Enter Adjusting Journal Entries
1. Enter the final year-end adjusting entries, given to you by your accountant, by selecting the Record General Journal entry from the Accounts Command Center.
2. For each adjustment, the debits must equal the credits.
3. Select Record.
4. When all adjustments are entered, go to the Index to Reports from the Reports Menu at the Command Center.
5. Select the Accounts Tab and select the Trial Balance Summary report.
6. Select Customize and enter the dates of the financial year you are closing.
7. Display the report and be sure that the balances in each account correspond with the balances your accountant has.
8. Go to the Setup menu from the Command Center and select Preferences.
9. Select the Security tab and mark the Lock Periods option. Select the last day of the financial year. This will not allow any changes to the data file prior to this ending date.
Start a New Financial Year
Before you begin this process its important to understand what this process will do and how it will affect your financial data.
This process will:
1. Replace last year’s historical monthly totals with the monthly totals of the year just completed.
2. Purge (delete) all closed transactions dated the year that will be closed. The transactions dated after the year being closed will not be affected.
3. Purge transactions that affect any reimbursable expenses that have not yet been reimbursed.
4. Purge Contact Log Entries.
5. Transfer the balance of the Current Year Earnings account to the Retained Earnings account.
6. Reduce the balance of all income, cost of sales, and expense accounts to zero.
7. Prevent you from entering or changing transactions from the last financial year.
Note: This task requires single-user access.
Start a New Fiscal Year Process
1. Go to the File Menu from the Command Center and select Start a New Year, then select Start a New Fiscal Year. The Backup process window will appear.
2. Be sure to make a backup copy of your company file by selecting Backup. Give the backup file a unique name, such as BackupFY2008.
3. Select Continue after you have created a successful backup copy of your file.
4. The next step explains in detail what will happen during the Start a New Fiscal Year Process.
5. Select Continue.
6. Enter the New Fiscal Year, the Last Month of the Fiscal Year, and how many accounting periods for the New Fiscal Year.
Note: this information can be obtained from your accountant.
7. Select Continue.
8. The Receipts & Payments to be Processed window will appear.
If you will be using the features to Group with Undeposited Funds, Electronic Payments, and Pay Liabilities, then selecting the options in this step will ensure that any of these transactions that have not yet been paid or deposited will not be purged, even if they are closed.
9. After you have made your selections, click Continue.
10. The Audit Trail Entries window enables you to purge all entries the system is tracking in the Audit Trail Report.
You can select this security preference at any time to keep track of any changes made to your company file. Also, if you are tracking your inventory and using multiple locations, you can purge the audit trail of the item movements.
11. Select Continue.
12. The Closed Transaction and Other Entries window appears.
You have the option to select to keep the closed transactions in sales and purchases that would normally be purged at year end. This is helpful if you wish to refer to the detail of sales and purchases that occurred during last year. However, this information is only retained to view, you will not be able to edit these transactions.
If you are processing your payroll using your company file, then you may choose to keep the paychecks that would normally be purged. Keeping this information will allow you access to your payroll reports filtered for the year being closed.
Note: Selecting either of these options can result in your company file remaining large over time.
13. After you have made your selections, select Continue.
14. The Unreconciled Transaction window appears.
Select the accounts that you reconcile on a regular basis. Selecting these accounts will prevent the closed transactions, that have not been reconciled at the time of the Start of the New Fiscal Year procedure, from being purged.
15. Select Continue.
16. All of your selections have been made and now it’s time to begin the Start a New Fiscal Year process.
Note: This is the last opportunity you will have to cancel this process. If you are not sure if all the above steps have been complete then select Cancel. You may begin the procedure when you are sure all has been complete.
17. Select the Start a New Fiscal Year button to begin the process.
18. Once the process is complete, the Command Center window will appear.
19. Go to the Setup Menu and select Company Information. Be sure that the Current Fiscal Year has changed.
20. Go to the File Menu and select Verify Company File.
21. If there are no errors in your file, go to the File Menu and select Optimize Company File. This process will re-index your company file.
22. Please make note of the following information for your records.
Congratulations! You have completed the End of Year Process.