It is a very common mistake when January arrives and we enter the wrong date. How often in the past few weeks have we stopped ourselves as we write 2025 instead of 2026 as the date? When we are entering transactions into our accounting software it is very easy to get the date wrong as well – it happens all of the time.
The best way to stop this from happening is to use the period close options in your software. This will prevent you from accidentally entering your transaction as January 2025 instead of January 2026. It will not stop you from entering December 2025 transactions as December 2026 but software systems usually give you a warning about this. So how do you close off a period?
Xero
To close off a period in Xero you will need Advisor-level access. You then select Accounting → Advanced → Financial Settings. Once you are in this section you have the option to Lock Dates.
Pick a date that is practical, and remember there are two options – one for all users and one that still allows Advisors to make changes. I suggest you fill in both sections.
MYOB
To close a period in MYOB Accountright Live, select Setup along the top menu of the MYOB program., then choose Preferences and click on the Security tab. This will give you the option to Lock Period.
If you are using the online version of MYOB, you can do the same thing by clicking on the Settings cog wheel in the top-right corner of the main screen, then select Business Details. At the bottom of the page, you’ll find the option to Lock Date.
These changes will not prevent you from entering future dated transactions, so keep your eye out in your accounts for these.
Closing off a finalised period is a great habit to get into, particularly once a BAS has been lodged or your accountant has finalised your accounts. Hopefully you will find this little tip handy as we grapple with getting the date correct in this new year.
