new user of Gnucash - questions

[Elizabeth Dodd]

On Fri, 25 Mar 2011 11:17:37 -0400
"Diann" <dhayes at hornelaw.us> wrote:

> Derek  Again, thank you for responding.  In the past we've used PCLaw
> for Attorneys, and another accounting program prior to that.  PCLaw
> for Attorney program especially requires, after reconciliation, that
> each month be closed.  The end-of-year is exactly as you said and was
> performed after our accountant had given the end of year journal
> entries to me for the Income-Expense-Equity end of year accounting.
> The end of year function could not be completed if the end of month
> had not been performed.  
> 
> I do not necessarily need to perform end of month functions, but
> according to our accountant, even with computing, I do need to make
> the end of year journal entries and then close out the year before
> continuing on into the new year.
> 
> How would this work with Gnucash?  If this is not necessary, would you
> please explain that to me? And why?  Thanks.

Now I understand.
Once upon a time, at work we had a program which at the end of the
month did all the calculations for the statements and printed out
statements for those who hadn't paid. It probably did more in that 'end
of month' as well.
When we changed to a Y2K compliant system there was a hiccup as staff
did not initially realise that statements can made any time, and don't
require all other functions to stop while the computer calculated a
statement. A whole set of end of month behaviours by the staff just had
to be dropped and new ones made.

Modern computerised accounting does not have any end of month or end of
year close of books. "Closing Books" at end of year is still popular
but its not a necessary part of computerised bookkeeping. Certainly you
can enter transactions continuously and perform the end of year
functions weeks or months later.
Gnucash does have a close books function for the end of the financial
year.