A fiscal year (FY) is a period that an organization or government utilizes for bookkeeping purposes and preparing budget summaries. The fiscal year changes among nations and is basically utilized for financial reporting by business and different associations.
Before going ahead with closing a fiscal year, there are a few steps one should typically take to ensure that your accounting is correct, up to date, and accurate:
– Make sure you have fully reconciled your bank accounts up to year end and confirm that your ending book balances agree with your bank statement balances.
– Verify that all customer invoices have been entered and approved.
– Confirm that you have entered and agreed on all vendor bills.
– Validate all expenses, ensuring their accuracy.
To configure Fiscal year go to Settings of Accounting and enable the option of Fiscal Year under Fiscal Periods, and if you want to define Fiscal Year more or less than a year you can configure it via Fisacl Year under Configuration of Accounting Here, the user can add relevant details like Name, Start Date, End Date and Company and create a new fiscal year pertaining to company policy.
In odoo we dont have the option to close the Fiscal year instead of that we can provide Lock Dates for the fiscal year. so Lock Dates is the last date of the Finacial year that we are closing and in Odoo there is no need to do a specific year end closing entry in order to close out income statement accounts. The reports are created in real-time, meaning that the Income statement corresponds directly with the year-end date you specify in Odoo. Therefore, any time you generate the Income Statement, the beginning date will correspond with the beginning of the Fiscal Year and the account balances will all be zero.
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