Accounting periods

Definition

Accounting periods are one of the foundations of accounting. They are interval of dates on which  annual accounts are based.

An accounting period takes into account all the entries that matches the date interval to feed the accounts.

A non-closed period allows the entries associated with it to be modified.

A period generally lasts 12 months.

Rules : 

- All accounting entries must be associated with an accounting period.

- The different accounting periods must follow each other without interruption.

 

First accounting period

When you create your account, an initial accounting period is created from January 1st of the current year to December 31st of the same year.

 

Accounting Periods

 

You can change the start and end dates of the period to adjust it to your specific accounting.

 

Periods' dates

 

An accounting period can have 3 statuses:

- Current: the end date of the period has not yet passed

- To be closed: the end date of the period has passed but the period has not been closed

- Closed: the end date of the period has passed and the period is closed.

 

Edit an accounting period 

Only a "current" or "to be closed" accounting period can be changed. To modify a period, click on the "Edit" button. You have the possibility to modify the start date and the end date of your first accounting period.

You can only change the start date of a period for any other period than the first one. Subsequent periods will automatically be adjusted according following the date entered.

When a period is changed, it impacts future periods, if any. Therefore, we suggest you apply changes from the oldest period to the most recent one.

It is not possible to modify a closed period.

Delete an accounting period

The only way you can delete an accounting period is if:

  • no accounting entries are associated with the period
  • it is the oldest period

For example below, you can only delete the 2020 period if you first deleted the 2018 and then 2019 period.

Periods list

 

Closing a period :

Closing a period is an irreversible action. It should only be done when your accounts have been closed by your accountant and/or chartered accountant.

Only the oldest period with "to be closed" status can be closed.

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