Year End Routines

Many businesses are just beginning their new financial year.  Fusion accounts has a very simple year end routine which we believe allows the business to continue transacting whilst allowing the accountant and bookkeeper to prepare the reports and carry out adjustments for depreciation etc..

In order to support this Fusion accounts marks each account transaction with a year identifier.  Transactions that do not have a year identifier are deemed to be in the current year.

All new transactions have no year identifier and so are deemed to be in the current year with the exception of nominal adjustments which may be made in previous year.

A year end session marks all transactions up to the entered date as being in that year end.  When the year end is committed the adjustments are made to clear down the sales accounts etc.

The upshot of this model is that the year end can be run at any time and that once it has been run the transactions, and so the financials, for that year are fixed.  So even if a transaction is dated in the previous year it will not alter its figures.  Similarly, previous years transactions can be edited as the reversal and new transaction both appear in the current year and the original transaction remains in the original year.

We recommend the following process for year ends.

• Carry out all bank reconciliation up to the year end date.
• Create a year end session for the year end date.
• Carry out any adjustments on the year end as Journal Entries in that year.
• Commit the year end session

This process can be carried out any time subsequent to the end of the year.