End of year reset for the end of financial year.

Margot

I want to know my yearly summary and I have previous years amounts effecting the true figures. My tax is double what it really is and everything is reconciled. I have 2 business and personal but I have to tripple my data entry has wave updated since 2019. It is now 2021

NancyC

Hey @Margot

In Wave, there is no need to close out the year! While other accounting platforms don't allow you to touch historical data, in Wave, you can pull up reports and make adjustments at any time. This means that your previous years never really "close". All that happens at year-end is that current year earnings get zeroed and added to previous year earnings.

At the start of your new fiscal year, you will see your new previous year earnings balance, fresh income and expense account balances, and your usual bank account balances.

What Wave doesn't do is put those amounts under a common account, such as retained earnings, that you can post transactions to. If you want your previous year income/loss to roll forward into retained earnings, you will need to manually do this. Here's how:

1. Run an income statement for the year. This will give you all of your income and expense final balances.
2. Save this statement in excel or a PDF so you have all of the balances saved.
3. Click Accounting > Transactions > More > Add journal transaction.
4. Enter the balances as opposite of how they appeared on your income statement.
5. Note that the amount of Net Income on the Income Statement matches the amount of the debit to Owners Equity.

Margot

The previous years data is effecting my year as our financial year in Australia is July 1 to June 30. It is all journal entries moving numbers over to Owners Equity. There does not seem to be any automation it is all manual entries.

KiahD

Hey Margot,

What I would recommend doing in this case is changing your Fiscal year end date. You can find the instructions on how to do this here!