Best Practises - New fiscal year

1

Dear all,

I was wondering, what is the best way to administer/bookkeeping taking into account that every year is a fresh fiscal year?

As I see it, I’ve got two options:

  1. Start Manager.io and use the build-in features to secure/close your fiscal year (Guide: Close an accounting period | Manager and Set lock date | Manager).
  2. Every year start a new fiscal year.

For option #1 I’d assume everything is and stays in one place; very convenient. By making use of the closing/locking features everything is secured. Also less ‘Journal Entries’ to close and open the current and upcoming year. Though, be making use of adding all invoices (and the like) as attachments, the file/database is growing substantial. Of course I can ‘shrink’ the database (clicking the size (KB/MB) on your business) but what size is acceptable? This in regards to performance of the application.

For option #2 I’d assume, everything is registered by each individual fiscal year. So also the corresponding attachments are only available in that database and will be in total heavily reduced compared to the size in option #1. However the mentioned features in option #1 are then completely unnecessary as you need to add more manual ‘Journal Entries’ for each fiscal year.

So which is advised by the developers of Manager.io? Can you elaborate on one another? What would be the maximum size of the database before I might encounter performance issues?

Cheers,
Canefield

2

The first one without discussion. When you approve the numbers make a backup of the business and save also Manager version under which you closed everything.

3

Thanks @Davide for your quick reply. However I’m also interested in the ‘Why’ / rationale.
Good point to backup prior closing with versioning (application).

4

Because the software is a perpetual accounting software. It is designed to work only in this way. You will spend lot of days opening a new business with all the currect numbers since there is not such an automation. You will have to do this by hand with the risk of many errors.

BTW I suggest to make a backup also of Manager version since it happened a few times that the software changed the design of some algorithm that end up with different numbers. Fortunately it didn’t affect mine.

5

I will make two points, @canefield:

  1. Attachments are completely optional. There is no requirement to include them in Manager. All documentation and verification can be separately filed, either on paper or electronically.

  2. The number of attachments will not affect performance of the application.