Introduction
Welcome to this user-friendly guide on understanding and utilizing the Accounting Period feature in Empress. This tool is particularly significant for business operations as it helps ensure the accuracy and integrity of your financial data.
What is an Accounting Period?
In Empress, an Accounting Period is a set timeframe during which certain financial transactions can be recorded and reported. This includes Sales/Purchase Invoices, Stock Entries, Payroll Entries, Journal Entries, and more. Essentially, these transactions are only allowed within the defined Accounting Period. Beyond this period, the selected transactions cannot be created or submitted.
Why is the Accounting Period Important?
When transactions are submitted, they affect the ledgers and the generated reports that use this ledger data. This can cause complications when creating financial reports for auditing or closing the accounting books for the fiscal year.
The Accounting Period feature in Empress helps you avoid these complications by limiting the timeframe within which transactions can be submitted. This ensures the consistency and integrity of your financial reports.
How to Create an Accounting Period
Creating an Accounting Period in Empress involves understanding the “Closed” option for the selected transactions.
The “Closed” option is used to specify which transactions should be restricted or “closed” after the end of the Accounting Period. If an Accounting Period ends and any of the selected transactions do not have the “Closed” option checked, these transactions will continue to be permissible.
To create an Accounting Period, you can follow these simple steps:
- Give your Accounting Period a unique name.
- Define the timeframe for the Accounting Period by setting the Start and End Dates.
- Modify the transactions table by adding or removing transactions. All transactions listed in the table with the “Closed” option checked will be restricted after the Accounting Period ends.
- Finally, save and submit your settings.
If any closed transactions are attempted to be saved after their Accounting Period ends, Empress will present a validation error, preventing the transaction from being processed.
Please note: No user role, including the role set in ‘Role Allowed to Set Frozen Accounts & Edit Frozen Entries’ in Account Settings, can save or submit transactions defined in the Accounting Period.
Conclusion
In summary, the Accounting Period in Empress is a vital feature for maintaining accurate and reliable financial reports. It offers a mechanism to control the timeframe for recording transactions, thereby enhancing the efficiency and seamlessness of your financial management process.
For further assistance or resources, please reach out to our Empress Support Team. We are here to help you make the most out of Empress for your business.