Software: MoneyWorks accounting software
To-Do list for Year-End-Closing:
- Stock take
- Stock Adjustment
- Stock Reports (MUST PRINT)
- Bank Reconciliation
- Home Currency Adjustment
- Financial Reporting
- Lock your period
To some accountant closing the book can be a tedious accounting process and to request your sales team to stop issuing sales invoices while waiting for you to close the book is almost impossible.
How to close your book at your own pace and continue your following year’s day-to-day transactions at the same time?
Which are the tasks that you MUST do before your new financial year and what are those that you can hold?
You need to do a stocktake, adjust your stock on hand (both quantity and value if required) and print out a Stock Valuation Report (either physically print out or in PDF format) before proceed to the next financial year. This will affects the average cost of the item of your following year’s sales.
Next, set the year-end closing exchange rate and lock your period to prevent user from entering transaction into the wrong period.
Lastly, backup your company file (you should keep your year-end backup file separately from your daily backup file).
You may take your time (subject to company’s accounting policy) to complete the accrual, prepayment, depreciation and provision journals while your sales and purchasing team is doing their daily transaction such as Sales and Purchase Invoices.
Merry Christmas and a Happy New Year!