Getting Ready for the New Year
Your business doesn’t stop operating just because you are doing the year-end close. As you work through the numbers, you’ll find you are working with both the prior year accounts and the current year accounts.
Your software package should allow you to start a new year of P&L accounts with zero balances, before you actually zero out the prior year accounts in a computerized system. If this flexibility is crucial to you, you might want to verify that feature in a software package before you buy it. If you are using a manual system, you can either leave space on a journal page to make room for any additional entries or just start a new page for the more active accounts.
You also need to start new files for all the ...