1. Digital Adjusting Entries
Even in automated systems, accountants must record period-end adjustments for items that lack automated bank feeds or invoices. These adjustments are made using a Virtual Journal Entry Form.
  Virtual Journal Entry - Dec 31, 2026
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  Dr. 6800 Depreciation Expense ..................... $4,500
    Cr. 1555 Accum. Depreciation - Machinery ........ $4,500

2. Automated Depreciation Fixed Asset Modules
Advanced systems include an integrated Fixed Asset Module. When an asset is added to the system, the user selects its depreciation method (e.g., straight-line) and useful life. The software then calculates and posts monthly depreciation entries automatically, reducing manual work at year-end.
3. The Digital Year-End Closing Process
In manual accounting, resetting revenue and expense accounts to zero requires writing time-consuming closing entries. In a computerized system, this process is automated. When the accountant locks the fiscal year, the software locks past records to prevent unauthorized changes and moves the net profit balance into Retained Earnings automatically.
 
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