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Fiscal Year Setup

  • 1.  Fiscal Year Setup

    GOLD CONTRIBUTOR
    Posted 19 days ago
    We have just transitioned to an S Corp and want to change the fiscal year end. A couple of things with this "scary" question.
    1. Can we change the Fiscal calendar mid year?
             a. Right now we are running 4/1/19 - 3/31/20.
    2. How or will this effect prior years?
             a. If there is an impact what can we do to mitigate the issues?

    Thank you,

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    Troy Harkness
    Miller Baking Company
    Milwaukee, WI
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  • 2.  RE: Fiscal Year Setup

    Posted 19 days ago
    ​Troy,

    Yes, you can change your Fiscal year close mid year. The effect will be that you will close your first year from 01/01-03/31. You will then have a second close for the period from 04/01-12/31. That is the only way that you can do it. Because of this method, this will not effect prior years.

    Please let me know if  you need some help completing this task.

    Mark

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    Mark Walker
    Controller
    ProSphere
    Alexandria VA
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  • 3.  RE: Fiscal Year Setup

    GOLD CONTRIBUTOR
    Posted 19 days ago
    Mark,
    I spoke with my controller and found out that 2018 is still open. Could we close 2018 on 12/31/2018 and then start 2019 on 01/01/2019?

    Thank you for all your help,

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    Troy Harkness
    Miller Baking Company
    Milwaukee, WI
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  • 4.  RE: Fiscal Year Setup

    TOP CONTRIBUTOR
    Posted 18 days ago
    If you haven't run 2018 calendar close you may want to hold off at this point.

    A lot will depend on the structure of the switch to an S Corp and how the legal & accounting boys are doing it.

    If you are changing from a C corp, a partnership, an LLC or a sole proprietorship ? You shouldn't disclose that on this forum.

    How are assets and liabilities moving from one legal structure to another will decide whether you need to start a new data base for the new S corp. If so you may not be able to just convert the data base.

    but let's assume you can use the same database you may want to try this :

    Copy the unclosed 2018  data to a sandbox  environment ---- close the 2018 year  as of 03/31/2018 , then close the 2019 year as of 03/31/2019.

    This will preserve your ability to run comparative 2018 vs 2019 statements (ye 03/31/2019 v. ye 03/31/2018).

    if you use a short 3 month year ending 2018 you will lose comparatives for a year and a half I think.

    But finance needs to figure out the legal tax and accounting issues first.

    VOTING for NAVUG ALLSTARS ENDS 09/06/2019 , VOTE EARLY and OFTEN!
    OK, JUST EARLY!.

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    Michael Carr
    VP , Finance
    Philadelphia Scientific LLC
    Montgomeryville PA
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  • 5.  RE: Fiscal Year Setup

    GOLD CONTRIBUTOR
    Posted 18 days ago
    Thank you for your input Michael. I will use your advise and try this out in a sandbox.

    Thank you again,

    ------------------------------
    Troy Harkness
    Miller Baking Company
    Milwaukee, WI
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