The situation described in your last post, @norfolkislandam, is actually quite simple. (I am not giving opinions or ideas about anything previously discussed.)
In effect, you are making a transition to Manager from another business. So begin a completely new set of accounts with a Start Date of July 1, 2016. Set up your chart of accounts, and as you do so, enter any carryover balances for any of your balance sheet accounts, such as fixed assets and cash accounts. Ignore income and expense accounts for the purpose of starting balances.
The only balance sheet accounts you do not follow this procedure for are
Accounts receivable and
Accounts payable. For those two, you must enter any sales or purchase invoices that have not been completely paid. Enter the balance remaining due and the actual issue dates, which will predate your Start Date. Manager picks up pre-Start Date invoices as the only things that are not ignored that occurred prior to the Start Date. It does not recognize them as income expenses, though, because their revenue or expense would have been recognized prior to the new business’ beginning. This procedure categorizes them as assets (A/R) or liabilities (A/P). When you enter receipts or payments against those invoices, all you will be doing is transferring money in or out of a cash account to clear A/R or A/P. Nothing will appear on your P&L as income or expense.
In the case of taxes that were on those pre-Start Date sales invoices, the sum of these will be entered as the opening balance of your
Tax payable account. When you remit the tax to the government, you will just be clearing that liability. Again, it was actually traceable to the period before your “new” company started operation.
In the case of cash transactions involving taxes after your new Start Date that are for your old cash-accounting period, you may need journal transactions to rectify things. In my experience, there may be some elaborate filings to make as a result of switching from cash to accrual accounting. These typically involve adjustments to be sure the tax authority gets its due, no matter what. This is what should be discussed with your accountant. You may, in fact, need explicit permission from your tax authority to make such a change. The Manager part is relatively easy.