> This was
> why accountants introduced an artificial 13th month into the financial year
> so that all closing transactions were forced to occur fater any other
> transaction that occurred within the year. Any required adjustments to the
> accounts are also usually carried out before the closing transactions for
> the same reason.
Or increased the number of days in December past 31 or otherwise
provided for dates that were not fiscal dates for external transactions
<< that's what where I spent my working days did >> However that sort
of thing not so easy these days when using software that checks the
validity of dates and doesn't know about "special dates" . When it is
your own "date validity checker" written in house, more practical.
HOWEVER --- there ARE ways around this difficulty for those of us using
gnucash, WORK FLOW solutions. After the last external transaction, copy
the file to a name like "last external". Then do the internal
transactions that DO affect income expenses (like recording
depreciation) and again make a copy. Now you can do the "close"
transaction(s) and make a copy "post close". IF there are "adjustment"
transactions to be entered, do them and again make a copy you name for
the next year or simply copy "post close" to that.
On 12/28/18 6:08 AM, Jennym wrote:
> Thanks Stephen,
> Not sure what 'the GnC method' but thanks for your suggestions. Think I now
> have my head around my 'problem'.
GnC method lets you ignore the close accounts step as it knows about the
accounting period (you did set that up) and that Income and Expense
accounts start over automatically -- even if you have prior year's
transactions in them.
The only advantage I see to running the close books transaction is that
it books the retained earnings to the account(s) you want rather than
just showing it as an accumulated retained earnings on the Balance Sheet
The downside is if you ever have to make adjustments to prior year's
activity you will need to either adjust the two close books transactions
or delete them and re-close that year. I did that for my business.
Think I'll not do that for my personal finances.