Closing temporary accounts

1

I would like others’ thoughts about closing entries. (I haven’t been using Manager long enough to make any yet.) I can easily close the income and expense accounts to capital at year end via journal entries, but it seems that if I date the closing entries for the last day of the accounting year, the reports such as Profit & Loss for that year won’t show those account totals. If I date the closing entries for the first day of the following year, reports for that year would be off. And if I forego the closing entries entirely, the various years’ reports would be correct as long as I set beginning and ending dates correctly. But then the Summary will show those temporary accounts with running total balances from inception of the company rather than year to date. What am I missing?

Thanks.

2

Maybe I’ve answered my own question. I discovered the ability to customize start date for the summary. So I think there is no reason to make closing entries at all. Date ranges for reports can be set without worrying that closing entries change temporary accounts. And the summary start date can be changed every year. Do I understand that correctly?

3

Exactly, there is no need for “closing entries” in Manager. You can get reports for any date range.

Summary start date is usually changed at the beginning of new financial year so you don’t see accumulating income and expenses forever.