Proper accounting period protocol

[Joi]

Having a debate in our office about when to change Peachtree accounting periods. As a natural course of events - we receive invoices that need to be booked into the prior month. There are sometimes new recurring journal entries that may not be setup/initiated until the end of the applicable quarter.

I have always changed the accounting period when ever making any entries into prior periods. We have a new person that says that isn't necessary.

If it isn't necessary - then why does Peachtree always warn you that you are entering data into a period other than the current period?

What's the rule-of-thumb here?"

[TheWolf]

It is not necessary. It warns you because it is posting into a prior period, and your totals will change. So it makes sure that you really want to post into that prior period. I train all of my clients to change the accounting period the first business day of the month. The only time I have them change it back, is to run financial statements or do account reconciliation.

[Joi]

Thank you Tom.