How are the annual financial statements prepared?
How is the profit booked?

1. Start closing dialog

To complete a fiscal period, click on the fiscal year at the top and select Complete fiscal period. The checklist shown gives an overview of what still needs to be done and can optionally be completed with your own tasks.

• CashCtrl automatically checks the balance sheet values and indicates if something does not match.
• "Book depreciation" creates the corresponding bookings.
• The exchange rate differences that have arisen over the year are corrected with the current exchange rates.
• "Distribute profit and loss" assigns the profit or loss to the desired accounts.
• The annual report is provided as a PDF.

Once all items on the list have been completed, the year-end closing can be executed. CashCtrl thus closes the year or fiscal period and protects it from changes. However, fiscal periods can be reopened if adjustments are still needed.

2. How is the depreciation booked?

Before the depreciations can be executed, CashCtrl shows you these listed again for control. Only by confirming the depreciations they will be booked.

More about the depreciation types and possibilities in the documentation of the assets.

3. How are the exchange rate differences booked?

As far as possible, this is all done automatically. When accounts are kept in foreign currencies, during the fiscal period they are booked with different exchange rates (booking rate). Therefore, the balance of the main currency at the end of the fiscal period does not correspond to the calculated balance with the current exchange rate (balance sheet rate).

To compensate for this, the exchange rate differences are booked at the end of the year. For this purpose, CashCtrl displays the accounts in foreign currency and proposes the current exchange rate. This can also be overwritten, just click on the exchange rate and change it.

The account to which the exchange rate differences are booked is configured under Settings  Standard accounts. It is set to "6960 exchange rate differences" by default.

4. How is the profit or loss booked?

CashCtrl assigns the earned profit or loss in the reports. The profit/ loss line is not a real account, but only the calculated result. All or part of the profit/ loss must be booked to an account as part of the year-end closing.

For a single proprietorship, "2800 Own capital" would be a possibility. As a limited liability company, "2950 Statutory retained earnings" (and voluntary retained earnings) is available as a standard account. Or the profit is distributed.

The unbooked part of the profit/loss remains on the balance sheet in the following accounting period as unbooked profit/loss carried forward.