Accounting Settings
Configure your fiscal year start and accounting method — the two fundamental settings that determine how financial periods are defined and when income and expenses are recognized.
Navigate to: Settings → Finance & controls → Financial controls → Financial defaults
These two settings define the basic framework of your financial reporting. They should be configured before you begin recording transactions.
Fiscal Year Starts
The fiscal year start determines where one financial year ends and the next begins. You pick a month; the dropdown shows the full year span (for example "April - March"). It affects:
- How reports divide data into annual periods
- The date range for annual P&L, Balance Sheet, and Tax reports
- The Planner's default annual period alignment
| Common Start | Shown As | Used By |
|---|---|---|
| January | January - December | Most businesses globally. Calendar year — the default. |
| April | April - March | Common for UK businesses, subsidiaries of UK groups, India, Japan. |
| July | July - June | Australia, New Zealand. |
| October | October - September | Some public-sector entities and multinationals. |
| Any other month | e.g. "September - August" | Any month can be chosen; the system calculates year-end relative to it. |
Changing the fiscal year start after financial data has been entered will cause existing reports to re-align period boundaries. This may split existing annual data across two fiscal years. Only change this setting if you are migrating from a previous accounting system or correcting an initial configuration error.
Accounting Method
The accounting method determines when revenue and expenses are recognized — the timing rule for recording financial events.
| Method | When Revenue is Recognized | When Expenses are Recognized | Best For |
|---|---|---|---|
| Accrual Basis Accounting | When the invoice is posted — regardless of when cash is received. | When the bill is posted or the expense is incurred — regardless of when cash is paid. | Recommended for all businesses. Required for businesses above certain revenue thresholds in most jurisdictions. Provides the most accurate picture of financial performance. |
| Cash Basis Accounting | When the customer actually pays — not when the invoice is issued. | When you actually pay the supplier — not when the bill arrives. | Small businesses below regulatory accrual thresholds, self-employed individuals, and businesses where cash timing matters more than accrual matching. |
The system defaults to Accrual Basis Accounting, the standard for double-entry bookkeeping and required by IFRS and GAAP.
The accounting method affects tax obligations in most jurisdictions. Switching from accrual to cash (or vice versa) partway through a financial year typically requires regulatory approval and a formal accounting policy change. Do not change this setting without consulting your accountant.
Received money is applied to open invoices and bills by itself: on every posted receipt, whenever a customer or vendor page is opened, and on a background schedule. Opening balances are settled first, then the oldest invoice or bill by its own date. There is no setting for this on the page.