Year-End Bookkeeping Procedures

By |2021-07-08T16:06:10-05:00July 26th, 2019|Comments Off on Year-End Bookkeeping Procedures

Introduction

Confused about year-end procedures?

With all the new IRS rules for this year, we have provided detailed information so that you can ensure that you have made the correct changes to Employees Payroll information.

Please note, Total Office Manager does not have any specific Year-End Requirements. The information listed below is to be considered “recommendations” and should be treated as such. Please speak with appropriate office personnel regarding specific steps or information you should perform as a part of your business “year-end procedures”.

Year-End Checklist

Order Tax Forms – Be sure to do this early so that you have them when you are ready to print. You only need to order W2 (one for each employee) W3 (one for each EIN),  1099 (one for each Vendor), 1096 (one for each Company Tax ID). (http://www.dswebtoprint.com/aptora/)

Update to the latest version of Total Office Manager to make sure you have all 2010 tax tables. (12/31/20?? or before your first payroll in 2010) (Help | Check for Enhancements and Updates)

  • When possible, update to the latest version of our software.

  • Check your balance sheet for a “Rounding Adjustment” account and check your income statement for “Rounding”. If you have more $100 in rounding adjustments, please contact the Help Desk. Click here for more information.

  • Be sure that you do not have any Item Receipts that are not valid. This can happen if you enter an item receipt but do not use the Enter Bill for Received Item feature.

  • Reconcile all Bank and Credit Card accounts ending 12/31/20??. For good bookkeeping and the prevention of fraud, it is vital that a highly trusted person reconcile your bank and credit card accounts. Consider having an outside accounting firm perform this task. Please consider our sister company, RA Tax and Accounting. The president of Aptora (James R. Leichter) is a partner at this firm.

  • Take a physical inventory count and reconcile with the software, making any adjustments needed. You might consider using the Item Adjustments import option.

  • Pay all Sales Tax and Payroll Liabilities.

  • Be sure that your Pay Payroll Liabilities list does not contain payroll liabilities that have already been paid. This can happen when you write a check without using the Pay Payroll Liabilities form.
  • Be sure that your Pay Sales Tax list does not contain sales tax liabilities that have already been paid. This can happen when you write a check without using the Pay Sales Tax form.
  • Review, Print and Distribute W2 forms from Total Office Manager (Deadline to Employees 2/1/20??)

  • Review, Print and Mail copies of W2 & W3 forms to IRS (Deadline to mail is 3/1/20??)

  • Review, Print and Distribute 1099 forms from Total Office Manager (Deadline to Vendors 1/31/20??)

  • Review, Print and Mail copies of 1099 & 1096 to IRS (Deadline to mail is 2/28/20??)

  • Review and Print form 941 for 4th Quarter (Deadline is 1/31/20??)

  • Review and Print form 940 for 2009 (Deadline is 2/1/20??)

  • Back up your SQL  database for the end of the year for security purposes. To set up automatic backup, please see our knowledge base article. Click here

  • Set your Cutoff Date. Preferences | Cutoff Date | Company Preferences. (Transactions with a date equal to or prior to this date can not be added, deleted, or changed.). Optional: You may wish to set a “Warn if Transactions are” value. This feature can help prevent entering erroneous dates (such as 2220).

  • Call and make an appointment with your Accountant to go over any adjustments, depreciation, etc.

FAQ

Q: How do I move my Income and Expenses to the proper accounts to close out the year?

A: Total Office Manager does not require you to manually “close” your accounts at the end of the year. This task is automatically completed for you based on the month set up for your company’s “First Month of Tax Year”. To verify that you have selected the correct month for your fiscal year, select Company > Company Information from the main menu and select the ‘Other Information’ tab. When your computer reaches the first day of your first fiscal month, Total Office Manager knows to take the proper actions for the beginning of a New Year.

Q: How do I make changes to the information entered if it is in the wrong account, or how do I enter my depreciation?

A: To make account modifications or entries for depreciation in Total Office Manager you should make a Journal Entry. (Banking | Make Journal Entry). These Journal Entries should only be made after consulting with your Accountant or Tax Advisor.

Q: Can modifications be made to the program after the end of my fiscal year?

A: Yes, you can make changes to the program for either a past or future date. To ensure no one makes changes to past transactions, you can set a Cutoff Date in the program. To access this feature you must log in as the Administrator, and then from the main menu select Edit | Preferences and choose the ‘Cutoff Date’ tab. This will allow you to set a date, at which point no modifications can be made to accounting transactions that occurred prior to the date without the Administrative Password. (This feature is also handy to use on a monthly basis once you have “closed” your books for the month.)

Related Topics

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HVAC Electrical Plumbing Software

Aptora delivers a true All-In-One services software solution including CRM, accounting, payroll, inventory, vendors, sales, marketing, dispatch, flat rate pricing, and more. NO 3rd party plugins or integrations required. Created by contractors for contractors, we know what it takes to grow your services-based businesses.

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