The bookkeeping start date is an important decision that every business owner needs to make when setting up their accounting system. It is the date from which all financial transactions will be recorded in the accounting system. Choosing the right bookkeeping start date is critical to ensure accurate financial reporting and compliance with tax laws.
One of the main considerations when choosing the bookkeeping start date is the reconciliation status of the current books. If you have been keeping track of your financial transactions manually or using a different accounting system, you will need to reconcile all of your transactions and accounts up to the bookkeeping start date to ensure that your financial records are accurate.
Another consideration is your tax filing year. The bookkeeping start date should be at the beginning of your fiscal year to ensure that your accounting records align with your tax return. For example, if your fiscal year starts on January 1st and ends on December 31st, then your bookkeeping start date should be January 1st.
Docyt will start posting data to QuickBooks after the date mentioned in the Bookkeeping start date text field. For example, if your fiscal year starts on January 1st and ends on December 31st, then set your bookkeeping start date as December 31 in Docyt, so it posts data to QBO from January 01.
In addition to these considerations, there may be catch-up or migration needs if you are transitioning from a different accounting system or if you have fallen behind on your bookkeeping. In these cases, you may need to choose a bookkeeping start date that allows you to catch up on all of your financial transactions and ensure that your accounting records are up-to-date.
Once you have chosen your bookkeeping start date, all financial transactions should be recorded in the accounting system from that point forward. This will ensure that your financial reports, such as your profit and loss statement and balance sheet, accurately reflect the financial position of your business.
In summary, choosing the right bookkeeping start date is critical for accurate financial reporting and compliance with tax laws. It is important to consider your current books' reconciliation status, your tax filing year and any catch-up or migration needs when making this decision. By setting the right bookkeeping start date, you can ensure that your accounting records are accurate and up-to-date, which is essential for making informed business decisions.