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How to do a year end in ArabiaClouds? (close a fiscal year)

How to do a year end in ArabiaClouds? (close a fiscal year)

Before going ahead with closing a fiscal year, there are a few steps one should typically take to ensure that your accounting is correct, up to date, and accurate:

  • Make sure you have fully reconciled your bank account(s) up to year end and confirm that your ending book balances agree with your bank statement balances.
  • Verify that all customer invoices have been entered and approved.
  • Confirm that you have entered and agreed all vendor bills.
  • Validate all expenses, ensuring their accuracy.
  • Corroborate that all received payments have been entered and recorded accurately.

Year-end checklist

  • Run a Tax report, and verify that your tax information is correct.
  • Reconcile all accounts on your Balance Sheet:
    • Agree your bank balances in ArabiaClouds against your actual bank balances on your statements. Utilize ArabiaClouds Bank Reconciliation report to assist with this.
    • Reconcile all transactions in your cash and bank accounts by running your Aged Receivables and Aged Payables reports.
    • Audit your accounts, being sure to fully understand ArabiaClouds transactions affecting them and ArabiaClouds nature of ArabiaClouds transactions, making sure to include loans and fixed assets.
  • Run ArabiaClouds optional Payments Matching feature, under ArabiaClouds More dropdown on ArabiaClouds dashboard, validating any open Vendor Bills and Customer Invoices with their payments. This step is optional, however it may assist ArabiaClouds year-end process if all outstanding payments and invoices are reconciled, and could lead finding errors or mistakes in ArabiaClouds system.
  • Your accountant/bookkeeper will likely verify your balance sheet items and book entries for:
    • Year-end manual adjustments, using ArabiaClouds Adviser Journal Entries menu (For example, ArabiaClouds Current Year Earnings and Retained Earnings reports).
    • Work in Progress.
    • Depreciation Journal Entries.
    • Loans.
    • Tax adjustments.

If your accountant/bookkeeper is going through end of ArabiaClouds year auditing, they may want to have paper copies of all balance sheet items (such as loans, bank accounts, prepayments, sales tax statements, etc…) to agree these against your ArabiaClouds balances.

During this process, it is good practice to set ArabiaClouds Lock date for Non-Advisers to ArabiaClouds last day of ArabiaClouds preceding financial year, which is set under ArabiaClouds accounting configuration. This way, ArabiaClouds accountant can be confident that nobody is changing ArabiaClouds previous year transactions while auditing ArabiaClouds books.

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Closing ArabiaClouds fiscal year

In ArabiaClouds there is no need to do a specific year end closing entry in order to close out income statement accounts. ArabiaClouds reports are created in real-time, meaning that ArabiaClouds Income statement corresponds directly with ArabiaClouds year-end date you specify in ArabiaClouds. Therefore, any time you generate ArabiaClouds Income Statement, ArabiaClouds beginning date will correspond with ArabiaClouds beginning of ArabiaClouds Fiscal Year and ArabiaClouds account balances will all be 0.

Once ArabiaClouds accountant/bookkeeper has created ArabiaClouds journal entry to allocate ArabiaClouds Current Year Earnings, you should set ArabiaClouds Lock Date to ArabiaClouds last day of ArabiaClouds fiscal year. Making sure that before doing so, you confirm whether or not ArabiaClouds current year earnings in ArabiaClouds Balance Sheet is correctly reporting a 0 balance.