End of Year Closing Procedures for MotorTraxx
FOR THOSE USING GENERAL LEDGER
(ALWAYS CHECK WITH YOUR ACCOUNTANT FIRST!)
(Items 1, 2, and 3 should be done prior to the end of the day, the last day of your fiscal year.)
1. Review your Accounts Receivable records to insure all payments have been recorded, and all credits have been applied. Check to insure all invoices to be charged to Accounts Receivable have been saved and paid.
2. Review Accounts Payable. Restock all parts invoices (receivers) and post. Review your records to insure that all payments have been posted, and that all checks written outside of A/P have been properly disbursed and that credit was correctly applied. Make sure you have eliminated all Short Sales items.
3. Make any General Journal entries needed. Check out your miscellaneous expenses and miscellaneous income accounts and disburse any funds to the proper expense account. (The following steps to be done at the end of the day, the last day of your fiscal year.)
4. Close (Save and Pay) all finished repair orders or parts tickets that should be closed.
5. Check all bank accounts for any undisbursed Quick Checks. If any are found, disburse them to the proper accounts. End of Year routine will not run until all checks are disbursed.
6. Do a tape backup. (Always a good idea before closing the Daily Book. Should any problem occur during the posting of the book, you can always go back to where you were before you started to post.)
7. Close the Daily Book. (Do not close over Short Sales.) Print at least a Summary.
8. Run all reports:
- Accounts Receivable (cannot be rerun after end of year)
- Accounts Payable (cannot be rerun after end of year)
- Trial Balance
- Balance Sheet
- Inventory Valuation (cannot be rerun after end of year)
- Income Statement
- Checks Register(s)
9. Check all reports for accuracy and against corresponding G/L accounts if applicable. Make any needed corrections. (Remember, G/L journals allow you to make most needed changes.
10. Payroll: After your last payroll for the year is completed, go to 5 PAYROLL, then 7 MAINTENANCE, and 5. PRIOR YEAR LIMITS. Enter in here the current year limits for FICA and Medicare. When the new limits go in your tax tables for the coming year, the MotorTraxx will use this table to calculate the final 941 amounts. Failing to do this will result in incorrect numbers.
11. DO A BACKUP! (Use a different destination than you used for the backup you did prior to doing Daily Book.) If you have three years of data, this backup will be your archive backup for the third year.
12. Run the End Of Year routine. (This cannot be done prior to the last day of the fiscal year. If you are unable to run the routine on the last day of the year, do so as soon as possible, and certainly before any new information is entered into MotorTraxx™.) From the ACCOUNTING OFFICE, go to GENERAL LEDGER. In GENERAL LEDGER, go to number 4. MAINTENANCE and choose number 2. END OF YEAR CLEARING. Verify that the date shown is 01/01/2011 (if your fiscal year starts on a date other than January 1, look for that date instead.) If everything to this point is correct, type the word "PROCEED" to begin the routine.
13. Any business transactions occurring this year (2010) that will be unknown until after the End Of Year has been completed, may be handled using General Journal entries dated the year they occurred. Bank account adjustments will be done as usual, using the dates the adjustments were made. If payroll checks are handwritten before the end of the year, but are not entered into MotorTraxx™ until after, a warning box will let you know that the checks are about to be posted into the prior year's books. Any transactions written into a prior year that affects income or expenses will also write to the Retained Earnings account for that year. REMEMBER: All invoices closed in the new year will appear in the records for the new year. Invoices, Restock Inventory, etc. cannot be postdated.
IF YOU FAIL TO RUN THE END OF YEAR CLOSING ON THE LAST DAY OF THE YEAR, EVERY TRANSACTION ENTERED DURING THE NEW FISCAL YEAR WILL ADD TO LAST YEAR'S G/L TOTALS. THIS WILL CREATE A PROBLEM THAT COULD BE EXPENSIVE TO CORRECT. WE REGRET THAT WE WILL HAVE TO CHARGE FOR ANY TIME SPENT TO CORRECT YOUR GENERAL LEDGER ERRORS DUE TO FAILURE TO CLOSE THE YEAR