QuickBooks Year End Close – Prepare a to do list to help take care of all the important tasks that need to get done at the end of each year. They you can share this with your boss and team to keep everyone on track.
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Questions about QuickBooks
year end procedures often go unanswered
First confirm your QuickBooks accounting system is in balance
For QuickBooks users. Follow these basics steps to know if your accounting system balances are good.
If you are using an accrual accounting method, follow these simple steps each month to confirm your key balances are ok.
Step 1. Look at the general ledger (these balances produce your financials)
Print the General Ledger Trial Balance using the last day of month once all activity for the month has been entered.
Step 2. What do your customers owe you?
Print the Customer Aged Receivables Report – a detail list of how much your customers owe your business.
The Accounts Receivable general ledger account balance found on the General Ledger Trial Balance should = the total amount due found on the Aged Receivables Report
Step 3. What do you owe your vendors?
Print the Vendor Aged Payable Report – a detail list of how much you owe other businesses or individuals
The Accounts Payable general ledger account balance found on the General Ledger Trial Balance should = the total amount due found on the Aged Payable Report
Step 4. How much inventory do you have in stock?
Print the last page of the inventory valuation report – a detail list of the items you have in your warehouse and their value.
The Inventory general ledger account balance found in the General Ledger Trial Balance should = the total inventory valuation amount found on the Inventory Validation Report
Step 5. How much have you paid your employees?
If your company calendar year is January to December, then print the year to date payroll earnings report or get it from your payroll service provider.
The Payroll Amounts for Salary and Wages Accounts found on the General Ledger Trial Balance should = The total YTD Gross on the Yearly Earnings Report
Step 6. Is your cash in balance?
Perform your monthly bank reconciliation – when completed it should agree to the available cash balance in your checkbook.
The Cash Accounts general ledger balances found on the General Ledger Trial Balance should = the reconciled checkbook balance once the bank reconciliation has been completed.
Consider these in the month end close checklist at year end
- Write off bad debts
- Close unwanted purchase orders
- Close unwanted sales orders
- Issue 1099’s to vendors
- Print W2’s
- PDF copies of YTD payroll reports
- Perform a physical inventory count
- Consider online accounting software
- And there may be more…
What if I am a cash based business?
Then the bank reconciliation is a critical step so you confirm all the money you are spending has been recorded and all the money you are being paid and have deposited has been recorded.
What else do I need to consider?
There may be many more steps that need to be completed each month. A month end checklist is important to help you make sure necessary tasks are being completed each month.
What if my accounting system is not in balance after I complete my month end close checklist?
If you find discrepancies on any of these steps it might be time to work with an accounting software consultant to find the root cause. Make corrections to how your system is setup and give counsel to how to properly record the transactions. Software Training
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