Financial Year End Closing Process is an integral part of every SME business operations. There are various tasks like bank reconciliation, aging of debtors, creditors, Stock valuation, preparation of financial statements, tax payments etc. that needs to be taken care by the business. A closing balance is the amount remaining in an account at the end of the year. The reason for closing accounts is to ensure that revenue and expenses will begin with a zero balance and assets and liabilities will carry forward with old balances in new financial year.
The closing balance of the last financial year will become the opening balance for the new financial year. EZTax.in GST Accounting software helps the SMEs in dealing with the year-end process. With EZTax.in GST Accounting software, the business can smoothly transition to new financial year.
Make sure that all the invoices, purchases, expenses & vouchers are entered in the system. Then go to 'R & R' menu and click on Reports. You can review & print or download the transactions report, Profit & Loss, Cash/bank book and stock report for the respective financial year for future use.
Note: The system will maintain the past transactions even after start entering the new year's data.
Before taking above reports, make sure you run bank reconciliation, check aging of debtors and ageing of creditors, physical stock verification and corresponding stock adjustment entries, pay taxes as per prevailing laws such as TDS, Advance Tax if applicable, process monthly / quarterly GST returns.
Action Go to Return Center >> Reports
Run Month Close process for the March month to close for the whole financial year. If you want to close the old financial year, select the March month for the respective financial year. After you click month close button, the process will freeze all the previous transactions to limit the edit capability. Also, no new transactions can be entered for the period of closing.
Once the process is successfully completed, closing balances for the period will be automatically considered for the new period.
Action Go to Return Center >> Month Close
Finally, all your business accounts get settled and assets and liabilities accounts will be carried forward to the new financial year. The closing balances of assets and liabilities of old financial year will be transferred to the current financial balance sheet as opening balances. Check them and record by printing them.
Action Visit Return Center >> Balance Sheet
EZTax.in GST Accounting software continues the same series of invoice numbering as of last financial year. If you want to start the new invoice number sequence or reset to start from 1 for the new financial year, follow the below action and change the invoice number starting letters and numbers.
Note: Once you start with an initial number or series or a combination of both, it is strongly advised to follow for the whole financial year as the GSTN mandated to provide missing invoice numbers part of the GST Filing.
Eg. Suppose your last Invoice number for Apr 2019 was '2019/100' and you changed the number to start from '2019/200', this creates 99 missing invoice numbers in your GST Return file for the month of Apr 2019. Such changes may have consequences with the Tax Authorities.
Action My Business >> Detailed View >> Invoice Number setup
Majority of the Small & Medium businesses do depend on the customer relationships more than the branding. It's time to connect with your customers / clientele to say, "Thank you!" and wishing them the very Best for the new Year, if possible, offer a discount code and/or introduce new products / services thru eMails and SMSs.
Now you can send SMS messages, and mails to all your customers and suppliers thru Contact Master, an easy & convenient way.
Note: Check your SMS Credit to make sure you have enough for the day you want to send. If not, contact firstname.lastname@example.org to request for new credits. generally, each SMS credit cost ~15 paisa. Check w Team EZTax.in to see the prevailing charges for such.
Action Sales >> Masters >> Contacts >> Customers & Suppliers SMS & e-Mails
In case of any questions, you may post your query to email@example.com
GST Accounting Software Price: Rs.1499 after 70% Off in India refer pricing for other countries such as India, Australia, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, & UK
Easiest GST ready Accounting software