This article contains general guidelines for performing End of Year processes in your BMS system. A PDF is also attached containing all steps.
The processes listed below for BMS End of Year include:
- Preparation & Clean Up
- Reconciliations
- Tax Prep
- Last Day of the Year
- Close of Current Year
Prevent Merging of Years
Invoicing
- Invoice all completed jobs
- Work in Process Costs from JC
- Open Order Screen Review
- Open Order Report – look for shipped lines
- Print Open PO Report to Excel
- Sort by Amount Received
- Sort by Estimated Arrival Date
- Close any POs that need to be closed
Inventory
- Inventory Purge
- Perform physical inventory/cycle count
- Make necessary adjustments
- Audit report adjustments done?
Accounts Payable
- Print AP Open Invoice Listing to Excel
- Sort by due date – oldest to newest
- Look for small balances
- Delete obsolete invoices
- Print Receiving Report by Product Type (AP Not Invoiced) and research older Received PO’s
1099 Preparation
- Print AP Vendor Listing to Excel
- Sort by Vendor Type
- Installers = SUB
- Other 1099 vendors (rent, interest, dividend, etc.) have Vendor Type
- Do all 1099 recipients have SS/FED ID #?
Accounts Receivable
- Print A/R Aging Standard Report
- Look for zero balances
- Look for small balances
- Look for noncollectable accounts
Balance Sheet Reconciliation
- Clear Invoice Register and Post Journals
- Trial Balance – in balance?
- A/P, A/R, Customer Deposit Agings match G/L?
- Installer Listing match Retainage & Installer Loans?
- Reconcile other balance sheet items
- Bank reconciliation zero to G/L
- Review other balance sheet accounts for accuracy
Last Day of the Year--December 31st
- Clear Invoice Register and Post Journals
- Regular Month End functions (see Month End Checklist)
- Change Default Posting Period to 1 (Disregard if Date Driven GL is set up)
- Save reports to PDF or Print
After Last Customer Invoice
- Print Work in Process Costs from JC to Excel and save
- Print A/R Aging As of 12/31/current year and compare to Trial Balance G/L for A/R
- (Date Driven) Change Allow Posting Period Sales Processing and A/R to Period 1 next year -- see right side of screenshot below:
After Last A/P Invoice
- Print A/P Aging As of 12/31/CY (current year) and compare to Trial Balance G/L for A/P
- (Date Driven) Change Allow Posting Period Accounts Payable to January next year
Reconcile Inventory
- Trial Balance + Receiving Report by Product Type (A/P Not Invoiced) + Audit Report = Inventory Valuation
- Make Journal Entries to make G/L match Inventory Valuation
- (Date Driven) Change Allow Posting Inventory to January next year
Reconcile Bank and Credit Cards
- Zero balance to G/L
- (Date Driven) Change Allow Posting to Cash Receipts and Cash Disbursements to January next year
Print 1099’s
- Print 1099’s to plain paper
- Verify company’s legal name, address, phone number and FED ID are correct
- Email support@broadlume.com to correct
- Print Vendor History by G/L Account COGS Labor and compare to 1099
Tax Prep
Once financials are given to the CPA for tax preparation:
- Hard close through period 12 in current year
- Period 13 is to remain open for CPA adjustments
After Taxes are Filed
- Enter CPA adjustments into Period 13
- Make journal entries in BMS to match CPA trial balance
- Verify BMS trial balance matches CPA trial balance
- CLOSE 20CY in BMS
- Reclassify current earnings to retained earnings
- Journal Entry Period 1 20CY
- Adjust Distributions to Retained Earnings -- this reduces Retained Earnings
- Journal Entry Period 1 20CY, if instructed by CPA
Questions?
Please contact BMS Support at support@broadlume.com