year and inputs an OWDV for the next year.
Posts all depreciation journal entries to next year’s accounts if the Auto Journal Depreciation option is selected in View, Entity Details, Edit.
Delete any existing opening balance entries from next year.
Roll over this year's closing balances to next year’s opening balance entries.
Copy the owner details (View, Members, Partners, Beneficiaries or Directors) to the next year.
Copy livestock closing stock numbers to next year opening stock numbers.
Transfer opening stock for Manufacturing, Trading and Livestock by making entries for next year.
Change the selected accounting year to the next year.
Verify transactions.
Allow you to create the budget figures from either actual figures or budget figures from the prior year.