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In order to set up a brand new set of books i can use the previous years trial balance? Now in order to know that i have entered everything correct in opening balances i could generate a trial balance and these should match?? any tips or hits as to knowing i have everything set up correct before i begin entering the years transactions
Hi KKH!
Is there a reason you are setting up a new set of books? Are you creating a new data file to work on? Or simply attempting to get into your next fiscal year?
If you are looking to get into your next fiscal year, do not create another set of books. Instead, go to Setup > Fiscal Years, and Add a Fiscal Year. This will carry your balances over so that you do not need to enter any opening balances. This will allow you to continue working with your historical data intact.
Otherwise, yes, you would enter your opening balances, and make sure all your balances are the same EXCEPT for retained earnings. Retained earnings is your balancing account and will not match year to year. If all other balances in your opening balances are correct, then it is assumed that your retained earnings balance is correct. It is determined by taking your Prior Year Retained Earnings, adding net profit, adding personal advances, and deducting personal draws.
PYRE + Net Income + Personal Advances - Personal Draws
I hope this helps a bit!