year end

Article Dean Dorton

“I Hate January! My Dynamics GP Year End Close Is So Hard”

Let me start by saying congratulations! You made it through another year-end closing. You made it through another set of those wonderful techknowledge documents Microsoft updates every year.  We plod through numerous module closes in order to “start over” in the new year when all we really want to do is to keep working.  We download the techknowledge articles, make sure we have good, restorable backups, lots of coffee and caffeine and we begin. It’s what we have to do, right? It’s what EVERYONE does, right?

Wrong! Your year end can be one simple step

Traditional accounting systems have long held the belief that everything must have procedures and that things that are rigid are better for us. Hah! Is that true or were they just telling us that because that was the best THEY could do?
 

Have you ever wondered:
 

  • Where is it written that we have to close accounts payable every year in order to print 1099’s correctly?
  • Why shouldn’t the accounting software track it for you regardless of when you click some buttons?
  • Why can’t we get a balance sheet with accurate amounts BEFORE we complete some elaborate processes?

 

“Can I shorten my Dynamics GP close and love January again?” 
 

Well, unfortunately, Microsoft Dynamics GP has a precise set of steps that MUST be done in order to close a year.  For those that are on
Dynamics GP, the procedures are common.  That’s not to say they are easy:  rather they are to be expected.
 

What if I told you there was a better way? A way that does not have eight different tech knowledge articles with up to 25 steps a piece? A way that let you run your balance sheet for January even though you haven’t “closed” December yet? A way that lets you be an accountant or a controller or a CFO and not just a button pusher!
 

Take a look at the modules that potentially need to be closed in order to complete your year end with GP:
 

  • Inventory
  • Purchase Order Processing
  • Receivables Management (Fiscal Year and Calendar Year)
  • Payables Management (Fiscal Year and Calendar Year)
  • Fixed Assets
  • General Ledger

 

Granted, everyone does not use all the modules and some modules are not severely affected by late or nonexistent closes.  However, you need to know what the effects are of not closing AP in order to decide if you want to close them.  Why put up with that hassle?
 

Intacct has a one step year end close process!
 

Now let’s look at what needs to be done in Intacct to close a year. Go to “General Ledger”and “Close Books.”  In that window, a period is selected that you want to close and you hit “Ok.”  That’s it.  No backups. No scripts to run! No procedures to check off.  No techknowledges to print.  Just go to the place that says, “Close Books” and close through the period that is applicable.  How cool is that?
 

One step. One single step! And a lot more features.
 

Both Microsoft Dynamics GP and Intacct have a defined process for closing your fiscal year.  The difference is that Dynamics GP has a six- to eight-step process.  Intacct has a one-step process. Which one sounds better to you?
 

The question remains, though, is a one-step year end close enough to make you buy Intacct?  Probably not. But, when you add in tons of other features like dimensions, custom fields, Intacct Collaborate and very robust financial reporting, not only will you save time and lots of headaches at year end, but you’ll save time and effort all year long!
 

Now is the time to look at Intacct so you can stop the madness of closing your Dynamics GP year end!  Contact us to get time back and stop hating January by switching to Intacct!
 
 

Article Dean Dorton

Every year we receive numerous questions year-end closing in Microsoft Dynamics GP, so we want to help you prepare now for a smooth year-end close process in Dynamics GP! The process for Dynamics GP year-end is not as complicated as it was five years ago, but preparation still helps make your day go better.

The following year-end close resources have been compiled by Massey Consulting so that you do not have to search far and wide for them. Complete the modular closes in the order they are listed below. Please don’t hesitate to contact us for additional help or information.

Dynamics GP Year End Resources

Year-end closing procedures for Inventory Control in Microsoft Dynamics GP

This article discusses how to close the year and how to prepare your inventory records for the new fiscal year in Inventory Control in Microsoft Dynamics GP.

Year-end closing procedures for Receivables Management in Microsoft Dynamics GP

This article contains checklists for the year-end closing process in Receivables Management. It also contains detailed information for each step in the year-end closing process.

Year-end closing procedures for Payables Management in Microsoft Dynamics GP

This article describes the recommended year-end closing procedures for the Payables Management module.

Year-end closing procedures for Fixed Asset Management in Microsoft Dynamics GP

This document outlines the recommended year-end closing procedures for Fixed Asset Management in Microsoft Dynamics. This article includes a checklist of the steps that you must follow to complete these procedures.

Year-end closing Procedures for Analytical Accounting in Microsoft Dynamics GP

There is not a ‘separate’ year-end close procedure for Analytical Accounting. The steps in this article will assist to check your data prior to doing the GL year-end close process to check for AA data that may cause errors during the GL year-end close process. This article will also show you how to set up the AA dimensions to have a Balance Brought Forward entry created in the new year per dimension if desired. Steps are also given on how to move historical data to history.

Year-end closing procedures for General Ledger in Microsoft Dynamics GP
This article outlines the recommended year-end closing procedures for General Ledger. It contains a checklist of steps and detailed instructions for each step.

Year-end closing procedures for US Payroll in Microsoft Dynamics GP
This document outlines the recommended year-end closing procedures for Microsoft Dynamics GP Payroll.

Thank you for reading our post and please contact us if you have any questions!

Article Dean Dorton

With the year-end around the corner, your heart is probably already racing in anticipation of all the tasks ahead. I know you’ll be ok and you’ll finish everything on time, but here are a few things that you can start doing now to make your life easier in January.

Prepare for 1099 Printing

It doesn’t matter when your fiscal year ends, you must print and mail the calendar year 1099 forms by January 31.

You’ll also have to file all 1099s with the IRS. Be aware the filing date changed this year! If you’re filing 1099-Misc with amounts in Box 7: Nonemployee Compensation—and most likely you are–the new filing deadline is January 31. If you don’t have amounts in Box 7, then the deadline is still February 28th for paper filing or March 31 for electronic filing.

To get ahead of the game you can run a preliminary 1099 report and review it to make sure all your 1099 vendors are set up as such in your system and their payable invoices are marked as 1099 transactions.

Prepare for W2 Printing

You also have to print and mail Wage and Tax Statements (W-2 form) to all your employees by January 31st and file the forms with the Social Security Administration by the same date. The new due date of January 31st applies to W2s for both paper and electronic filing.

To prepare for the W2 printing process, make sure you have all your workers classified correctly. Sometimes workers are classified as independent consultants when they are really employees and this is important because employees are issued a W-2 form while independent consultants are issued a 1099 form.

In addition, check your Employee’s Withholding Allowance Certificates (W-4 forms). Make sure you have one on file for each employee and that they show current employee information including marital status, a number of dependents and other tax related information.

Start gathering information for the auditors

Another task that may fall in your lap when you are working on year-end is preparing for the annual audit. To get a jump start ask the auditors for a to-do list so you can gather as many documents as you can now.

One thing the auditors will check is that all the sub ledgers match the trial balance. Check this before you close the books. A mismatch will raise a lot of questions from the auditors and create a ton of additional work for you. Now is the time to reconcile your accounts receivable and accounts payable aging reports against the corresponding balances in your trial balance. Do the same with every sub ledger.
And since the auditors will most likely ask you for testing samples, ask them if you can have the requirements now. If you start pulling invoices and payroll files for months that are already closed, you’ll only have to extract a couple of months’ worth of data in January.

Install and Test Software Updates for Year-End

If you have on-premise accounting or payroll solutions, you should install and test all year-end related software updates as soon as possible. But if you have a cloud accounting solution like Intacct this is not a reason to be concerned. The team of experts at Intacct will make all changes, test them and install them for you.

Also, with Intacct, you have custom fields that allow you to organize and sort transactions for analysis. You can also upload external or complex journal entries. And Intacct dashboards and standard and custom reports reduce the time you spend producing reports and answering questions.

Contact us so we can give you more tips to prepare for year end and show you how Intacct can save you a lot of time in the process.