Forum Message

Part Year Accounts

We have taken on a client part way through the year, the clients accountant has input 2 months worth of information and we are entering the rest.

Invoices dated for the 2 months the accountant put in, do we put them to retained earnings? We have no opening balances yet from the accountants.

Solar accounts seems to work in whole years only, what start date should we enter. The official start date or when we took over?


Posted by Chris Harding on Mar 5, 2013 8:10 PM GMT

Hi Chris,

It's fine to start using Solar Accounts part-way through the financial year. In Solar Accounts enter the official financial year start date, not the date you took over. Enter any invoices and purchase invoices that were outstanding at the date you took over, but there's no need to enter any other transactions in the first two months.

To set the opening balances, ask the accountants for their Trial Balance report dated the day before you took over, and print the same Trial Balance report from Solar Accounts. For each account where the balance does not match, adjust the Opening Balance in Solar Accounts by the amount of the difference - this should result in your Trial Balance matching the accountant's report.

To produce the Profit and Loss for the full year, ask the accountants for the P&L report for the first two months and use Solar Accounts to produce the P&L for the remaining 10 months, then add the figures together.

Regards,


Posted by Mark McLaren (Solar Accounts) on Mar 6, 2013 8:56 AM GMT