Starting a New Financial Year
In This Chapter
Finishing the old year in style
Parcelling up a whole year’s information in one neat bundle
Playing spot the difference
Communing with the company accountant
Starting a new year with pomp and ceremony
The end of one financial year and the beginning of another is a big deal for bookkeepers. Not only do you have to get a whole year’s books in order, ready for the company accountant to do their stuff, but you also need to make sure that all the opening balances are shipshape for the year ahead.
In this chapter, I talk about what’s required to get the old year’s accounts in order, including important details such as whether you can record transactions in the new year before the old has been finished, and what you need to get ready at the end of each financial year. I also dwell on that most delicate of relationships — the one between a bookkeeper and an accountant — and provide a few tips for a long and happy marriage.
Finally, I describe what happens at the end of the accounting cycle, when the accountant has done their stuff and produced a pile of scary-looking tax returns. I delve into the topic of final year-end adjustments (exciting stuff indeed) and how to close one year for good before bringing in the new.
Throughout this chapter I recommend backing up your files before starting a new financial year. Why? Because with ...