When you are switching from another accounting service to NOCFO, you can optionally add the comparative period of the income statement from the previous financial year to the service as follows:
1. Add the concluded financial year to the service from the "Financial Years" tab under "New Financial Year." In this example, the ongoing financial year is 2023, and you are adding the previous financial year, 2022, to the service.
2. Enter the opening balances for the Income Statement and Balance Sheet accounts from the "Accounts" tab.
- For the income statement expense accounts, enter the opening balances as negative values.
- Enter other opening balances for the Balance Sheet normally, except:
- 1. If the previous financial year is the first one for the company, leave the Retained Earnings (Profit/Loss from Previous Financial Years) in the Balance Sheet without adding it manually. The system will automatically calculate this value based on the opening balances from the Income Statement.
- 2. If the previous financial year was not the company's first, enter the Retained Earnings (Profit/Loss from Previous Financial Years) balance from the Balance Sheet of the financial year that ended before the previous one. In the example, take the Profit/Loss from Previous Financial Years from the Balance Sheet that ended in 2021.
IMPORTANT!
3. Verify whether the Balance Sheet and Income Statement for the concluded financial year appear correct (e.g., as of 31.12.2022).
4. Confirm whether the opening Balance Sheet for the new financial year appears accurate (e.g., as of 1.1.2023).
5. Once everything appears correct, lock the concluded financial year (in the example, 2022).