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Key things to take care of before the start of new financial year

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Key things to take care of before the start of new financial year

The new financial year is just around the corner and it is the perfect time to plan and make yourself ready for seamless transition of your company data into the new financial year using Tally.ERP 9. Year-end is always a challenging period for businesses as the company needs to close the books of the current financial year and prepare themselves to start afresh from the new financial year. Thus we have come up with key things which will help while preparing for the new financial year:

Handle Books of Accounts in Tally in the new financial year:


Change the Period

Every business can start their company in Tally irrespective of their finalization of books just by Changing the data period manually in Tally. In order to start fresh in the same company, you can simply change the date. That is the financial year ends on 31st March and you can begin a new financial year from 1st April. This will enable you to see different financial year reports together.

or

Create a New company in Tally

Creating a new company in Tally and importing all the masters and closing balances to start afresh in the new financial year.

But there are some precautions that must be taken care of, before splitting the company in Tally

  • Pending Purchase Order and Sales Order to be closed in the Previous financial Year, as we cannot carry forward the pending orders in the new financial year
  • All Bank transactions are Reconciled with Company Books
  • Clear all the Pending TDS References
  • Adjust all the unadjusted forex gain and loss using Journal Entries
  • All statutory transactions are properly closed

or

Split the company

The company can split the Company from the New Financial year and directly start working in the newly split company on Tally. The benefit of creating a new Company folder every financial year is it improves the performance of Tally and also it splits the data thus the data load gets divided. Another benefit is that the closing balance is transferred in both the companies as per the fiscal year.

But there are some precautions that must be taken care of, before splitting the company in Tally

  • Pending Purchase Order and Sales Order to be closed in the Previous financial Year, as we cannot carry forward the pending orders in the new financial year
  • All Bank transactions are Reconciled with Company Books
  • Clear all the Pending TDS References
  • Adjust all the unadjusted forex gain and loss using Journal Entries
  • All statutory transactions are properly closed
Any business using Tally can opt from any of the three options to seamlessly start their company in the new financial year. But apart from starting the new company in Tally, there are some key things to take care before the start of the new financial year which is as under:
  • Check and file GST Transactions before 31st March 2019, for claiming transitional credit against the sale of stock for which tax paid documents are not available
  • Verify the monthly Purchases made from registered dealers with records of purchases made in the books. This will help towards taking necessary steps to reconcile the books properly, as part of year-end tax planning
  • Reconcile sales and purchases as well as the GST tax liability along with the Form GSTR 3B returns. Any differences in the same can be brought into the Form GSTR 3B of March 2019
  • Reconcile the cash ledger, credit ledger and liability ledger updated in the GST Portal, with the books of accounts
  • Ensure debit notes, credit notes, rate differences, discounts etc. have been accounted for in the company books and the effect of these have been reflected in the returns being filed
  • Aging analysis of the debtors and creditors should be done, and all old invoices which have been issued should be paid before the 31st of March, 2019
  • Check the annual GST turnover in FY 2019-19. The turnover under GST will be an integral part of year-end tax planning for the business in FY 2019-20
  • Define new Series of Numbering for Tax Invoice – If anyone wants to change the series or numbering for invoicing or billing in the new financial year, he can do that from 1st April 2019. It is suggested to define Suffix and prefix in the voucher numbering in case you are continuing in the same old company just by changing the period

- Be ready for Annual filing of GST return. Currently the Due date for filing GSTR-9, GSTR-9A and GSTR-9C is extended till 30th June 2019 by CBIC for FY 2018-19

Remember Important Return Filing Dates – There are various important return filing dates in April and May which businesses need to be aware of:

  • 10th April – Monthly GSTR 1 to be filled by Regular Dealer for February 2019
  • 18th April – GSTR 4 to be filled by Composition Dealer for Jan to March 2019
  • 20th April – GSTR 3B to be filled by for March 2019
  • 30th April – Quarterly GSTR 1 to be filed by Regular Dealer for Jan to March 2019
  • 10th May – Monthly GSTR 1 to be filled by Regular Dealer for March 2019

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