Fiscal and Calendar Year
End Close

To assist you with your fiscal and calendar year-end processes, we’ve added information and links for your use.

FISCAL YEAR END CLOSE

This list is provided as a tool to assist with closing your accounting system. Contact us before attempting any steps with which you are not familiar.

NOTE: Most accounting packages clear data based on system set up options during period end processing. Check the software options before closing any periods. If you have any questions or concerns, ask first! Make a special backup before each module close!

This list is in the typical closing order but may vary - some sections include items you can start on TODAY!

INVENTORY
	Post all transactions for the period.
	Reconcile Inventory quantities.
	Complete a physical inventory count, if appropriate, and post any adjustments.
	Print the Inventory Valuation Report and other desired reports. Check for accuracy!
	Make a backup.
	Close the period.

PAYROLL
	Complete all Payroll transactions and processing for the period.
	Print all necessary reports for matching to the general ledger.
	Make a backup.
	Post Transactions.

ACCOUNTS PAYABLE
	Enter all transactions for the period.
	Post transactions. Print and verify the Aged Accounts Trial Balance report.
	Make a backup.
	Close the period.

ACCOUNTS RECEIVABLE
	Post all transactions for the period and complete month-end procedures.
	Print and verify the Aged Trial Balance and any other desired reports.
	Make a backup.
	Close the period.

GENERAL LEDGER
	Make sure to keep new period and prior period information separate. Most packages allow you to start a new period without closing. Make a backup before starting new period transactions!
	If the General Ledger is integrated with other modules, complete the closing and posting procedures for all other modules. (Caution: Some accounting packages require modules be closed in a particular order.)
	Make sure all entries are made for the period. Enter accruals, depreciation, and other period-end adjusting entries into the General Ledger.
	Post Journal Entries.
	Generate and review the trial balance and financial statements.
	Print the necessary audit trail reports, including a Detailed Trial Balance, and other desired financial reports. (At a minimum, your tax preparer will need a detailed general ledger, trial balance, and financial statements.)
	Make a backup.
	Close the period.

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If your fiscal year is on a calendar year, you need to complete the calendar year end checklist at the same time
(see below).

CALENDAR YEAR END CLOSE

This list is provided as a tool to assist with closing your accounting system. Contact us before attempting any steps with which you are not familiar. Some packages require both a fiscal and calendar close.

NOTE: Most accounting packages clear data based on system set up options during year end processing. Check the software options before closing any periods. If you have any questions or concerns, ask first! Make a special backup before each module close!

This list is in the typical closing order but may vary — some sections include items you can start on TODAY!

PAYROLL
	Order W-2 and W-4 forms.
	Order envelopes for the employee copies of the W-2 forms. (Note: Envelopes often change along with the forms.)
	Obtain current payroll tax tables from your software vendor.
	Contact federal and state tax authorities regarding any tax changes for the new period. (Note: This is an important step to take during each period of the year.)
	Verify names, addresses, social security numbers, for each of your employees. You must send a W2 to every employee you paid during the year, even if they no longer work for you.
	Verify that the release of software you are using handles the new W-2 forms.
	Complete all pay runs, including manual checks and bonuses.
	Install year end tax update, if required.
	Complete all Payroll month-end and quarter-end procedures.
	Enter any non-cash benefits paid to employees (for example personal use of company automobile).
	Make a backup.
	Verify W-2 and 1099-R form information. Note: If you make changes to the statement information, we recommend you make another backup.
	Print the W-2 forms and W-3 Transmittal form.
	Create a Magnetic Media file, if required.
	Delete inactive employees, if required.
	Archive inactive employee Human Resources information (optional)
	Set up fiscal periods for the new year, if required.
	Close the calendar quarter and calendar year in your Payroll module
	Install new year tax tables.
	Review federal and state tax tables to confirm all tax rates, limits, and rules are correct. Note: Software tax table services rarely update all tax items so you will need to verify your system is properly updated for all taxes. (This includes federal and state withholding taxes, unemployment, and disability.)
	f you have not had a chance to verify W2s before your first new year payroll, give us a call to help you set up a separate W2 company so you can take additional time with these very important documents!

ACCOUNTS PAYABLE
Order all versions of the 1099 forms (1099-MISC is the most common but many businesses are required to file others as well) and transmittals you require.
	Order envelopes for the recipient copies of the 1099s. (Note: Envelopes often change along with the forms.)
	Begin gathering completed W-9 forms on your 1099 vendors. In general, you must file a 1099 for any non-corporation (sole-proprietors, partnerships, and some special corporations) you paid more than $600 for non-merchandise goods (rent, consulting, etc.). Current guidelines include filing requirements for some types of corporations as well as some merchandise portions. Consult the Internal Revenue Service’s filing regulations for specific requirements.
	Post all transactions for the calendar year.
	Review transaction details for each vendor subject to a 1099 to determine the proper amount.
	Make a backup.
	Print 1099 forms.
	Close the calendar year in your Accounts Payable module.
	If you have not had a chance to verify 1099s before your first new year payables check run, give us a call to help you set up a separate 1099 company so you can take additional time with preparing these important tax documents.
	Make a final backup.

ACCOUNTS RECEIVABLE
	Contact all sales tax authorities regarding any sales tax changes for the new period. (Note: This is an important step to take during each period of the year.)
	Post all transactions for the period and complete month-end procedures.
	If finance charges are required to print on your statements, follow your software provider’s instructions for adding this information.
	Print customer statements. Verify the finance charge information is accurate for the calendar year.
	Print and verify the Aged Trial Balance and any other desired reports.
	Make a backup.
	Clear finance charges (if required).
	Close the period and/or year.
	Close the sales tax periods for the year (if required).
	Make a final backup.
	Enter any sales tax changes before processing new period transactions.

If your fiscal year is on a calendar year, you need to complete the fiscal year end checklist at the same time.
Go to Fiscal Year End Checklist.

Specific Software Links:

Dynamics GP (Great Plains) Year End Close (requires CustomerSource login)

The federal government sets the layout for W2s and 1099s so you can buy any government-approved forms to work with the above products.

The content and links on this page were graciously provided by our strategic business partner Accounting on Computers.

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