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The
general ledger in Clients & Profits X manages twenty-four
user-defined accounting periods. (C&P Classic X has fifteen
user-defined accounting periods.)
Your fiscal year can start at the beginning
of any month, for flexibility. Your fiscal year is set by entering
the names of your monthly periods in the Accounting Periods preferences
window.
Accounting periods are not especially related to any range of dates;
this means your periods don’t have to literally start on the first
day of each month. When a period begins and ends is based on how you
work—and especially on when you close the month.
Accounting transactions (i.e., payables, checks, billings, etc.) post
to the general ledger by accounting period, not the date. So the accounting
period is impor-tant for accurate matching up your costs and billings.
The
current accounting period is copied to new work automatically
whenever you add a cost, billing, etc. To change the current
period at the end of the month, simply enter a new period number.
Accounting periods can be selectively locked. A period is locked when
you don’t want more work posted into it. Locking a period isn’t
automatic; instead, it’s a management function that someone chooses
to do.
The
first day of your fiscal year is used by Clients & Profits
X to exclude work from previous years on reports like the Client
Budget Recap.
To set your accounting periods
A calendar-year based accounting system starts
in January and ends in December. However, your fiscal year can
begin at any month.
1 Choose Clients & Profits X > Preferences (Mac)
or Setup > Preferences (Windows).
2 Choose Accounting Periods from the preferences list
on the left.
Setting the current period. Your current accounting
period is not based on the date, so you’ll need to change
it at the start of every month. It’s best to change
it after the bulk of last month’s work is posted. |
3 Enter the names of your accounting
periods.
4 Close the preferences window.
Be sure to enter the first day of your fiscal year, too.
To lock a period
Locking a period prevents accounting work from
being added into a period that is closed. If a user tries to
select a locked period, a warning message appears and the current
period is chosen instead.
Locked periods apply to payables, checks, time sheets, receivables, client
payments, and general ledger journal entries. Jobs are unaffected by
the accounting period.
Your current accounting period can't be locked. Attempting
to lock the current accounting period will result in an error
stating that the current period can't be locked. Periods other
than the current accounting period can be locked and unlocked
by managers, as needed.
Remember,
if you unlock a locked period then post some work, you’re affecting
your financial statements. You should re-print any month-end reports,
such as the income
statement and balance
sheet, after making any adjustments to prior periods.
Customizing account classes
The names of the six G/L account classifications
are customizable without programming. These settings let you
tailor the terminology that appears on your printed financial
statements to your accountant’s needs.
The
terms “Assets and “Liabilities” are reserved
and can’t be customized.
1 Choose Clients & Profits X (Mac) or Setup > Preferences
(Windows).
2 Choose G/L Account Classes from the Preferences column
on the left.
3 Enter the names of your account classes.
4 Close the preferences window.
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