There is no problem doing what you would like as long as you are certain all entries to the Payroll module are complete for 2022. When you change your Session date to 2023 all of the normal year end activities takes place (closing revenue and expense accounts to retained earnings). You can still go back to 2022 to make an entry by simply entering the actual date you wish to post the vendor or customer invoice. The program will make all of the necessary adjustments to the accounts to make sure the correct numbers are brought forward to 2023. 

I have indicated here using the calendar year, the same thing would happen if your fiscal year end is at any time other than December 31. You can always work in the current fiscal year and the immediate previous year. You should never go back to the previous year after the taxes have been filed for that year.

Hope tis helps

Good morning!

I am wondering about your comment regarding the Payroll module.  We need to open a new fiscal year (Aug 1st) and there will be some hours from July that will be in the first two pays in the new fiscal year, will this be ok?

Some businesses will accrue the payroll in the old year, and then reverse the entry in the new year, to account for the payroll expense for July that will not be paid until August. This will be a manual general journal entry.

All of my clients have a pay date on the last day of the month so the accrual is not necessary. Or they are very small and don't consider the amount that could be accrued to be material enough to make a difference.

Thanks Alwyn.  Just to confirm, that I can start the new fiscal year and move the hours at a later date if the company needs too?

Yes, once you have moved to a new year you can always go back to the immediate prior year and make entries. Once your books have been given to your accountant to prepare the year end you should not date any entries in the prior year except the year end adjustments provided by the accountant.

Yes, you can always make an entry in the prior fiscal year in Sage 50. However, once your books have been given to the accountant for the year end preparation you should not make any further entries in the prior year. The exception here would be to make the year end adjusting entries from the accountant only.

Yes, you can always make an entry in the prior fiscal year in Sage 50. However, once your books have been given to the accountant for the year end preparation you should not make any further entries in the prior year. The exception here would be to make the year end adjusting entries from the accountant only.