Ending a financial year and starting a new one

DiverseDiverse Member Posts: 1

Hi there,
How does one end your financial year and start the new financial year. In my case my financial year ended 28 Feb and the new one started 1st March. Does wave close the books?

Comments

  • AndréKochAndréKoch Member Posts: 9

    I believe you can find this in settings under date & currency. cheers!

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Hi @Diverse.

    The good news is that to close out your year in Wave, you don't have to do anything at all! Other than set the date of your year's end appropriately like @AndréKoch mentioned.

    Other accounting platforms don't allow you to touch historical data, but in Wave, you can pull up reports and make adjustments at any time. This means that your previous years never really "close". All that happens at year-end is that current year earnings get zeroed and added to previous year earnings.

    At the start of your new fiscal year, you will see your new previous year earnings balance, fresh income and expense account balances, and your usual bank account balances.

    Let me know if you have any questions, I'd be happy to help.

  • LeoLiuLeoLiu Member Posts: 6

    Hi Alexia, may i know if Wave has function lock previous month preventing someone accident change month end balance? Can you advise please?
    Thanks
    Leo

  • James_HudsonJames_Hudson Administrator Posts: 92 admin

    Hi @LeoLiu , Wave doesn't have a specific function that locks the balances of specific periods, but if you're concerned about your numbers changing, I'd recommend regularly exporting reports from the "Reports" page. The Trial Balance Report or Balance Sheet should be your best bet!

  • LeoLiuLeoLiu Member Posts: 6

    Hi Thank you, I did exactly that way keep a hard copy.

  • LizellLizell Member Posts: 1

    Good morning...my company started in May and the accounts were done by the parenting company in Sage Evolution. I want to start January 2019 fresh in Wave (I am a brand new user). What do I require from them to get my opening balances correct? For example there will be invoices due from December which will be paid in 2019. Thank you!

  • Katie_SilkinaKatie_Silkina Guest, Unconfirmed, Applicant, Member, Administrator, Moderator, Employers Posts: 73 admin

    hey @Lizell check out our guide here for some tips on starting fresh from another accounting software.

  • stevensteven Member Posts: 1

    It is pretty clear that reports can be generated over any time period you want. What is interesting is that, in wave, accounts seem to accrue forever if you don't do some pretty extensive general ledger transactions on each account.

    For example, my main income account has a "beginning balance" that never resets to zero. Since I have many, many income and expense accounts, they all have various start/end balances that reflect the entire history of the business.

    If I wanted all of these accounts to have a start balance of zero at the beginning of the period, I'd create a summary income and summary expense account, do a bunch of general ledger transactions dated to the end of the period for each account to transfer the balances into the summary account, and then either leave the summary balance accounts alone to accrue over all time, or transfer the balances into retained earnings and zero the summary accounts as well. This is a lot of manual work. I'm concluding that for wave users, a true "closing" must be a remnant of a bygone era of accounting and I should forget about it.

  • GeneCGeneC Member Posts: 1

    re: Closing a year. The Oct 24 response to LeoLui demonstrates a lack of practical hands-on knowledge by Wave. LeoLui raises an important point. People make mistakes which become a big headache for their accountants. People enter the wrong year, for example, for 2 weeks every January! I strongly suggest that Wave should look at what Quickbooks does, where you can also "always adjust" historical information but you can set a "closing date" that will at least give you a pop-up warning you of the consequences of adjusting in a year that was completed. And if clients adjust prior years in error any way, those error are easy to find in QB by filtering by "date modified."

    edited February 16, 2019
  • alexlewiszarkosalexlewiszarkos Administrator Posts: 65 admin

    Hi @steven @GeneC , I think GeneC's feedback on the option to have a closing date is a fair request and something that can definitely be discussed here. Thanks for this valid input.

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