Closing the year

Key points to remember:

1. Closing the year is permanent: Closing the year is a permanent procedure. Make sure that you have a backup of your database prior to closing the year.

2. Keep your backup: After you make the backup of your database make sure that it is clearly labeled and secured where it will not be used.

3. The New Accounting Year: Before you close the prior year, you'll need to start entering January work. Make sure that you use period 13 for January, period 14 for February, etc.

4. Check with your Accountant: Review your financial statements carefully with your CPA prior to closing the year. This will allow you to make any necessary adjustments and run any required reports before the year is closed.

5. Checking Account balances: The better prepared you are for closing the year the easier it will be. Completing tasks early instead of delaying them will make your close year process quicker and manageable.

6. Posting all entries: All entries (Accounts Payable, Accounts Receivable, etc.) should be posted prior to closing the year, regardless of the year that they are in. You shouldn't close the database while you have unposted entries.

7. No one can use Clients & Profits during the close year process: When the close year procedure is running, no one should be using the Clients & Profits database. You should run the procedure overnight or on a weekend.

8. After closing the year: If you run the close year process in February and were working in period 14, after closing the year you would be working in period 2. Remember, Periods 13-24 (or in Classic 13-15) become period 1-12 (or in Classic 1-3) after closing the year.

9. Prior Year Adjustments: Adjustments can be made to your beginning balances if necessary. However, you should have enough time to enter all of your adjustments before running the close year procedure.