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The year-end routine needn’t be a struggle. As with most things, it’s all in the preparation! Remember, there’s no need to process the year end on the last day of the financial year with Sage 200c. You can continue to post transactions into the new financial year until you’re ready to run the year end. Great! That makes the process more flexible and allows you more time to get it right. Just follow the preparation procedure closely and you’ll be skipping through the year end in no time at all.
Update your Accounts
- First and foremost, ensure the accounts are updated up to the end of the financial year. Post all day to day transactions and allocate as much as you can. You don’t have to allocate everything before the year end, but the more that can be allocated, the better.
- Post anything that you normally would as part of the period end routine, such as deferred postings.
- Revalue bank accounts in relation to any foreign currencies. This ensures the correct amounts are considered for the Profit & Loss and that the Balance Sheet reflects accurate bank amounts.
- Finally, post any correction journals that may have come up.
Clear the Disconnected Users
You’ll need to clear down your disconnected users before being able to run the year end:
From the Sage 200c menu go to Accounting System Manager > System Utilities > User Login Status. Or go to the settings cog in the top right-hand corner and select User Login Status.
Highlight each user and select Log Off at the bottom of the window.
It’s good practice to reconcile the Sales and Purchase Ledgers against the Nominal Ledger. You may very well already have this as part of the period end routine. Repeat the following steps for both the Sales Ledger and Purchase Ledger:
Run an aged debtors list and an aged creditors list.
Through the Accounting System Manager in the Sage 200c menu, go to System Utilities > Ledger Summaries and check that the balances agree with each respective aged debtors and creditors list.
If any of these do not balance, go through Accounting System Manager > System Utilities > Prove Balances (Ledger Summaries). Select the relevant ledger and re-run the report. Sum the total of the nominal ledger balance and the deferred postings for the aged debtors or creditors as relevant, which should balance the total of the aged debtors or creditors list.
Just in case any balance still doesn’t agree, here are some common points you may want to check:
- Have any journal entries been made to the control accounts?
- Are all the opening balances correct?
- Have entries been correctly assigned as debit or credit transactions?
Print Year End Reports
As well as the aged debtor and creditor reports, you will need to print a Trial Balance, Profit & Loss a Balance Sheet as a minimum. Your auditor or accountant may require other reports, so be sure to check before running the year end.
The financial statements can be found via Nominal Ledger > Reports > Financial Statements.
Close Accounting Periods
You will then need to close the accounting periods for the financial year.
Select Accounting System Manager > Maintain Accounting Periods from the Sage 200c menu. Select a period to close and click Change Period Status. You will need to repeat this for each period in each column until they are all closed.
Backup the Company Data
It’s vital to take a SQL backup of the company data at this point, just in case!
This needs to be done from the Server by an Administrator who has access to SQL Server Management Studio.
Make sure all users have exited Sage 200c before running a backup and ensure that other users remain out of the system until the year end process is completed.
Check Nominal Accounts are Correctly Assigned to P&L
Within the Nominal Ledger list view, add the column Report Type (right-click > Columns). It’s best to check that accounts are correctly assigned to the Profit & Loss and Balance Sheet to ensure accurate reporting. Remember, accounts listed as Profit & Loss will be moved to a Retained Earnings account when the year end is run.
Go through Nominal Ledger > Utilities > Ledger Setup > Ledger Settings. This brings up the Nominal Ledger Settings window. Select the Defaults tab and ensure the Archive transactions after this period box is ticked. Previous year transactions will then be stored in Historical.
And that’s it! You should be ready to run the year end. Following the steps in this blog should ensure your end runs smoothly. If you’d like to find out more about how Sage 200c can improve your year end routine, get in touch with a member of our team. You can also check out some Year End FAQs here.