Few things people do which are wrong in my prospective are :-
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| Things to avoid in New Financial Year |
Don’t do these things
- Creation of New company
- Altering company
- Starting new year without changing invoice numbering
- Splitting the company.
Creating New Company
Creation of company should be avoided if it is not super necessary. That way we have to create all the masters again and we lose our balances also.
Unless and until you want to get rid of your current company as you may have too many unwanted ledgers, cost centers, and items etc so you want a fresh start.
Further Read : New financial Year :Is it right time to start a new company ?
Altering Company
I have seen many people do this blunder. Just because they cannot enter vouchers in new year because they have not changed the period, they do it my altering the company. This should not be done in any case. It would delete your previous data. Just simply press Alt + F2 in gateway of Tally and change the period. Nothing else is needed.
Starting New year without restarting invoice numbering
This is a common mistake people do. They just don’t restart the numbering with special provisions. You should add company initials and year initials in invoice numbers.
Your invoice should be like ABC/20-21/001 instead of simple 1. You should also configure your debit notes and credit notes etc also.
How this can be done is describe here.
How to restart your Invoice numbering
Splitting the company
This should not be done in new financial year. As this can be done any time when your last year books are prepared. Splitting the company also transfers the opening balances.
Check out this video for details
If you have any suggestions other then these you can tell me in comments.