advice please: end of year

[Laura Lincoln]

On Tue, Apr 21, 2009 at 4:17 PM, Berni Elbourn
<berni at elbournb.fsnet.co.uk>wrote:

> Hi,
>
> I currently use a spreadsheet for my book keeping but would like to switch
> to Gnu Cash. My tax year ends April 5 so now is a good time to start fresh.
>
> However I would like to ask: which is the best way to handle periodic
> accounting periods.
>
> Should I just open up a new set of accounts for each month/year/quarter...?
> What is best practice please?
>
> ta
>
> Berni
>

I would figure out your year end Trial Balance sheet as of 4/5/09 and enter
that trial balance as your opening entry in GnuCash. Back out any uncleared
checks and/or deposits from your bank balance. Enter the outstanding checks
with their correct date written and account in GnuCash so that your first
bank rec can be completed. (This is one step I forgot to do when I set up my
client's GC file.)

You don't need to open up a new set of accounts for each month/year/quarter.
As long as you tell the software what your fiscal year is then the software
*should* do your reports correctly. It should automatically roll your prior
year Net income into Retained Earnings automatically for you. I'm new to GC
but that is what general accounting software should do automatically for
you. If it does not then hopefully someone will come along and correct me.
And if it does not then I will be looking for another accounting program for
my client.