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What Do I Need To Do Before Closing The Year Down? What Needs Checking?

Starting at the beginning, have you got your OPENING Trial Balance agreeing to the figures your accountant finally produced  for year end last year? Run the Opening TB from Audit and check.

Run Recalculate Opening Balances
Run Recalculate Depreciation
Run Verify

Then check your closing figures by looking at the following:-

Fixed Assets -  run the NBV report.

  • Ensure the depreciation rates are consistent.
  • Ensure all items sold, scrapped or stolen are no longer showing.
  • Ensure all items purchased do want to be capitalised and that there is nothing in repairs that should have been capitalised.
     

Stocks -  run the Stocks report.

  • Clear out any of last year’s stocks that you have now sold or harvested or used.
  • Enter the stocks that you have on the valuation for year end.
  • Ensure the movement between opening and closing is realistic.
     

VAT

  • From the VAT report ensure each confirmed VAT return has a receipt or payment against it.


Banks -  run an unpresented cheque list for each account to the year end.

  • Ensure there are no cheques more than six months old here.
  • Make sure all interest is entered for deposit or loan accounts
  • Ensure the bank balance is the same as your last statement for the year.
  • Check the Petty Cash has the correct balance.


Debtors and Creditors - run the Age of Debt and Age of Creditor reports, changing the date to the last day of the year

  • Check these are the Debtors and Creditors you expect.
  • Check on the Summary report that those over 60 days old should be there.
  • Check you have PAYE and any other monthly payments paid in arrears entered.
  • Write off bad debts if appropriate.
  • Look through payments and receipts for first month or new year and ensure none should be here.


Standing Orders - we recommend you check all Standing Orders have been run and those no longer in use are deleted.

Current Year Transactions -  select the date range from the first day of the financial year to the last day. Run this report up on the screen. Scroll through this (or print it) and check the following:-

  • Are all transactions in their correct nominals.
  • Are there twelve mobile bills, or four electricity bills etc.
  • Are any loans reducing by capital only, is their interest in the overheads section.
  • What have you got in miscellaneous or sundry codes? Can you move them or make a new nominal if there are many for one ‘subject’.
  • Is anything prepaid – income or expenditure?


Prepayments and Accruals

Check all these are entered where possible. Look through new year transactions too.
 

Suggested list of reports available in LANDMARK KEY ACCOUNTS for Year End.

(the blue writing tells you where to find the reports. Date ranges should obviously be for the year you are ending)

PRIORITY

  1. Balance Sheet – Management/Bal.Sheet
     
  2. Opening Trial Balance – Audit/Opening T.B
    .
  3. Trial Balance – Audit/Trial Balance
     
  4. Fixed Assets NBV report and transactions for the year –
    Ledgers/F.Assets/Reports/Net Book Values and
    Ledgers/F.Assets/Transactions

     
  5. Stocks report – Ledger/Stock/Stocks
     
  6. VAT – closing account and ledger card for Customs and Excise –

Ledgers/VAT/Closing A/C/(year end date)and
Ledgers/Customers/choose CUSTOM/Reports/Ledger/for the year

  1. Creditors and Debtors – Summary and by detail (2 reports for each)

Ledgers/Supplier/Reports/Age of Credit/Closing date=year end date/Summary by trader
Ledgers/Supplier/Reports/Age of Credit/Closing date=year end date/Detail
Ledgers/Customer/Reports/Age of Debt/Closing date=year end date/Summary by trader
Ledgers/Customer/Reports/Age of Debt/Closing date=year end date/Summary by trader

  1. Unpresented Cheques for all bank accounts – Ledgers/Bank/Reports/Unpresented Chq/last statement in old year and date must be last day of year
     
  2. Bank Transactions for all cash accounts – Ledgers/Bank/Reports/Transactions/Summary (for each account)
     
  3. Nominal Transactions – Ledgers/Nominal/Transactions/date range is whole year/Invoice based
     
  4. Prepayments and Accruals – Audit/Prepayments/as at Last day of year (ditto Accruals)
     
  5. List of all Nominals – Ledgers/Nominals/List (Nominals only)

 

Before you physically close the year down we strongly recommend you Run Verify from Utilities, ring us if you are unsure of what it all means. Make sure you are certain there are no more entries to go into your old year. Close down the program and preferably the Computer/Server - then start up again and:-

  • Go to Utilities and choose Year end, say Yes to all the questions (if appropriate).
  • Choose the date for the Year end – it will be right unless you want to change your year end this time.
  • Choose a single nominal from the drop down (or set a new one up in the Capital group) to allocate your profit (or loss) into.
  • Continue with OK, and then whilst the computer created a new opening trial balance (- you will find your transaction numbers will continue to advance without intervention).
  • When the message comes up that it is complete you can go back to your Launchpad and continue with work on the new year’s data.