Year end closure

Hi there,

How do we close income and expense to profit/loss? manual or automatically?
Thanks

For the Summary tab you don’t actual close the income and expense, you just change the Set Period details.

Thanks Brucanna,

but Profit/Loss for the year need to be clear to owners equity opening account?

Are incomes and expenses accounts need close to PROFIT/LOSS BROUGHT FORWARD?

I understand to set up time period. I am now setting period from 01/07/2016 to current month and move on to new month. If we are in new financial year, do you mean I just need change period from 01/07/2017 to …

Thanks in advance for your advice.

Kind Regards

Jane

There is a Guide answering your questions: https://www.manager.io/guides/best-practices/accounting-periods.

Specifically, nothing will be cleared to any “opening account,” whatever you mean by that. And there are no accounts for bringing profit/loss forward.

The simplicity of entering a new accounting period is one of Manager’s nicest features.

Thanks

Yes and the prior year P&L will be zeroed and transferred to Retained Earnings
Manager gives you the flexibly to switch reporting dates back & forth between years without needing to do an actual year end close - it just happens in the background.

This is perhaps slightly misleading, because nothing is actually transferred. Nor is the prior year P&L actually zeroed. Instead, the parameters of what is reported are changed. All transactions remain as they were originally posted, but the report reflects accounting status and action as of the date range specified. That’s where the flexibility for switching periods comes from.

Thanks Guys.

Kind Regards

Jane