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

When the financial year is over, the accounting period is closed and the annual report can be prepared. For this purpose CashCtrl offers a simple, clear dialog.

To do this, click on the business year above and select "Close". The checklist shown gives you an overview of what still needs to be done and can optionally be supplemented with your own tasks.

  • CashCtrl automatically checks the balance sheet values and indicates if something does not match.
  • "Post depreciation" creates the corresponding postings.
  • Exchange rate differences that occurred during 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 PDF.

When all items on the list are completed, the annual report can be executed. CashCtrl thus closes the year or accounting period and protects it from changes.

1. How is depreciation posted?

Before e.g. the depreciation can be executed, CashCtrl displays it again for control. Only after confirming the depreciation is it posted.

For more information on depreciation types and options, see the documentation.

2. How are the exchange rate differences booked?

Everything is done automatically. If accounts are kept in foreign currencies, different exchange rates during the accounting period (posting rate) will be used trough the year. Therefore, the balance of the main currency at the end of the accounting period does not correspond to the calculated balance at the current exchange rate (balance sheet exchange rate).

To clear this up, you post the exchange rate differences at the end of the year. 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 posted is configured under Settings  Default Accounts. It is set to "6960 exchange rate differences" by default.

3. How do I book the profit or loss?

CashCtrl shows the earned profit or loss in the reports. The profit/loss line is not a real account, but only the calculated result. Now it is up to you to book the profit.

For a sole proprietorship "2800 equity" would be one possibility. As a limited liability company, "2950 Legal reserves" (and voluntary reserves) is available to you as a standard account. Or the profit is distributed.

4. Closing an accounting period

With the closing, all bookings are executed and the accounting period is closed. At the same time CashCtrl opens the following new accounting period. All opening balances are automatically transferred or continuously calculated.  Accruals and deferrals or manually created carryovers are not automatically posted back again, this must be done manually. Otherwise you can start.

Can you just reopen a period?

How accounting periods work

Think of the accounting periods as brackets enclosing entries. Reports and evaluations are created for this period. If the duration of an accounting period changes, a new one can be created and the old one deleted at any time. Overlong financial years are also possible, as are shorter ones.

When you close an accounting period, all documents and bookings are fixed and can no longer be changed. Apart from the entries for profit entry etc., not much else happens - very simple.

1. Reopen the accounting period

In the upper right corner of the screen, click on "Reopen" to reopen the period after a short request. The year-end postings are still there and are not cancelled.

2. Make adjustments

Make all adjustments and close the year as usual by clicking on "Close" in the top right corner.

That's it.