Tag Archives: Year-End-Closing

Financial year-end

Software: MoneyWorks accounting software

Financial Year (aka Fiscal Year) consist of financial periods used to calculate annual income statement for businesses. If you are following the Calendar month, then your financial year-end closing is December.

During financial year-end closing, besides preparing the accounting schedules and post all transactions, you have to do a stocktake, bank reconciliation and set a closing exchange rate.

Do a backup before you start a stocktake process from the command menu of the MoneyWorks accounting software. You have to do the stocktake process before your new financial year. Once the stock count has entered, complete the stocktaking process by activating the Finish Stocktake from the Command menu (ensure dated as the start stocktaking date). Then, print the Stock Valuation Report (usually I will keep a PDF copy as well) and backup your company file.

stocktake

You should reconcile your banks that are in foreign currency before set the exchange rate for the year-end closing. Once you entered the exchange rate, MoneyWorks will automatically generate unrealised exchange gain/loss journal to adjust the banks, accounts receivable and accounts payable which are in foreign currency.

Backup and lock the period once you have completed the financial year-end closing to prevent other users from recording transaction into the wrong period.

Merry Christmas!

MoneyWorks | The Routine Stocktake

Software: MoneyWorks accounting software

Stocktaking (or inventory checking) is a process of verifying the stock (inventory) physically. It’s a process to check the quantity and verify the condition of the stock you have on-hand.

Before doing the regular stocktaking in MoneyWorks, you should post all the stock related transactions and make a backup of your document (company file).

Select the Items list from the Show menu. Highlight the Stocktake function and click the Start Stocktake button to start the stocktaking process. MoneyWorks will create a “Snapshot” of your current stock quantity on hand, if there is any stock related transaction after the Start Stocktaking process has been activated, the snapshot quantity will not be affected.

You can print a Stocktake list report from the Reports menu to do a physical stocktake.

Stocktake list

Once you have completed the physical stocktake, go back to the MoneyWorks’ stocktake window and enter the stock count into the Count column.

Stock count

After you have entered the stock count, go to the Edit menu and select the “Select All” function to highlight all the items. Then, click the Finish Stocktake button to complete the stocktake process (Note: you may use “Commit Selected” function if you prefer to complete the stocktake partially). In the Commit Stocktake window, enter the stocktake date into the Date field and use the Stock Adjustment expense account for the Stock Adjustment A/C field.

Commit Stocktake

Once stocktake has committed, a stock journal (create journal) will be automatically posted into the MoneyWorks document.

Stock Journal

Print a stocktake report from the Report menu as a reference and use it as a supporting document for your audit.

Stock Adjustment Report Setting

The stocktake report will show a comparison (quantity and value) before and after the stocktaking.

Stock Adjustment Report

Once the stocktake has been done, backup the document (company file) for future reference, and you may continue with your daily stock related transactions thereafter.

Year End Closing

Software: MoneyWorks accounting software

To-Do list for Year-End-Closing:

  • Accrual
  • Prepayment
  • Depreciation
  • Provision
  • Stock take
  • Stock Adjustment
  • Stock Reports (MUST PRINT)
  • Bank Reconciliation
  • Home Currency Adjustment
  • Financial Reporting
  • Backup
  • 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?

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!