I am using TM 10.0
Under prior versions of TM, our accountant has decided that closing entries are required to be posted. If she is working with 2008 data, she uses 12/31/2008 as the date for posting the closing entries. She decided to close out 2008 GL's by using 01/01/2009 - this does not appear correct. She would like for me to ask:
1. Is she correct in assuming year end closing entries are required - income and expense GL's?
2. Is she to date this entry, if so required, 12/31/ current year or 01/01/next year?
Thank you for your help.
I do not believe Billing Matters is designed to require closing entries. We have been using it for over three years, never used closing entries, and get good financials each year.
Typically I think of using closing entries to zero out Income and Expense accounts. With Billing Matters it calculates those totals by the date range entered for the reports requested. If at the end of January 2010 you want a total of your telephone expense for January it will give you the total based upon the transactions in that month. It is irrelvant to Billing Matters if 1/1/2010 started with a zero balance or a $35,000 balance. It will only report the difference between the beginning balance and ending balance as the value of the transactions for that period.
Someone more knowledgable of accounting might want to elaborate but I do believe I am telling you correctly that no closing entries are needed with Billing Matters.
Jeff WyattAbilene TX