Tax – end of year

End of Year Tax: KTHT

Print this page & use as a check list.

1. Finalise the Year
2. Reports
3. Collect existing documents For Accountant
4. Home Office Docs
5. Meet Accountant

1. Finalise the Year

In MoneyWorks there is not much that you have to do at the end of a financial year. The end of year roll-over is done automatically when you open the first period of the new year, and you can still enter information and print reports from the old year.

1.1 Sort out the Suspense account

This should be done monthly as part of the monthly reports and again as part of preparation for GST. Fix anything outstanding or make a note why there is money in the account, in the report to Accountant.

How to zero out the discrepancies.

Make a Journal entry with debits and credits as needed.

When the suspense account has credits. Enter suspense account as debit and drawing as credit
Suspense Credits are then transferred to Drawings

Do account enquiry & print

1.2 Bad Debts:
If you have bad debts that you want to write off, these need to be done before the end of the financial year. To write-off a bad debt, highlight the offending invoice in the Receivables list and choose Command>Adjustments>Write-off. You will be prompted for the account to write off to (you may need to set up a Bad Debts account if you don’t have one already).

1.3 Review any unposted transactions

Review any unposted transactions from that year. You need to ask yourself why are they there? Should they be deleted? You are not going to want to post these once you have given the results to your accountant; and once the accountant has finalised the accounts, you are not going to be able to close the year if there are unposted transactions in it. So they need to be tidied up.

1.4 Lock Period

Once all the outstanding transactions for old year are entered into MoneyWorks (and posted), the last period in that year SHOULD BE LOCKED (use the Open/Close Period command to do this). Locking the period means that you won’t be able to inadvertently enter additional transactions into the old financial year.

2. Reports

Print & put in the Box

Trial Balance:
Print the “Trial Balance” report from the first period of the old financial year to the last period of the new financial year. Remember it needs to be printed in landscape.

Profit and loss:
Print the “Profit & Loss for Year to Date” report as at the last period of the old financial year.

Balance sheet:
Print the “Balance sheet” report as at the end of the old financial year.

Ledger Printouts

  • Wages
  • PAYE
  • Entertainment

How to: Account Enquiries | Entered the appropriate account code | click on the Movements tab and set the period pop-up menus to be from the first period of the old financial year until the last period of the old financial year | Choose Print from the File menu| Set the report option to “Posted Movement by Period”.

2.7 Fixed Asset purchases and disposals:
Fixed assets are things like computers, cars, quality accounting software packages. There are a number of pre-supplied asset reports you can use for this (under Reports>General Ledger), but you’ll probably get a better list if you use the Account Enquiry command. Click the “Range of Accounts” option and set the Type pop-up to “Fixed Assets”. Then click the Movements tab, and continue as previously described.

2.8 Outstanding debtors and creditors:
Total outstanding debtors and creditors should agree with the general ledger totals. Use the Debtors and Creditors Reconciliation reports to show this.

2.9 Export to MYOB and burn to CD

3. Collect existing documents For Accountant

Put the following in a box ready to go to the Accountant and ready to store.

  • Bank reconciliation reports and associated bank statements
  • Global Plus Reconciliation documents
  • Cash Reconciliation
  • Receipts
  • Deposit slips
  • Paid Invoices
  • Merchant Credit Card slips and deposit notes
  • ACC statements
  • GST
  • CRT
  • PAYE
4. Home Office docs
These are in Walter’s Top right drawer

  • Gracefield Ave. Rates
  • Gracefield Ave. power
5. Meet Accountant

5.1 Drop off material for your accountant to look at the accounts.

5.2 Entering Updates from Accountant in MoneyWorks

The accountant will prepare the end of year adjustments (for things like depreciation),

Meet with Accountant to ensure MoneyWorks is in agreement with her books.

5.3 When done the period can be unlocked, the appropriate transactions recorded, and then (once everything has been completed), the period can be closed — closing is permanent, so it should only be done after the end of year adjustments have been entered. (use the Open/Close Period command to do this).