Nostradamus predicted that the End of the World in 2018. For some finance departments it may feel like the end of the World with Year End Reporting.  However, it doesn’t need to feel like this.

Here are some tips for year end closing success:

Back up your data

• Backing up your ERP software system and business data is extremely important and is a necessity before beginning any year end process.
• Schedule for backups ahead of time and make sure they get posted on the company calendar.
• You will also need to ensure that you have enough hard drive space for all of the backups you need to perform.
• Be sure to test the back up to ensure the data is all present and readable.
• After you have backed up your system, you need to start preparing all of your files for year-end.

Review physical inventory

• Depending your ERP system, your historical data should be retained.
• It is still a good idea to review system settings so no data is lost during year-end closing.
• Be sure to check your General Ledger to see how long your system history is set up to be retained.
• Make changes as needed to preserve the data’s time frame of availability. When it comes to inventory, account for all products before the end of the year.

Print hard copies of important statements

• Print any year-end payroll and financial statements that are required.
• The most common statements include the Detailed Final Balance Report, Balance Sheet, Profit and Loss Statement, Statement of Cash Flows, and Statement of Retained Earnings.

Develop a year-end strategy and timeline as a team and reconcile payroll

• You need to develop a holiday strategy for accomplishing your business year-end processes that takes employee holiday’s into account.
• Make sure your staff are on the same page long before year-end actually begins and be sure this is a time when staff members will be around for it.
• You will need to plan on closing out payroll before the end of the calendar year.
• Reconcile payroll tax reports to the General Ledger as soon as possible so you have time to catch errors and avoid filing payroll tax return amendments.

Do the year-end closing procedures

Once you have prepared, previewed, printed, and planned sufficiently, it is time to carry out the year-end closing processes.

 

If you have any questions regarding year-end or you need a solution to no long make it feel like the end of the world, contact us today. We’re here to help you finish strong and start 2019 with a bang!