End of the Year closure and New Year


The most complete and up-to-date documentation is the one of Banana Accounting Plus: Try it now

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Avoid mistakes with Banana Accounting Plus

In order to have continuity and serenity of work, it is also worth starting the New Year with an updated software.
Facilitate checking your accounting work and immediately find differences: in Banana Accounting Plus, our new version, try the Balance column in the Transaction table. You can now see potential differences on each row and you can correct them right away. It is a very useful feature when closing the accounting period.
Many of our clients have already tried it and are enthusiastic about it. We advise you to switch now to Banana Accounting Plus and take advantage of the many new features.
Other resources: How to close and open the accounting year

Create a New Year

At the end of every accounting year, before printing and filing the Balance Sheet and the Profit & Loss Statement, it is necessary to recheck the accounting file.
Please visit the Recheck the accounting page.

At the end of the accounting year, the program gives the possibility to automatically pass on the new year, even without having allocated the profit or loss of the year that just ended.
Once the new year has been created and the file has been saved under a new name, the user can work in the file of the new year, but also in the one of the preceding year.

If there are modifications in the preceding year, use the Update Opening balances command of the Account2 menu in order to update the opening balances of the new year. 

Performed Operations

With this feature, the program:

  • Creates a new file (with no name) with the accounting plan and all the settings identical to your current file, but without transactions.
  • Copies the data from the Balance column of your current file to the Opening column of the new file (only for the selected classes)
  • Adds the selected amount to the opening balance of the Profit or Loss from previous year account(s) in the new file.
  • Copies the data from the Balance column of your current file to the Previous Year column of the new file (for all the accounts).
  • Updates the opening and closing dates in the File and accounting Properties of the new file.

Create New Year command

  • Open the current file and click on the Create New Year command from the Account2 menu: a window, that shows a difference corresponding to the profit or loss that has not yet been allocated, will appear. There may also be differences due to accounting errors.
  • From the list that appears, the user can select the account to which the result of the accounting period has to be allocated, or one can directly confirm with OK if the allocation of the result has to be postponed.

Carry forward account opening balances
The opening balances of the selected options are carried forward.
Indicate which accounts are required to have opening balances carried forward. Usually the Profit and Loss Statements balances  are not carried forward. For specific needs you can always activate the option.

Allocation profit/loss

Total to allocate
The program will indicate the profit/loss that needs to be shared between various accounts.

If only one account is selected, the amount will automatically entered. Select the account or accounts (up to three) in which the result of the accounting period has to be allocated. In case there are several destination accounts for the result of the accounting period, the amounts should be inserted manually in the different boxes. The program will automatically update the opening balances. The Total Assets will exactly match the Total Liabilities.

Allocation of the result of the accounting period on more than three accounts.

In this case, allocate the result of the accounting period automatically on the Profit or loss brought forward account as usual, and continue to proceed with the creation of the new year.

In the new year (new file), Transactions table, proceed with a composed transaction in order to allocate the result of the accounting period from the Profit or loss brought forward account to the different destination accounts.

  • Confirm the File and accounting properties for the new year.

  • From the File menu, activate the Save as... command, indicating the folder where the new accounting file needs to be saved.

Updating opening balances command

The updating process performs the same operation of transferring the balances as the Create New Year command.

  • You need to specify the file from which the balances need to be transferred
  • The balances are being carried forward to the open file

Opening balances must be uptated in the following situations:

  • When you made corrections in the previous year to correct differences
  • When you made changes in the previous year transactions
  • When the profit/loss of the previous year has not been allocated

Here is how to proceed to make the update:

  • Open the current year accounting file and choose the Update opening balances command from the Account2 menu

  • Select the previous year accounting file through the Browse button
  • Follow the same steps as the ones of the Create New Year command (see top of the page)