Planning a successful year-end is made possible by successful month-end closes, meaning that the chances of having a successful year-end close go up dramatically when a month-end close is planned and executed well. However, even if a month-end close isn’t done well, you can still true it up to start out with a better 2015 (as you’ll see later in this post).
Here are the top three closing challenges we see with clients:
- Journal entries to system accounts
- Poor cutoff procedures and/or no periodic reconciliation of key accounts and reports
- Poor planning for period/year-end cutoff
We’re going to discuss these closing challenges in more detail during our Epicor Year-End Webinar (conveniently scheduled for two different times–December 4 and December 9–to accommodate your schedule), but we do have a few additional tips that can help your year-end close be successful:
- Create a checklist (or use ours) that you can go through each month to make sure each task is completed monthly; this can either be a mental checklist or something more formal requiring a signoff.
- Scheduling a reconciliation to run during the middle of the night on the last day of the month will help the year-end process run more smoothly.
- Inventory/WIP Reconciliation reports should become your best friend within Epicor; we recommend printing this at least once a week, though unusual transactions may be printed more often.
- When the final period of the fiscal year is closed, revenue and expense accounts will zero out to Retained Earnings automatically
- The Closed checkbox can be disabled for any previously closed periods and additional transactions posted. Additional transactions to revenue and expense accounts in the final period zero out to Retained Earnings with no further action required.
- Opening balances will roll to the next year automatically if this option is selected in Book Maintenance
- If “Auto update future balances” is not selected in Book Maintenance, then “Transfer Opening Balances to Next Year” must be executed. Once executed, balances are updated automatically.