Hi,

I recently purchased Solar Accounts and am currently transferring my accounts to it.

I am in Ireland, my financial year starts on 1 June xxxx through to the 31 April xxxx. So this financial year is 1 June 2009 through to the 31 April 2010.

However I am a small company and am on 6 month VAT periods ( originally on 2 month periods ). These start at January through to December of any year. Two periods of 6 months each ( 1 Jan to 30 June, 1 July to 31 Dec ). So these periods do not tally with the Financial year. The current VAT periods cross from previous year to current.

So questions:

Can I have multiple financial years added to one BUSINESS FILE? So that each year has clearly defined transactions for that year? If so how?

If no to above, is a way around this to create a new BUSINESS FILE for each financial year? So in my case I have a .slr file for 1 June 2009 through to the 31 April 2010, another for 1 June 2008 through to the 31 April 2009 and so on?

Aidan

I should also add that ultimately I would like to add in previous years accounts retrospectively.

Rather than having previous years in different solutions I would like to collate the lot into the one application - solar accounts. Is this possible? If so how?

Aidan

Hello Aidan,

We recommend you enter all your data for all financial years into one data file. When you start a new financial year, you just continue to enter transactions in the same way. Once you have entered all the transactions for a year, click menu Setup > Financial Year > Start a new financial year. This will transfer the balance of your income and expense accounts to the Retained Earnings account. Note that you can always view reports for previous financial years by changing the report date parameters.

Regarding your VAT, you will need to manually work out your VAT liability for the period 1 January to 1 June 2009. Set this figure as the opening balance of the VAT Liability account, and add it to VAT return amount calculated by Solar Accounts.

Finally, we don't recommend adding transactions to a previous financial year as doing so will affect the current balance of the accounts.

Regards,

Hi Mark,

Thanks for the reply. But can I ask for dummies guide :D

I am currently adding current year account data - transactions for purchases and sales, expenses and so on.

The Financial Year is currently set to 1 June 09 - 31 May 2010.

As my first VAT period started in 1 January 09 up to 30 June 09 - Do I keep adding transactions for purchases and sales, expenses and so on back before the start of the current financial year ( 1 June 09 )?

You said "We recommend you enter all your data for all financial years into one data file. "

Then you said "Finally, we don't recommend adding transactions to a previous financial year as doing so will affect the current balance of the accounts. "

( Im confused )

Can I keep adding transactions back as far as I like? Ideally last 4 years. Of course I would do this over time ..

Aidan

Having looked at the way I think stuff is done - in the case I am talking of above would it not make sense to have a different data file per financial year?

I could say load the 1 June 08 - 31 April 09 file, then get it to do a 3 month VAT Return for the period 1 Jan 09 - 31 April 09, write down the amount. Then load the 1 June 09 - 31 April 2010 file and do a 1 month VAT Return. Then add the two amounts??

Aidan

Sorry for all the seperate questions, but as thoughts arrive ..

Could it be also that you start a new company file with the initial year first eg 4 years back? and then add new financial years as one progresses forward to the current year?

ALOT TO ANSWER from this and above, appreciate any thoughts ..

Aidan

Hi Aidan,

Sorry that wasn't clear! We recommend you do not enter any transactions before 1 June 2009 into Solar Accounts - keep this information in your existing software or a spreadsheet. However, for all financial years after 1 June 2009 enter all your transactions into the same data file - this will make it easier to produce reports which span multiple years.

Regarding VAT, suppose you charge your customers £12,150 per month (including £2,150 VAT). Your VAT liability as at 1 June 2009 would be £10,750, so you would go to the Accounts list, double-click on 'VAT Liability' and set the opening balance to £10,750. For the month of June, you would enter income of £12,150 (inc £2,150 VAT) which would bring your VAT Liability to £12,900 at the end of June. To record your tax return payment in July, enter a Money Paid Out transaction from the Cheque Account to the VAT Liability account for £12,900 (the VAT Treatment for this transaction should be 'Out of Scope'). This will leave the VAT Liability balance at zero.

I hope this makes more sense. Let me know if you need more information.

Cheers,

OK Mark,

Thanks for the simplicity. So - is their any way I can transfer past year or two into Solar Accounts?

I now understand that I can go from this year forward and all years hence will be recorded.

Yes - I wish to if at all possible to move past few years from spreadsheet to solar over time.

If possible - then how?

Aidan

Hi Aidan,

Yes, you could create a second data file for that purpose. You would then have two data files - one for transactions up to 31 May 2009 and one for transactions from 1 June 2009.

Cheers,

Thanks once again Mark,

A final question on this for now - I had already added expenses in the current year file going back before 1 June 09. When I saw your thoughts on this I then deleted these expenses up to 1 June 09. Maybe that was a boo boo?

Because now, under transactions, I have an EOY detail listed.

Should I just dump the current file and just start all over again?? Are the EOY amounts any harm? Can they be removed somehow? The EOY transactions listed are no longer there as I deleted them :(

Aidan

Hi Aidan,

You can remove the EOY transaction by reverting to the previous financial year (click Setup > Financial Year > Revert to previous year). Then start a new financial year beginning on 1 June 2009 (click Setup > Financial Year > Start a new financial year).

We need to make this financial year stuff simpler!

Cheers,

Thanking you - that sorted the EOY.

I am sure I will have more questions :D

With respect to this end of year thing - as an accounts numskull ( me ) - I saw it as a way of viewing in a self contained way - past financial year transaction sets.

Would it be an idea where you could bring forward balances from seperate data files to a current file if one was thinking of a seperate file per financial year?

I suppose I only thought of a seperate file per year as that sort of sits in my way of thinking. Maybe not good from an accounting perspective.

However I imagine their might be others who wish to retrospectively add past financial years to Solar for clarity and historic purposes. Particularly as in most cases revenue can go back 6 years. Tidier than a Spreadsheet anyway ...

Aidan

Hi Aidan,

Yes I can see how it can be confusing to 'retrospectively' add transactions from previous years. It's not likely that we will add support for carrying over balances from one file to another, but we will look at making it easier to include all transactions in one file (including previous year data).

Cheers

Hi Mark,

As I said - more questions maybe, heres one.

First, I have discussed with my accountant about aligning the VAT Periods with the Financial Year or visa versa. At the moment they are out of sync.

Just to say from on the ground, another thing people may find of issue, particularly now in this recession AND if they are on CASH BASIS Vat payments, is that they ARE NOT getting paid promptly. In my case I have clients who still owe me moneys from last January.

My Financial year at the moment is from June 1 09 to May 31 2010 ( I think I was saying April above by mistake ), So I have clients who still owe me from THE LAST financial year.

PLUS I have had clients recently pay me, but some of that payment has been for invoices since June and others from pre june, all in the one payment.

You can see the "nightmare".

Any thoughts on all this? I hope you dont mind me conveying info to you "from the ground" so to speak ..

Aidan

Hi Aidan,

Yes you've identified an area that is also unnecessarily complex in Solar Accounts. For any outstanding invoices, enter them with a date before 1 June 2009 (this is an exception to the no-transactions-before-June rule!). When you enter these invoices, set the account to 'Retained Earnings' (instead of 'Sales Income').

We will look into ways to simplify this procedure in future - probably by having a step-by-step wizard when you set up your data file.

Cheers,