Keys to Relieving Year-end Stress

What’s the difference between year-end and month-end closing? In a lot of ways they’re the same, with year-end requiring a few extra steps. Most companies perform standard month-end procedures such as reconciliations,
reporting, and period-end maintenance. However, the most important thing for you to know about year-end closing is what is required versus what is optional.

Many tasks typically associated with year-end closing, like clearing history or deleting inactive records, can be accomplished at any point throughout the year. However, before you can proceed with the upcoming year’s transactions, you must Create a New Fiscal Calendar in Common Services and Create a New Year in the General Ledger.

So what tasks must be performed to complete year-end closing versus month-end?

  • Back up, Back up, Back up — You should be doing this at month-end as well; however, make sure you not only back up your data, but also your Site, Company, and User folders along with your license files, custom reports, and financial specs. These files and folders make up your Shared Data directories and are vital to running Sage Accpac.
  • Create a New Fiscal Calendar in Common Services — Creating a new Fiscal Calendar must be completed before you can post transactions into the new year. Keep in mind that creating a new Fiscal Calendar does not create a new year within the General Ledger. This simply allows all subledger modules to post transactions into the upcoming year and enables you to perform a year-end function in the General Ledger.
  • Run AP and AR Aging Reports — Run your AP and AR aging reports to ensure they reconcile to the General Ledger. Tip—If the aging report does not reconcile, try to run the report by Year/Period rather than document date.
  • Clear Activity Statistics in the Subledgers — Technically, you don’t have to take this step, but if you rely on the Activity Statistics, they need to be cleared before you post any transactions to the new fiscal year.
  • Create New Year within the General Ledger — This moves all of your income statement amounts into retained earnings, which enables you to start from zero with all of your Revenue and Expense accounts for the new fiscal year.
  • Payroll Users Need to Print W2’s or Relevé 1 — In some cases you may need to download and install the latest tax table update, pick up the appropriate forms, and perhaps adjust some amounts.

    What about Clearing History, Resetting Batch Numbers, Deleting Transaction Details, or Fiscal Set history? Yes, the year-end close is a good time to do all this, but it is not mandatory. Some of these tasks have far-reaching ramifications. For instance, did you know that if you reset your batch numbers, you lose your ability to drill down? Before you purge anything from your database, make sure you know what the end result will be.

    To help you understand the consequences related to these and many other yearend tasks, we have created a 1-hour online Lunch & Learn session that describes in detail your GL, AR, and AP year-end procedures. We have also created an additional Lunch & Learn specifically for Payroll Year-End tasks. In each session, we will go through the “Gotcha’s” to be aware of, and help streamline your year-end process so that you can rest easy.

To register for the Year-End procedures Lunch & Learn, please visit www.sagesoftwareuniversity.com/accpac, select "Training Types" and then select "Lunch & Learn".