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Bookkeeping All-in-One For Dummies, 2nd Edition
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Bookkeeping All-in-One For Dummies, 2nd Edition

by Lita Epstein, John A. Tracy
August 2019
Intermediate to advanced content levelIntermediate to advanced
608 pages
15h 28m
English
For Dummies
Content preview from Bookkeeping All-in-One For Dummies, 2nd Edition

Chapter 5

Prepping the Books for a New Accounting Cycle

IN THIS CHAPTER

Bullet Wrapping up General Ledger accounts

Bullet Looking back through customer accounts

Bullet Checking for unpaid vendor bills

Bullet Clearing out unnecessary accounts

Bullet Transitioning into a new accounting cycle

In bookkeeping, an accounting period or cycle can be one month, a quarter, a year, or any other division of time that makes business sense. At the end of every accounting period, certain accounts need to be closed, and others remain open.

Just as adding accounts to your bookkeeping system at the beginning of a year is best (so that you don’t have to move information from one account to another), waiting until the end of the year to delete any accounts you no longer need is also a smart idea. With this approach, you start each year fresh, with only the accounts you need to best manage your business’s financial activities.

This chapter explains the accounts that must be closed and restarted with a zero balance in the next accounting ...

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Publisher Resources

ISBN: 9781119592907Purchase book