It’s that time of the year again, the holiday rush is in and while we are busy crossing off everything in our holidays to-do list don’t forget to take care of your accounting checklist as well.
Create a budget
Assess where your company stands by utilizing the Budget vs Actual report. As early as the start of the last quarter of the financial year, it is recommended to start budgeting for the next year. Copying budgets is easy in NetSuite since a budget can be based on previous year by selecting Actuals from year in the Copy budgets page.
Take year-end inventory
Take physical inventory to ensure accurate inventory and asset records. Print out a physical inventory worksheet report. This report can be printed on a per subsidiary and per location basis as of a specific date. Perform your physical count and adjust any discrepancies through Adjust inventory page.
Beginning of the Year
Set up accounting and tax periods for the new financial year
Depending on your company policy, this can be performed even before the beginning of the new year. Accounting periods and tax periods are necessary to record new transactions as well as adjustments performed at the year such as revaluation and inter-company elimination which require reversal entries in the next period.
Ensure completeness of entries
- Check Accounts Receivable and Accounts Payable registers - Ensure that these are still legitimate meaning none of them have been paid. If any payments have been made for these then the transactions should no longer be included in the balance. Performing bank reconciliation will help in this step as well.
- Reconciliation - Request statements from your bank and upload it into NetSuite and perform reconciliation. This step ensures completeness of expenses and payments recorded.
- Inter-company - Utilize inter-company journals and check inter-company account detail report as well as the inter-company reconciliation report to ensure that amounts recorded are balanced between subsidiaries.
- Accruals - Ensure that all revenue recognition and reclassification entries have been performed correctly and completely. Take note that unapproved revenue journals from prior periods will be ignored if you proceed performing the process without approving them. Ensure that amortization and depreciation journals have been created as well.
Plan Closing tasks
NetSuite’s closing is automatic without the need to perform manual journals for closing nominal accounts to balance sheet accounts. You can use handy period-close checklist available to guide you through the steps that need to be performed to close the year. Set a time-line for your period close checklist and ensure that ensure process owners are aware of the time-line and their tasks. Ensure all necessary adjustments are entered before performing the steps indicated.
Prevent re-opening the books so that the financial statements do not change. Take note if the statements have been submitted to management, auditors or tax authorities before re-opening the period since re-opening may change the amounts that have been previously submitted to these authorities.
A good ending lays down the foundation for a wonderful beginning. Ensure to perform these steps to ensure a smooth closing process for your company. Enjoy the holidays and Happy new year!
Contact our certified NetSuite experts for assistance with year-end closing tasks: firstname.lastname@example.org or Call :408-899-4577.
Till next time