Entering Journal Entries in Previous Financial Year

We strongly advise you do not make changes to the previous financial year without consulting your accountant first

It will only be possible to enter journal entries in the previous financial year if Cash based accounting is being used
It is not possible to enter journals for the previous financial year if Accrual accounting is being used and the account has GST

Cash accounting is where income is recognised at the point of receipt and expenses are recognised at the point where they are paid. The only transactions entered into the system are payments (cheques, bank fees, etc.) and deposits
Accrual accounting is where income is recognised when earned and expenses are recognised when they are incurred

To check if Cash or Accrual accounting is being used click on the BAS toolbar option then click the Setup tab. In the top-left corner under General is the Return Basis. This will be either Cash or Accrual

Step 1: Previous Financial Year

1. File
   
2. Change Accounting Year menu option
   

iii. Highlight the previous year by clicking on it

Option B:

1. Go into previous year by clicking on the drop down arrow on the top right hand side of the screen.
   

Step 2: Journal Entries

1. From the main toolbar click on Journal
   
2. Add
   

Step 3: Profit and Loss Report

1. Reports
   
2. Profit & Loss 
   
3. Either print off report or make note of the amount
   
4. Go back to the Current Year using the same procedure as above 
   

Step 4: Opening Balance

1. Setup
   
2. Opening Balances
   
3. Assets and Liabilities menu option
   
4. Change the opening balance of the specified account/s to match the closing balance of the previous year