Starting your 2014 year will close off your 2012 year, you will be able to make entries into the 2013 year up until you open the 2015 year.

Starting a new Fiscal Year was a much bigger deal in older, or paper-based accounting systems.  In Sage 50 it shouldn't be.

I can't really comment on why it didn't work out when you did that last year, it should not be a problem.  Except for presentation-only reclassification-type entries, once you have received the final entries and recorded them, you should be able to re-run your year end trial balance, and it should match up.

Oh this is excellent.  Is there anything else that I need to do to open the new year so I still have access to the previous year for adjusting entries?  

Randy

if I'm starting 2014, your statement "..once you have received the final entries and recorded them, you should be able to re-run your year end trial balance, and it should match up.." only applies to 2013 final entries correct ?

if I understand Sage, someone can't record 2012 entries dated on the last day of fiscal 2012 - once 2014 is started - they would need to be recorded on the first day of fiscal 2013, correct ??

There is the setting 'Do not allow transactions dated before _______' under Setup | Settings | Company | System.  Once you start the new 2014 fiscal year, the program will suggest a new date as of the beginning of the new fiscal year, to prevent further entries into the previous year.

You can go into that menu and set that date to any time in the 2013 fiscal year, so when you have your 2013 final entries you can just set the date back to the last day of the year to enter them.

Yes, once 2014 is opened, the 2012 year is permanently closed.  Any adjustments from the 2012 year that haven't yet been opened, would need to be entered to the appropriate balance sheet accounts in the 2013 year.   If you have un-entered revenue and expense items from two years prior, they could be entered directly into the Retained Earnings / equity account, but ask your accountant where / when to enter them.

Thank you so much for all your help Randy, it is greatly appreciated :)