When entering a new calendar year, businesses face the critical task of closing their books for the previous year. For organizations using an Enterprise Resource Planning platform, or ERP, this is not only about finalizing financial records. It is also about ensuring data accuracy and setting the stage for the coming year. Luckily, ERPs like NetSuite help set you up for success. Here are 9 tips to help when closing the month of your accounting year.
First, ensure your fiscal year and periods are set up correctly. Confirm that everyone involved in the process has the appropriate permissions to execute their tasks.
Next, complete all bank account and credit card reconciliations.
Before closing month of accounting year, check for unapproved or pending transactions and address those first. Also, apply any unapplied customer or vendor payments and credits. And resolve or close any unnecessary open work orders.
Before closing month of accounting year, start with a soft close to prevent new entries, while still allowing adjustments.
Verify that your accounts balance and align with expectations. Ensure revenues and expenses are categorized correctly. And don't forget to review AP and AR aging reports.
Post necessary adjustments for accruals, depreciation, and tax provisions. And adjust deferred revenue and expenses.
Ensure your data is securely back up and archived.
NetSuite automatically retains data, but exporting key reports is a good practice.
Use NetSuite’s Year-End Closing Checklist to confirm that Retained Earnings are updated and balances are rolled forward.
Share timelines, responsibilities, and updates with your team members to ensure everyone is aligned during the process.
Successfully closing the books at year-end is a vital process that ensures your business’s financial health and compliance with accounting standards.
By leveraging the full capabilities of NetSuite, you can streamline the process, minimize errors, and gain deeper insights into your company’s financial performance.
While it may seems daunting, careful preparation, proper reconciliation, and the use of best practices will help set the foundation for a smooth transition into the new year.
If you have any questions, please don't hesitate to contact us! Our helpful team would be happy to assist you.