Resetting Accounts for a new year?
jrack
Member Posts: 9
We operate as a non-profit and want to start each year with a clean set of accounts to operate out of. I can create a new set of accounts each year and close the earlier one for new transactions, but didn't know if there was a way to "flatten" the accounts so starting balance is 0. Scoping the transactions for a report is good, but you will always get the starting balance which throws off the numbers a bit.
I know it's an odd request since that is not normally how businesses work, but for us it's a small team and each year is independent from the previous.
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Hey @jrack !
As it turns out, there is no way to "close out" accounts in Wave to 0 I'm afraid, unless new accounts are created and Journal Entries are used to transfer balances over. However, this would still leave you with a starting balance in the new account. In addition, certain accounts which are generated by Wave, such as Loss on Foreign Currency, can't be balanced to 0 manually.
Usually I would recommend creating a new business profile for each year in Wave, however I see that you are currently using Wave Payments. If you did decide to use this workaround, each time you open a new profile, you would need to submit a new application for Wave Payments.
If you are looking for more advice on closing your accounts at year-end, I recommend getting in touch with a professional accountant
Sounds good. In this case it is simple book keeping and not to the level of a CPA. My workaround is to have accounts tied to a year based on name so while not the best option it isn't a big deal. Reports get a bit muddy, but an export and filter helps to clean things up.