Adding Trading Accounts.

[David Bergum]

I have three years of business accounting, where I have a bank account, income and a few expenses in NZD and the remainder in USD.  In prior years I have been fudging the NZD income to make the books balance.  Since NZD income is periodically transferred to a USD account at the current exchange rate, this fudging is actually making the currency conversion the correct average over the transfers over the year.

Also, I have not closed book at the end of the year.

Anyone hazard a guess as to what would happen if I were to enable trading accounts and then go back and close book for 2010, 11, 12?  Would things become a terrible mess?  Would I gain anything by using trading accounts?

I am making a copy and playing around just to see what kind of a mess I end up with, but I thought there must be some good experience out there that I can draw upon!

It seems that I can just go back and close book for the prior years as it makes my trial balance easier to pass on to my tax accountant, but I still have to fudge my NZD income to make things balance!

Thanks and regards,
Dave