Entering year-end adjusting entries

If you’re already entering daily transactions in the new fiscal year (for example, 2018), you can still go back to the previous year to make any required adjusting entries you receive from your accountant.

To enter year-end adjusting entries:

1. Select Fiscal Years from the Setup menu.
2. Change the Current fiscal year to your previous year (for example, 2017).
3. Select General Journal from the Transactions menu. Enter all the adjusting entries provided by your accountant using the last day of your fiscal year.
   • If an adjusting entry involves a bank account, use the Transaction Entry dialogue box.
4. Print a Trial Balance report for the end of the previous fiscal year.
   • Select Report Console from the Reports menu, and then select Financial and Trial Balance.
   • Change the Date to the last day of your fiscal year (for example, December 31, 2017).
   • Print the report.
   • Compare this printed Trial Balance to the accountant's Trial Balance to ensure account totals match.
5. Print a Trial Balance report for the beginning of the new fiscal year.
   • Select Fiscal Year from the Setup menu.
   • Change the Current fiscal year to your current fiscal year (for example, 2018).
   • Select Report Console from the Reports menu, and then select Financial and Trial Balance.
   • Change the Date to the first day of your fiscal year (for example, January 1, 2018).
   • Print the report.
6. Compare the values on the two Trial Balance reports.
   • The asset and liabilities and equity account balances should be the same, except for the retained earnings value.
   • The retained earnings value from your previous year will be equal to the current year’s retained earnings plus the sum of all income values less the sum of all expense values.

 

Last updated on June 6, 2018 by FCC AgExpert