How to enter previous year balances

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Hi, I am trying to enter the previous year balances along with the 30 June opening Balances.

I have entered the Balance Sheet from our old file on 30/06/14 with the balancing entries going to a miscellaneous account. 

I also need to enter the P&L amounts for each month so that we have comparative figures for LY reports. 

I am not sure what to with the balancing amounts from the P&L and the Balance Sheet. I tried putting the balancing amounts to the miscellaneous expenses account and at 30 June thats fine as it will go back to zero then but then the monthly comparatives don't work as all the P&L's go back to zero showing no income. I then tried putting the balances from the P&L's to the equity account but this then leaves a value in equity at 30 June that then carries forward.

Does anyone have experience in entering opening Balance Sheet values and monthly Profit and Loss accounts as well?

Any help would really be appreciated. 

Thanks, Rosie 
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Rosie

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Posted 5 years ago

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Hello Rosie, If you have not got any response so far , give us a call , we can guide you , thanks
Chandra 0295411338 or 0407068942
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Kelly Day, Accredited Partner, Accredited Partner

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Hi Rosie,

Use Retained Earnings Account - If you correctly enter ALL of the 30/06/13 (P & L AND Balance Sheet) then retained earnings will be NIL, then enter journals to record movement from 30/06/13 to 30/06/14 - Doing half from one year and half from another year will not return the correct results.

Hope that helps

KD
Adding to what Kelly has suggested, use your Tax Returns Financials, that is use their Trial Balance , this way you will have one set of accounts.
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Rosie

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I was entering the Balance Sheet at 30 June 2014 so i had opening balances. I was also entering monthly P&L's to get monthly comparative figures for the P&L PY analysis. I was entering the monthly figures one month at a time and have only entered July and August but perhaps if I enter all of the years worth I will find that the equity balance account I am using will go back to zero at year end? 

Thanks for the help :)
i would not do OE on monthly basis, personally , having done these , for so many clients, best bet is have the financials of your tax agents and do one whole journal starting with P&L and at the point of finishing the Pl items the difference should be you NP/Nloss, make sure it is , then do the net movement of your last year Balance sheet of your internal BS and current BS. Just make sure your Retained Earning a/c is balanced as per your Tax BS. i am  assuming your last years account do balance with your tax accounts as well. Also of you have Receivable and Payables , and you want to age them you will have to enter them prior via invoice entry .Can be tricky here though, you will have to contra items a/c .
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Rosie

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Our accountant has requested I enter the P&L figures monthly because we need to do monthly reports with a PY analysis and I can not get this if I don't enter monthly. But I just don't know where to code the net income balancing amount each month. It can't go to a P&L item so it has to go to equity. I just don't know where to code the net income balancing amount each month - perhaps I should code each months net profit to current year earnings. 

The other problem I have is that there are some entries posted into Reckon prior to June 30 - any payables or receivables owing at 30 June. So I can't just enter the Balance Sheet straight from MYOB as there are some entries already in reckon. 

Its such a headache, I though I was on the right track!
if you have problems , please call me , if your accountant wants you to enter monthly , then  you you can filter you TB OR ACCOUNTS monthly then enter, the difference will be going to Equity Balance a/c , and at the end of 12 month , this will have to be zerod out to balance with your YTD Reatained Earnings. Once entered you should be able to preview PL the NP OR LOSS should be same and RE as well to balance it .
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Margaret Haines, Reckon Partner, Accredited Partner

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I assume all processing to June 14 was done in MYOB. If so then the AR and AP entries to replicate the balances should be done by customer invoices or bills but NOT coded to income and expense accounts. Code to a suspense account. Then enter monthly P&L with the net profit or loss coded to the same suspense account. Opening balance sheet balances can be entered as each account in the COA is created with the contra automatically going to an equity account (can't remember name its given sorry and if this method is chosen then you can use this account instead of a suspense account). The opening bank account balance should be the balance from your bank, and then you should process transactions for any unpresented items (code to the same suspense account). But if the COA is already created you can process a general journal but the reconciling amount to the suspense account.


By default the resulting balance of the suspense account should equal your retained earnings balance at June 13.
(Edited)
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Reynaldo Rivas

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Great article. Thanks for the info, this is really a helpful post. BTW, if anyone needs to fill out a Monthly Profit and Loss Form, I found a blank form in this site PDFfiller. This site also has several related forms that you might find useful. http://goo.gl/YtmFv4

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