Both professionally and personally speaking, the end of the year is a time to think about ending well and starting fresh in 2015. In order to end well as a company, it’s necessary to be thinking about, planning, and executing your end-of-year closing processes. Your enterprise resources planning (ERP) system needs a year-end closing to give your business the fresh start it needs in the new fiscal year and the peace of mind to know that all records and data have been properly dealt with. In order to be successful in ending 2014 well and starting 2015 off right, consider the following ERP year-end checklist for tips on closing the year out with ease and accuracy.
The “5 Ps” for ERP Year-end Closing Success:
- Prepare- Back up your data and get files ready
Backing up your ERP software system and business data is extremely important and is a necessity before beginning any year end process. Schedule for backups ahead of time and make sure they get posted on the company calendar. Make sure your IT staff is available during the scheduled backup times just in case they are needed. You will also need to ensure that you have enough hard drive space for all of the backups you need to perform. Also, be sure to test the back up to ensure the data is all present and readable. After you’ve backed up your system, you need to start preparing all of your files for year-end.
- Preview- Check data retention settings and physical inventory
Depending on the version you are using for your ERP, your historical data should be retained. It is still a good idea to review your module and system settings so no data is lost during year-end closing. Be sure to check your General Ledger to see how long your system history is set up to be retained. Make changes as needed to preserve the data’s time frame of availability. When it comes to inventory, account for all products before the end of the year.
- Print- Make hard copies of important statements
Print any year-end payroll and financial statements that are required. The most common statements include the Detailed Final Balance Report, Balance Sheet, Profit and Loss Statement, Statement of Cash Flows, and Statement of Retained Earnings.
- Plan- Develop a year-end strategy and timeline as a team and reconcile payroll
You need to develop a holiday strategy for accomplishing your year-end processes that takes employee vacation time into account. Make sure your staff is on the same page long before year-end actually begins, and be sure this is a time when staff members will be around for it. Also, you’ll need to plan on closing out payroll before the end of the calendar year. Reconcile payroll tax reports to the General Ledger as soon as possible so you have time to catch errors and avoid filing payroll tax return amendments.
- Perform- Do the year-end closing procedures
Once you have prepared, previewed, printed, and planned sufficiently, it is time to carry out the year-end closing processes.
If you have any questions regarding year-end or would like some assistance, contact us today. We’re here to help you finish strong and start the new year well.