Processing-sage-50-accounts-year-end-blog

Processing your Sage 50 Accounts Year End

In Business Management Software, Sage 50 by Andy Patterson

Reading Time: 5 minutes

It’s that time of year again – everyone clears their diary, gets ready for some overtime, takeaway menu on hand… you know what I’m talking about!

However you prepare for your financial year-end, we’ve got a few things that we think will make this process a bit easier for you in Sage 50.

Preparing for your Sage 50 year-end – a few things to consider

1. The first thing to do for year-end is to make sure all of your transactions have been posted for the year. This includes any prepayments, accruals or adjustments from your accountant. This will save time spent on adjustments later on down the line.

2. Let’s ensure all nominal codes are correct within the chart of accounts. We don’t want to close down a year only to find out we have balances brought forward on our TB for the new year! To ensure our Chart of accounts is correct, follow the steps below:

  • Click Nominal codes then Chart of accounts.
  • Select your CoA layout (normally indicated as default)
  • Click Check. This will run a validation check to ensure we aren’t overlapping or missing nominal codes
  • If you receive a message to say ‘No Errors Found’ then your CoA is fine to use for year-end and we can move to the next step.

3. Check your data – We should never process with errors in our data but doing so at year-end is especially disruptive.

  • Run a data check by clicking File then
  • Click Check Data
  • Once complete, if any errors appear, fix them by following this guide. If not, we’re ready for the next step!

4. Archive your data and take a snapshot of your accounts.

  • Click Tools then Period End
  • Next, click Archive Company
  • In here, add a description and folder name that you’re happy with – We’d suggest something obvious so you can easily identify why this archive was taken if you ever need to come back to it in the future
  • Click OK and let the archive be created and then click OK

5. The final step in your preparation is to run your reports. These can be any report(s) you like but we’d recommend the below reports as a minimum:

  • Profit and Loss for month 12 and your full year
  • Balance Sheet as above
  • Trial Balance

Running the year-end in Sage 50

So here we are, we’re ready to get the year-end rolled up. Before going into the actual process of running year-end in Sage 50 Accounts, there are a couple of recommendations we’d want to add to the process.

  • Make sure you run this process on the local machine/ server where the data is held. You can find out where the data is by looking at the data directory in the Support Homepage. You can get there by clicking Help and About. It will look something like this C:\ProgramData\Sage\Accounts\2021\Company.000\Accdata

  • Ensure all users are logged out – check by viewing the user list – Click Settings then User Management and Users

To process the Year End, we can do it two ways, as individual steps as detailed in Prepare your year-end or, via the year-end wizard. We would recommend the Wizard, so the steps below will take you through that, and will be familiar to those we’ve just looked at.

  1. Click Tools then Period End, and then click year-end.
  2. Click Check Data. If you have any data errors you can fix them using this guide. If there are no errors, Click Close.
  3. Click Check COA, then click OK, click Backup, click OK.
  4. Take a backup by clicking Backup and choosing your location and filename then click OK.
  5. We want an archive, so let’s click the tick-box next to Archive Location and then remember to choose your location and file name.
  6. If you use budgets, click the Budgets tick-box and choose your budget options.
  7. Make sure that the date of processing is the year you’re closing and if you wish to prevent any postings made on that date or prior (into the year we’re closing down and older) set a Lock date.
  8. Now we’re done, let’s run the process. Click Run Year End then click Yes once you’re happy the year we’re about to close is correct and click OKHINT – At this point, it may seem like not a lot is happening but there is. Don’t make the common mistake of clicking the program and making it appear like it’s crashed or go and close it via Task Manager, it will be running through the year-end routine.
  9. Once it has finished, choose how you want the output report produced (this is a year-end nominal summary) click OK, then click OK.

That’s it! Year-End is completed… almost!

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Post Year end routine

Before you get going with the new financial year, we’d recommend the following checks are carried out:

  • Check we’re now into the correct financial year – Click Settings and then Financial Year
  • Make sure there are no brought forward balances on your Profit and Loss codes – Click Nominal codes then Trial Balance. Preview the report with a period of Brought Forward from the drop-down list and click OK. The last nominal code on the report should be your retained earnings. A standard setup will mean this is 3200. If there is a balance on anything greater than your retained earnings, restore your backup from pre-year-end and check for Chart of Account errors and redo your year-end.

  • The final check is to make sure we have no errors or unwanted warnings. Go to File and click Click Check Data. Similar to the brought forward balances, if there are errors, you will need to restore your backup and redo your year-end process. If not, you’re good to go!!

Year End Checklist

As year-end can be a long process, you might come back to it in several stages. We’ve added a checklist below so you can keep track of where you’re up to.

Pre-year-end

  • Ensure all outstanding transactions are posted
  • Print copies of management reports

Year-End process

  • Click Tools, Period End, then click year-end.
  • Check your data.
  • Check your Chart of Accounts.
  • Back up your data.
  • Create an Archive
  • Setup Budgets (if applicable)
  • Check correct posting date for year-end
  • Enter a lock date (if applicable)
  • Run year-end
  • Select how you want to output the report to be produced

After the Year-End

  • Check the financial year setting
  • Check your brought forward Trial Balance
  • Check your data

You’ve done it!

Well done, you’ve made it through to the end! We know it can be a tough time of year for a lot of businesses, but hopefully, this helps ease the burden a little bit. If you’re looking for help around other Sage 50 processes you can download our free Sage 50 help guides. We also offer Sage 50 support where we boast no automated queues, phone first support and a helpful, friendly support team. If you have any questions about Sage 50 year-end or anything else, you can get in touch with us here.

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