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Level 1

Issue with changing fiscal year end temporarily

My current year-end is May 31, 2019, due to change in ownership I need to do a year-end on Dec. 31, 2018. After that, I would like to switch the year-end back to May 31, 2019.

My Accountant says this won't be a problem from an accounting perspective. My concern is the effect this will have on Quickbooks; as a result, I have a few questions:
1. a) After I change the year-end to Dec. 31st can I assume all the fiscal year reporting for 2018 will be from June 1, 2018, to Dec. 31, 2018?
b) Will the financial reporting period for previous fiscal year-ends change as well?

 

2. When I switch the year-end back to May 31, 2019, will the report all revert back for the past and future fiscal year ends?

 

3. Are there any other problems that I haven't thought of that will happen with the switching of year-ends, twice?

 

4. Due to all the potential issues, I'm considering not changing the year-end date and doing the Dec. 31, 2018 entries manually. Is there any risk with this?

 

I would appreciate any feedback on this discussion.
Thanks.

4 Comments
Level 15

Issue with changing fiscal year end temporarily


@tdmclennan wrote:

My current year-end is May 31, 2019, due to change in ownership I need to do a year-end on Dec. 31, 2018. After that, I would like to switch the year-end back to May 31, 2019.

My Accountant says this won't be a problem from an accounting perspective. My concern is the effect this will have on Quickbooks; as a result, I have a few questions:
1. a) After I change the year-end to Dec. 31st can I assume all the fiscal year reporting for 2018 will be from June 1, 2018, to Dec. 31, 2018?

No, Q does not do short year accounting, you will have to run reports and set the date range for each.
b) Will the financial reporting period for previous fiscal year-ends change as well?

yes the whole file will report on the fiscal year basis you set

 

2. When I switch the year-end back to May 31, 2019, will the report all revert back for the past and future fiscal year ends?

yes

 

3. Are there any other problems that I haven't thought of that will happen with the switching of year-ends, twice?

never can tell so make a back up before you make changes each time

 

4. Due to all the potential issues, I'm considering not changing the year-end date and doing the Dec. 31, 2018 entries manually. Is there any risk with this?

best way to do it in my opinion

 

I would appreciate any feedback on this discussion.
Thanks.


 

Level 1

Issue with changing fiscal year end temporarily

Thanks, Rustler.

 

I spoke with my Accountant this morning and I going to do the entries manually.  I won't have to deal the QB train wreck that way.

 

Level 15

Issue with changing fiscal year end temporarily

Change in Ownership? Are you sure you are not describing Short Year for the old entity, and now you have a New Entity? Or, a Pro-rated year on the tax filings, and not a change in QB at all.

Level 1

Issue with changing fiscal year end temporarily

It is a pro-rated year on the tax filings only and according to my Accountant no changes to QB is required.

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