Financial Close Off

Overview#

BOS Professional includes all the accounting features required to run a small to medium-sized business, including a Ledger, Debtors, Creditors, VAT Control, Trial Balance, Statement of Profit or Loss and Statement of Financial Position.

How these reports appear depends on which accounting standard you subscribe to, for example, GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards).

In its simplest form, double-entry accounting comprises dated transactions, linked to a Debit and a Credit Account which update two primary reports: The Statement of Profit or Loss and the Statement of Financial Position.

1. Statement of Profit or Loss:
   • Also known as the Income Statement.
   • Income less Costs and Expenses = Profit.
2. Statement of Financial Position:
   • Also known as the Balance Sheet.
   • Assets - Liabilities = Equity.

The Trial Balance summarises all the accounts and helps ensure all the transactions were entered using the double-entry method.

Financial Close Off Date#

• The Financial Close Off Date prevents transactions from being created or updated inside a closed period.
• When a transaction date is set to a date which is less than the Close Off Date, the Period date is set to the date after the Close Off Date.
• The Close Off Date also applies to Stock Checks.

User Setting#

General Setting#

General Setting > Accounting > Financial Close Off Date. Options include:

• Period Only (Default)
• All Dates (Transaction and Period Date)