Is the end of your financial year fast approaching? This can seem like an overwhelming task to some, however, to make this process as easy and stress-free as possible, we have compiled a list of preparation steps. Follow this Sage 200 guide, and feel free to bookmark it for future reference.
Bringing it back to basics, what is a financial year-end?
Year-end is the act of closing a financial year and opening a new one for the coming year. The process will also roll up your P&L Nominal Transactions to your Retained Profit/Loss in the Balance Sheet. Some companies align their year-end with January to December, others align with the tax year in April, but there is no rule as to when you can start and end your financial year.
You need to ensure your accounts are up to date and get any information you need for statutory submissions.
Our Year-End Guide For Sage 200:
In preparation for running your year-end, enter all your outstanding transactions leading up to the end of the year. Make sure that your journal adjustments have been entered, and that all Standard Cost Variances, accruals, prepayments, POP accruals, and any stock journals and adjustments have been entered.
Update any waiting postings and pending transactions in all ledgers.
Post any outstanding standing orders and direct debits.
You should post all outstanding invoices on sales and purchase orders up to the year-end date, any invoices dated after can wait until the new financial year has started. Year-End is also a good time to conduct a full stock take.
Run any foreign revaluations for Sales, Purchase and Bank accounts.
Run all your Sales Ledger Statements for all account customers.
Run any management reports such as your Balance Sheet, Trial Balance, Stock Valuation, Profit and Loss, Aged Debtors and Creditors Reports. Then export this these reports as a PDF so then you can keep them in your Year-End pack for future reference
Make sure that your creditors and aged debtors’ reports are reconciled up to the end of your financial year for purchase and sales ledgers. Again, this report should be exported for future reference.
Reconcile all your bank accounts.
Check any suspense accounts for values which should be journaled out.
Make sure that you close all accounting periods for the year in Accounting System Manager > Accounting Periods > Maintain Accounting Periods.
Make sure that the number and dates of all periods are correctly specified on the Future Financial Year tab.
Remove any Disconnected Logins.
Take a backup of the data.
Process Year End.
Run a Trial Balance for period one. Save a copy, and export this for future reference.
Open the required number of accounting periods you need for the new financial year.
Update waiting postings. This process updates the Nominal Ledger with transactions from the waiting postings file. Just be aware that this could take a while if there are many transactions to process.
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