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Running your Year End Smoothly with Sage Financials

In Sage Financials, Sage Live by Andrew Jones

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Here we are again, the financial year end. Now to be fair, it’s not exactly a festive occasion that everyone looks forward to with gleeful excitement and anticipation.  At the very least, it shouldn’t be a strenuous task that keeps you up at night. Luckily, with Sage Financials, it needn’t be. Brilliant!

This blog will set out the basic processes for performing the year end routine in Sage Financials. Now, of course, each Sage product has a different year end process, with Sage Financials being no exception. However, what is the same irrespective of which product you are using, is the need to make sure your accounts are up to date. On top of this, make sure any information required for statuary submissions and reporting is obtained before moving into a new financial year.

Timing is Key

With Sage Financials, you are not obligated to run the year end on or the near the date when the current year ends. Having this luxury gives you the time to get into the most ideal position possible. Ensure you post as many transactions for the current year as possible and have completed all other year end tasks within your routine.

Posting to Future Periods

There’s no need to run the year end before posting into a future period. Even better, Sage Financials will automatically create the fiscal periods when you post a transaction in a future period. However, you may very well be greeted by the following error message:

Not to worry, this is just to prevent any accidental postings in a future closed period. To get past this, follow these steps:

  1. In the Configuration tab, select Transaction Types.
  2. Select the relevant transaction type. You may have been trying to post a sales invoice, for example.
  3. In the Information section, edit Automatic Posting Date For Closed Period clearing the tick box.
  4. Save the changes.

You’ll now be able to post the transaction. You may want to reapply the Automatic Posting Date For Closed Period afterward to prevent accidental future postings.

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Be Prepared

Not to sound like a broken record, but correct preparation will make running the year end a much simpler process. Check with your accountant or auditor to understand exactly what tasks to complete and reports to obtain. Here’s what you need to do as a minimum:

Update your Accounts

  • First and foremost, you’ll need to ensure your accounts are updated up to the end of the financial year. Post all your 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, like accruals and prepayments.
  • 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.

Print Year End Reports

As a general rule of thumb, you will need to print a Trial Balance, Profit & Loss, and Balance Sheet as a minimum. Your auditor or accountant may require other reports, so be sure to check with them before running the year end.

Run the Year End

Through the Configuration tab, select Companies and click the drop-down arrow towards the right of the company that you’re running the year end for. From there, select Adjustment Process. This will open the year end wizard:

  1. Check that you’ve selected the correct financial year by clicking the dropdown in the top right-hand corner.
  2. Click Check to see if there are any unposted transactions and journals. You can review any unposted journals by selecting View List. It’s a good idea to post as many of these as possible before running the year end.
  3. Provisionally close the financial year so you can check the year end reports. Click Cancel to if you need to make any changes.
  4. When you have checked the balance of the accounts and year end ledger entries, click To Confirm towards the right of the window.
  5. When you’re happy with everything, select Run.

Conclusion

Once the process has been run, you will no longer be able to post transactions into that period. You can, however, undo a completed year end so long as you haven’t closed the subsequent financial year. If you would like to find out more about Sage Financials and how the system could benefit your business, get in touch with a member of the team who will be happy to help.

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