End of Year Procedures for The Financial Edge

It’s likely at or near that time of year again for many of you non-calendar year folks.  Blackbaud is here to help! There are some steps you can take to help streamline the end of year process and fly through your next audit. Below you will find a brief synopsis of what to do, and in what order.

1. Post all transactions to the General Ledger. There are two places this will need to be done.

• From the General Ledger, General Ledger Processing, Post Batches (which will allow you to post all sub ledgers from this one screen).
• Accounts Payable, Banks, Post Adjustments to General Ledger (to post your bank adjustments if you have the optional Cash Management module).

2. Verify Fund Balance/Net Asset Accounts.

• General Ledger, Configuration, Funds. Open each fund and verify a full account is listed beside “Net Assets Account:” (If just the fund is listed, your financial statements will likely be out of balance).

3. Create a new Fiscal Yearending 2013.

• General Ledger, Configuration, Fiscal Years, New Fiscal Year

4. Soft Closethe fiscal year ending 2012. This will prevent data entry to past periods.

• General Ledger, Configuration, Fiscal Years, open the Fiscal Year ending in 2012, check the box to indicate closed in each period.
• Soft closed periods can be reopened at any time to create necessary adjustments.

5. Fiscal Year Reporting: The most common four reports you will be running.

• General Ledger, Reports, Account reports
  • Trial Balance Report
  • General Ledger Report
• General Ledger, Reports, Financial Statements
  • Balance Sheet
  • Income Statement

6. Create end of year Audit Adjustments.

• Create a new Journal Codefor adjustments.
  • General Ledger, Configuration, Tables, Journal
• Enable the use of this new Journal Code for Journal Entry.
  • General Ledger, Configuration, Business Rules, Journal Entry, Allow these codes
• Reopen the closed fiscal period you will be posting to per step 4 above.
• Create and post Journal Entries.
  • General Ledger, Journal Entry, New Regular Batch

For additional information on end of year processes, we offer specialized training classes in a variety of related topics. In particular we have the advanced curriculum coined the “Audit Tool Belt.” You can find out more about our in-depth training by going to www.blackbaud.com/training, chatting online with training specialists at www.blackbaud.com, or by giving us a call at 800-443-9441

You can keep up with us on Twitter by following @bbsupport; we use the hashtag #bbfe when we discuss The Financial Edge. Take a look at our Twitter Guide for more information.