At the end of the Financial Year, Income and Expense accounts are normally closed off to a consolidated profit and loss Equity account.

Dynamic can automatically process these journal entries. The default profit and loss Equity account is number #94001, but may vary on your system.

The benefits of using automated Financial Year End Roll Over journal processing include

• ease of use
• speed
• accuracy

Financial Year End journal specifically affect business accounts, and does not affect client trust accounts.

Request guidance from your auditor concerning Financial Year End Roll Over.

Some auditors would prefer for you to run the Financial Year End Roll Over before they start working on the reports. This has the benefit of reducing the number of accounts to deal with. The consolidated profit and loss account contains full transaction details concerning the source accounts. In addition, the Statement of Profit and Loss will still display the original balances regardless of the Financial Year End Roll Over entries.

Other auditors may prefer to work with the raw data without any automated Financial Year End Roll Over transactions processed to the system. This makes it easier to detect discrepancies and provides a framework for reallocating items. In this case run the Financial Year End Roll Over after the auditor has completed the audit.

In any event, the auditor is likely to provide a set of journals to be done. This is standard practice as financial and tax reporting may require additional processing which falls beyond the scope of the software.

Note that supplementary journals may

How to run the Financial Year End Roll Over

• Select the date, typically the last date of the last Financial Year
• Select the target Equity account from the list
• Click Go
• Don’t blink. It’s so fast, if you blink, you will miss the transactions.
• Inspect the ledgers for the relevant entries.

Supplementary Financial and Year End Journals

Supplementary journals may be required for any number of reasons, including operational, financial and reporting. Transactions which require additional processing include depreciation and amortization. Additional updates based on operational requirements or amended tax guidelines may require supplementary journal entries.

It is not recommended to process these additional journals manually. Since the auditor will provide the required transactions in spreadsheet format, it is strongly recommended that these journals be imported directly into Dynamic.

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