Closing the year

What is the close-year procedure doing?

1. Checking for out of balance entries: Checks for any out of balance journal entries through period 12. If it finds any it will stop the close year process. Then you can make any necessary adjusting entries and then restart the close year procedure.

2. Checking for unposted JEs in the previous fiscal year: Checks for any unposted journal entries through period 12. If it finds any it will stop the close year process. Then you can post or delete them and restart the close year procedure.

3. Calculating last year's net income: Calculates the companies total profit or loss by adding together all the YTD amounts for the income and subtracting the YTD amounts for job costs and expense accounts. It then records that amount to Retained Earnings.

4. Moving this year's totals to last year: Takes financial totals from the year being closed and moves them into the prior year. It also takes the second years (the new year) financial totals and moves them into the first year.

5. Purging last year's journal entries: Purges all journal entries from the year being closed.

6. Post beginning G/L balances: Creates a journal entry for beginning balances based upon the ending balances of the assets, liability, and equity accounts of year being closed.

7. Updating periods on this year's journal entries: Any accounting activity (Accounts Payable, Accounts Receivable, Client Payments, Checks, Journal entries, etc.) in periods 13-24 is moved into periods 1-12.

8. Clearing year-to-date client, vendor, staff totals: Moves this years totals for clients,vendors, and staffers to last year and clears this years totals.

9. Delete inactive G/L accounts: Any accounts that are inactive and don't have any balances will be deleted.

10. Check recurring entries: Changes the period on any pending recurring payables from 13-24 to 1-12.