Why does my account still have a balance when I closed the fiscal year?
While some accounts will close and reset to zero in the process of a fiscal year end, some will retain their balance and carry the balance forward to the next year.
The temporary accounts get closed at the end of an accounting year. Temporary accounts include all of the income statement accounts (revenues, expenses, gains, losses), the sole proprietor’s drawing account, the income summary account, and any other account that is used for keeping a tally of the current year amounts. Since the temporary accounts are closed at the end of each fiscal year, they will begin the new fiscal year with zero balances.
​
The accounts that do not get closed (their balances are carried forward to the next accounting year) are referred to as permanent accounts. The balance sheet accounts are permanent accounts.
Related Articles
Processing Fiscal Year End
This document will cover items that should be addressed when opening and closing a new year in Softbase. For this walkthrough, we will be closing calendar fiscal year 2022 and opening a new year beginning 2023. You can, of course, adjust this as ...
Account Reconciliation
Account Reconciliation The Account Reconciliation is a new feature available on the Accounting Tab to help users reconcile a specific GL Account. The option is available if the Account Reconciliation Security is set on the Accounting Tab in the ...
How to set up core parts to post to a different account.
Our recommendation would be to set up a new parts group for your core part numbers in the parts setup tab under Groups. When setting up that parts group, you can then denote an inventory account for that group, which would be your Cores inventory ...
How do I apply a deposit to a work order?
The recommended approach to applying a deposit to a work order involves applying the payment directly to an open or closed invoice. First, you will need to make sure that your print options do not suppress payments. Then, you would go ahead an open ...
How do I process a warranty work order?
Softbase has a recommended process for warranty work orders that will need to be billed to a warranty vendor. First, you will need to have a warranty customer identified and set up in the system. Typically, this customer will be designated as both an ...