Year End Tasks for Accounting

Submitted by Dean Phelps on Sat, 01/13/2018 - 13:05

Enter Budget Information for the New Year

As the budget for the year is being prepared, enter the budget information into CDM+. 

Accrue Invoices As Expenses for the Previous Year

Charges for goods purchased or services provided in a given year are considered expenses in that year, even if the bill has not been paid before January 1. Accruing unpaid invoices for the year posts the expenses to the ledger as accounts payable which can be paid in the new year.

Review Vendor and Payment Information for 1099 Forms

Make sure the 1099 information--1099 form, 1099 recipient ID, and 1099 setup--is correct for Vendor Records. 

Reconcile December Statements

Once you have received end of December statements for your bank accounts, reconcile the accounts and file the reconciliations.

Process Credit Card Transactions for December

Once you have received statements that cover the end of December, enter invoices for charges with the transaction date, and mark them paid by credit card.

Create Journal Entries from Recurring

Create any journal entries from recurring entries for December.

Close December

After bank and credit card statements that include the end of December have been processed and recurring journal entries have been created, close the month.

Print Year-End Financial Statements

From the Ledger YTD reports in Accounting, print the financial statements. Print the balance sheet (statement of financial position) as of December 31. Print the income and expenditures (statement of activities) for January 1 through December 31. Print the fund activity report (Statement of Fund Activity) for all accounts for January 1 through December 31.

Close the Year

If your fiscal year corresponds to the calendar year, close the year. This will prevent changes to accounting data for the year that has been reflected in year-end financial statements and will calculate new beginning balances for the year.

Prepare 1099s for Vendors

E-file or print and distribute 1099s to appropriate Vendors.

Archive Ledger Entries

If desired, you can store older ledger entries in an archive database. Keeping older information in your database does not affect the performance of CDM+, but it is the equivalent of moving paper information out of file cabinets and into banker's boxes where it can be referenced if needed. Archiving older ledger entries will also allow you to clean up your chart of accounts from year to year.

You may choose to retain ledger entries for the current year and some number of previous years in your active database and to store older ledger entries in an archive database. If you choose to archive older ledger entries, run your archive after completing other year-end accounting tasks.