Creating a new account for next academic year

Dear all, kindly I really need an advice concerning this issue.

I am running a school. I have started using Manager for the first academic year. Now some of the parents have started paying for the next academic year while I am still receiving payments for this current academic year. Pls what’s the best practice to tackle this issue?

Note: I cannot lock the current account before I am still receiving payments. Likewise, I don’t want to mix next year’s payments​ with this year. I like to separate them so that I can easily know what amount of profit I make each year.

Your kind response will be appreciated.

Read this Guide: Profit and loss for different years is handled by creating reports for different periods. Read this Guide:

If you are receiving payments which should be accounted as income at future date, then create liability account called Prepayments. When parents pay for the next year, categorize their payments to liability Prepayments account rather than some income account. This will make sure prepayments don’t increase your profit.

When new financial year starts, you will make single journal entry to transfer all prepayments to income.

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Did you or will you issue invoices for those next academic year fees, if yes, date those invoices as required. For the payments do a Receive Money and post to the customer account, the customer account will show a credit balance until the invoice date arrives, then the invoice will show that payment against it.

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Thanks all. I really appreciate your quick and helpful responses.