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Unlike traditional desktop accounting systems, cloud software packages (including QuickBooks Online, Xero and Sage Cloud) do not have a separate and structured year-end process.
There are however, a couple of important steps that we recommend you take once your year-end has passed and all transactions relating to that year have been posted.
Within your software settings you should see a ‘
Year-end’ field and a ‘
Lock Date’ field.
The year-end field is linked to the reporting function to generate reports for the current financial year and last financial year. The year-end date should be set to the current financial year that you are processing in.
The lock date field stops the system posting back into an earlier financial year by mistake after your accounts have been prepared and filed with the relevant authorities (e.g. HMRC and Companies House.) The lock date should be set to the date of the last set of completed accounts (so generally the prior year end).
Example:
- ABC Limited year-end is 31 December
- Year-end field should be set to 31 December 2022
- Lock date should be set to 31 December 2021
If you need any further advice or support, please get in touch with your usual Moore advisor. For help selecting the most appropriate accounting software based on your business needs, visit our
accounting software selection service page.