It January 1, the beginning of a new year and we set about to reopen the accounts of the budget that we have just closed in this way: the accounts opened with the costs and revenues of the previous year have created the taxable income; the accounts; assets, liabilities and shareholders equity represented this heritage farm come to the end of the reporting period.

It just that the balance sheet at the beginning of the new year, it should be reopened, with the balance of the closing. It obvious fact that this heritage December 31 (31.1.n) at the time of closing, must necessarily be the same as the January 1 (31.1.n +1), at the time of reopening. The income statement, however, having outlived its usefulness, with operating income, will not be reopened. The account that will be used for the re-opening of accounts is called “Opening Balance” and it will be included in the balances of the accounts at year-end, they were given in the balance sheet, and give the account balances who were in have.

financial-accounts

After this operation, will be open all the accounts opened in the assets and the financial opening will bring the same amount is in giving than in having. But there are accounts that, in the previous year, but do not have the financial accrual event, which must be charged to the new fiscal year. While the costs and revenues earned in the previous year economically, but with financial event in the new one, will be corrected.

Inventories of goods : the value of the assets sold (Inventories) of the previous year , January 1 to become a cost for the new year and, therefore, should be removed from the bill Goods Heritage and turned to account Goods c. opening balance of income. The writing settling back, then, the goods have account and the account goods c. opening balance in give, then go to close the account of goods and capital goods c to open the account. opening balance of income.

Prepaid expenses and liabilities: Prepaid expenses are costs that have had financial event in the previous year but are the responsibility of the new year in a few words the deferred assets and liabilities at the beginning of the new year, they turn to the cost or revenue that generated them.

Accrued income and expense: At the end of the previous year accrued income were in revenues for the credits and were considered in the course of maturation. Accrued expenses, on the contrary, they were in and were considered costs of the debt accruing. At the beginning of the new year, accrued income and expense, are turned at cost or revenue that generated them.

Invoices to be issued and invoices to be received: in the previous year have been sold or bought the goods for which it has not been issued or received invoice. To ensure that the new year will not be detected costs or revenues for these invoices, you write the account receivables for invoices to be issued or bills to receive.