Are you searching for the perfect guide to change financial year in Sage 50? If that’s so you have reached the right spot. In this comprehensive guide we have provided you with the complete details to change the financial year start date in Sage 50.
Table of Contents
Points You Must Remember Before You Prepare Year-End Report
Here, we have listed some points one must know before proceeding further while preparing for the year-end report.
- One must have added all the transactions up to the last day of the financial year.
- It is advised to run the below-listed reports to accomplish the year-end process.
◦ Profit and Loss Report:- This report reflects the number of sales, direct expenses consisting of the cost of sales, and overheads for the financial year. Moreover, it also displays the resulting gross and net profit & loss.
◦ Balance Sheet Report:- In this report, users must mention all their company’s assets, liabilities, and equity.
◦ Trial Balance:- You are required to run this report for “This Financial Year” period. This report mainly represents the balance on each account and comprises the balance before the first day, as given below.
▪ Balance Sheet Accounts:- In this section, the values before your financial year start date are brought forward and listed in the total.
▪ Profit and Loss Accounts:- In this part, all the values for this account before the financial year start date will be displayed on the Profit and Loss Account.
Stepwise Instructions to Change Financial Year-End Date in Sage 50
The steps to change the financial year-end date in Sage 50 is a simple process if you have proper tips for doing so. Go through the detailed instructions given below for better understanding.
1. Move to the Business Settings menu from the Settings option in the initial stage.
2. Afterwards, opt for the Accounting Dates & VAT option.
3. You must pick the last day of your new financial year within the Year End Date field.
4. Finally, hit the Save option to restore the changes made.
Stepwise Instructions to Change the Financial Year Start Date in Sage 50
If you are still experiencing issues while trying to change the financial year start date in Sage 50, then don’t panic. Instead, go through the stepwise instructions listed below attentively.
1. Primarily, you must opt for the Settings menu.
2. Afterwards, head toward the Financial Year option, followed by the Change option.
3. Thereafter, hit the Yes option when you get the pop-up regarding backups and check data.
4. Subsequently, click OK, followed by the Yes option, and proceed to the next step.
5. End the process by selecting the OK option. Later on, hit OK once again to change the year start date.
Detailed Steps to Shorten the Financial Year in Sage 50
Here, we have described all the stepwise instructions to shorten the financial year in Sage 50. Go through the instructions below attentively.
How Does the Financial Year Work?
Whenever you install the Sage accounts for the first time, you might be prompted to add the month and year your financial year starts. Once this financial year is chosen, your financial year will pursue for 12 months from the date you have begun your starting date.
However, if your financial year has been changed and you are supposed to shorten it. In that scenario, you must return the beginning date to reflect the new end date. To accomplish it, you have to proceed with the following steps below.
1. In the beginning, you must prepare for the year’s end.
2. After that, you are supposed to modify your financial year.
3. Finally, you have to Run a Year-End.
How Can You Recompute the Balances?
You might experience the following changes when you use the Financial Year option to modify your financial year’s starting date.
1. Depending upon the Audit trail transactions, you might discover that your year-to-date turnover amounts are recalculated.
2. Moreover, the monthly sales amount is also computed again depending on the product transactions.
3. The monthly nominal code balances are also re-establish, subject to your audit trial’s transactions.
Instructions to Run the Reports for The End Of the Shortened Financial Year
For instance, if you wish to change the financial year to begin in January 2021, you have to set your financial year from Jan 2020. This is so because the changes made in the year would signify running the standard year-end reports at the end of Dec 2020. Furthermore, the report that is included are as follows:
1. Trial Balance
2. Aged Creditors & Debtors
3. Profit & Loss
4. Balance Sheet
Stepwise Instructions to Run The Year-End Reports
You will see that the Profits & Loss amounts are cleared off, including the year-end date, by running the year-end reports. Also, it advances the financial year’s starting date to the required beginning date. Below, we have elaborate, simple steps to run the year-end.
1. In the initial stage, go to the Tools option and choose the Clear Period End option.
2. Afterwards, hit the Year End option and tap the Run Year End option.
Summing It Up!!
Hopefully, this blog satisfies your query on how to change the financial year in Sage 50. However, if you still need help changing the financial year, consult our professionals or get immediate assistance through live chat. Drop a message to our experts and get your issue resolved.