Session Date

The Session date is important to Sage 50 as well as accounting and entering data.

The following are the different statuses a company one can have.

Sole Proprietorship

Partnership

Incorporated

Non Profit

In the case of Sole Proprietorship and Partnership, the fiscal year end must be December 31. As per CRA.

Ex: if you started your business in March 2017 your fiscal year end must be December 31, 2017.

It will be a short year (9 months) but the following year will be 12 months.

in the case of Incorporation and Non Profit, you can have any fiscal year end you like but can not go over 365 days.

Ex 1: if the company start date is March 1, 2017, the fiscal year end can not go over February 29,  2018, must stay within the 365 days.

you also have the choice of having a December 31, 2017 year end but the first year of business will be a short year as well.

Ex 2: have a client who is operating as a Sole Proprietorship. He will bring me a big box of papers separated in month order. so I will have 12 folders (Jan – Dec 2017)

When I am ready to start on his account I will set the session date December 31, 2017 and work within my range of Jan – Dec 2017. In this case it is not necessary to change the session date every day or very month. It is set for December 31, 2017 and I will work within the year. The system will let you know that I am entering in the previous months but I accept.

Ex 3: I have clients that are Non-Profit or Incorporated and when I am ready to enter their data I will look at the fiscal year end and weather they have payroll or not.

Lets say the fiscal year end is February 29, 2018 and they do have payroll. Their will be 12 folders in the box from March 1, 2017 to February 29, 2018.

I will set the session date for December 2017. I do this due to payroll. If the customer has paid wages I need the session date to remain as December 31, 2017 for if I advance in to January 1, 2018 all the tax calculations will be off for 2017 payroll.

Once I am satisfied that the payroll is correct, all Source Deductions have been remitted and the T4 and T4 Summary are complete, I will than advance in to January 2018.

I guess the only thing to keep in mind is that if you are a Non-Profit or Incorporated and have payroll do not advance beyond December 31.

Hope this helped to lesion the confusion about session date.

Let me know if you have a specific question.