Just wondering if I still need to post closing journal entries in respective income/expense accounts against Retained Earning before 2016 accounting cycle ?
I mean how to get Manager 15.6.94 version ready for taking in fresh entries for 2016 ?
One of Manager’s best features is that it eliminates the need for account closing. Simply set a new period on the Summary page. Income and expense accounts will now show as zero. Balance sheet accounts (the permanent accounts) will maintain their balances.
You should create new reports for the new accounting period with appropriate dates.
It can be good practice to clear expense claims before year-end, either to equity or by actually paying employees. This produces a cleaner, simpler view of the company’s financial position, but is not technically necessary.
Exactly how you handle retained earnings will depend on your form of organization. If you are a sole proprietor/trader, retained earnings belong to you. You could simply rename the Retained earnings account as Owner's equity. If you are using capital accounts, things are a little more complex.
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