Basically, Ive tried a few things online only to find they were vastly limited or “trial” type programs.
I had a play about with this and realised it was better than I had thought.
However, now Ive completed the year end… Ive realised this was a mistake and with a few simple tweaks I could have a proper set of accounts.
My question … How to?
Delete all journals related to year end and remove Account Lock date if any
Thank you.
I didnt want to do anything drastic without checking
My improved understanding of the year end and final accounts requirements of a sole trader make me tempted to ‘have a go’ with the year-end close process offered within QF when my first fnancial year comes to an end on 31/3/14. I know QF effectively keeps a trial balance, viewable at any one time through Reports-> chart of accounts -> hide accs with no activity. I also keep the same on a detailed spreadsheet. Each account (wages, rent, advertising etc) that has had transactions going through it in the year must be emptied out and transferred to the trading and profit and loss account. This can be done by a series of year-end journal postings (manually) but can QF do this automatically? If so, are you given the option to accept/confirm the balances in the journals before they are ‘cemented’ in? It would seem they can be changed or deleted at a later point?
Finally, what’s the account lock?
That is required if one is running manual book keeping, text books are based on T accounts, hence need moving data to P&L a/c from subsidiary ledgers. Software handles all process in real time, no need to do manual journals for it, year end journals are typical like depreciation, prepayments, accruals, taxation, deferred tax, revaluation reserves etc.
Account lock date is typically year end date when all closing journals done so that things cannot be modified and backdated
ok, so if I were to look at a P&L expenses account, eg advertising (6201), would my year-end journal be:
Dr P&L (3200)
Cr advertising (6201)?
I run a service business so have no trading element to my accounts. Not sure what my year-end journal would need to be for sales.
Dr Sales account (4000)
Cr ?? (where would I post to?)
no need of any such journals at all
I want to do it all manually though, based on T accounts, so i must post journals…
You should not do this on any software
well how do I do it then??
As you said in an earlier post, do i let the system do it in real time and check the journals then? Just going back to my question, how will it handle sales in terms of double entry. It must Dr sales but what about the Cr leg?
Softwares handle things differently for reporting purpose, if you record sale in first place it uses subsidiary ledgers of individual customer and relevant nominal accounts to do entry automatically
Dr Customer
Cr Sales account
At same time for reporting purpose it would update Sales control a/c & P&L account (not part of double entry)
So you dont need to do journals to move nominal balances to P&l, Data automatically reported at backed
What do you mean when you say ‘data automatically reported at backed?’
sorry missed n here it should be back end or in back ground
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