Hello everybody, This is Tanweer. Today I will guide you about Financial Year also called as Fiscal Year which is a period used for calculating Annual or can say like Yearly financial statements in businesses and other organizations. As we all know that Accounting and Billing software plays an important role in any kind of business.
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In India, Financial year of every business closes on 31st March. From 1st April, businesses maintain seperate books of accounts for next year. However, financial years vary between businesses and countries. In Accounting and Billing ERP software you can change financial year of your business in a very few steps.
In Digit24 Accounting & Billing ERP Software, you will be able to easily maintain your all day by day accounting cum inventory and billing details. You can also able to apply different kind of direct and indirect taxes. Here you will be able to easily create new financial year in active Company of Digit24 Accounting & Billing Software.
STEP 1) Open the Digit24 Accounting & Billing Software, Here you have to click on [ Change Financial Year ]
STEP 2) Here you have to click on [ Select Company ] and then choose your Company Name of previous Financial Year.
NOTE : At the time of choosing Company Name with Financial Year, Make sure that if Today’s date is 1st April 2018, then you have to select Company Name which has finacial Year 2017 means 1st April 2017 to 31st March 2018 and then it will become New Financial Year 2018 means 1st Aril 2018 to 31st March 2019.
STEP 3) Finally you have to click on [ Change Financial Year ]. Make sure that the New Financial Year is in correct range.
Most of the person and Businessman have to create New Financial Year after ending the previous financial year. During creating the new financial year, Here you have to face different kind of difficulties like :
- How to put opening balances as closing balances for last year are not available at this moment ?
- After Creating New Financial Year, If we make any changes in last Financial year, will it come in new Financial Year ?
- What to do with those ledgers which are not going to be used in next year ?
- How to get rid of last years mistakes or errors ?
- Why Customer’s and supplier’s GST numbers are not visible in new financial year ?
- How to include inventory in this year’s books ?
The better solution is that Whenever you get your company balance sheet finalized after entering the closing transactions just split the company on 31st march and go for next New Financial Year. This way you would automatically get the opening balances of the all ledgers and there would be no difference in opening balances.
The best part of Digit24 Accounting & Billing ERP Software is that if you have changed the Financial year, now there are 2 different companies that appear in Digit24 software. Last year Closing Balances have transfered in new year as opening balance. If you make any changes in last Financial year, then it will come in new Financial year.
Yes, you can make any changes in previous year and refresh your opening balances in new year anytime. To refresh your balances, Open new year company. Click [ Masters ] then select [ Opening Balance Editor ]
Here Click on [ Click here to Automatically Update from Previous year closing Balances ]
Click yes on confirmation message. it will take some time and your new year balances will be refreshed automatically. Do not Forget to hit the save button unless it will have no effect.
NOTE : Same like this process you can update your Opening stock from previous year closing stock automatically.
Click on [ Masters ] then select [ Opening Stock Editor ]
Here you have to Click on [ Click here to Automatically Update From Previous year Closing Balances ]
Your Stock Opening balances will be updated automatically from previous year stock balances. Don’t Forget to hit the Save Button before you leave.
Sometimes your customer’s and supplier’s GST numbers may not visible in new financial year. Therefore, It is highly recommended to download latest version of your ERP software before proceeding to change financial year. Download Latest version and change financial year from that version only. Ask your Software vendor in case of any clarification.
CONCLUSION : Financial Year also called as Fiscal Year which is a period used for calculating Annual or can say like Yearly financial statements in businesses and other organizations. Here you will be able to easily create new financial year in active Company of Digit24 Accounting & Billing Software.
We are providing a complete Accounting & Billing Software for your Business at www.digit24.in
