How do I close off a year end?

Accounting
1

As a new user I need now to close off the accounts for the tax year 5 April 2020. Not sure how to do this. I need to start inputting new invoices for the tax year 20/21. Can anyone please help by advising what to do. Thanks

2

You don’t have to close off one year before you start issuing invoices for the next, you can carry on as normal and just run the year end process later when you’re ready to do your tax return. The journals created as part of the year end are backdated to the right end of year date whenever you actually create them.

3

Thanks Ian. Could I ask you another question please. When I do a year end what does it actually give me. Can this option be done within quickfile or is it something that an accountant would do.Sorry to be so vague about this but I am new to this online accounting ssytem
Thanks

4

All the “year end process” does in QuickFile is

  • create a journal to zero out all your profit and loss codes and transfer the balance to “retained profit” under the capital section of your balance sheet, and
  • set the lock date to prevent you from accidentally adding any more back dated entries that would affect the values you’ve used for your tax return or official company accounts

Personally, what I do is take the raw P&L and balance sheet from QuickFile and give them to my accountant to calculate adjustments for things like asset depreciation, accruals (expenses that belong in the previous year but were only invoiced this year, like his own fees) and prepayments (things invoiced last year but pertaining to this one, like advance rent or insurance premiums). I then make journals in QuickFile to match his figures, and only then run the actual year end.

It’s worth taking at least initial advice from an accountant - if your business is simple enough it might be that you can do it all yourself once you know the details but often they can save you more than you’re paying them in terms of knowing all the extra things you can claim for that you might not have thought of, and avoiding mistakes now that might be costly later on.

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5

Thanks Ian. I always use an accountant so I will ask him if he can use quickfile and he can do the necessary. Thanks for your help

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