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Calendar Year End CloseThis list is provided as a tool to assist with closing your accounting system at calendar year end. As all systems are different, contact us before attempting any steps with which you are not familiar. We can provide a more specific list for many accounting packages. Some packages require both a fiscal and calendar close. Note: Most accounting packages clear data based on system set up options during year end processing. Check the software options before closing any periods. If you have any questions or concerns, ask first! Make a special backup before each module close! This list is in the typical closing order but may vary by package — some sections include items you can start on TODAY!
Payroll q
Order W-2 and W-4
forms. q
Order envelopes for the
employee copies of the W-2 forms. (Note: Envelopes often change along with the forms.) q
Obtain current payroll tax tables
from your software vendor. q Contact federal and state tax authorities regarding any tax changes for the new period. (Note: This is an important step to take during each period of the year.) q
Verify names, addresses, social
security numbers, for each of your employees. You must send a W2 to every
employee you paid during the year, even if they no longer work for you. q
Verify that the release of
software you are using handles the new W-2 forms. q
Complete all pay runs,
including manual checks and bonuses. q
Install year end tax update, if
required. q
Complete all Payroll month-end
and quarter-end procedures. q
Enter any non-cash benefits
paid to employees (for example personal use of company automobile). q
Make a backup. q
Verify W-2 and 1099-R form
information. Note: If you make
changes to the statement information, we recommend you make another backup. q
Print the W-2 forms and W-3
Transmittal form. q
Create a Magnetic Media file,
if required. q
Delete inactive employees, if
required. q
Archive inactive employee Human
Resources information (optional). q
Set up fiscal periods for the
new year,
if required. q
Close the calendar quarter and
calendar year in your Payroll module. q Install new year tax tables. q Review federal and state tax tables to confirm all tax rates, limits, and rules are correct. Note: Software tax table services rarely update all tax items so you will need to verify your system is properly updated for all taxes. (This includes federal and state withholding taxes, unemployment, and disability.) q
If you have not had a chance to
verify W2s before your first new year payroll, give us a call to help you set up a
separate W2 company so you can take additional time with these very important
documents! Accounts Payable q
Order all versions of the 1099
forms (1099-MISC is the most common but many businesses are required to file
others as well) and transmittals you require. q
Order envelopes for the
recipient copies of the 1099s.
(Note: Envelopes often change along with the forms.) q
Begin gathering completed W-9
forms on your 1099 vendors. In general, you must file a 1099 for any
non-corporation (sole-proprietors, partnerships, and some special corporations)
you paid more than $600 for non-merchandise goods (rent, consulting, etc.).
Current guidelines include filing requirements for some types of
corporations as well as some merchandise portions.
Consult the Internal Revenue Service’s filing regulations for specific
requirements. q
Post all
transactions for the calendar year. q Review transaction details for each vendor subject to a 1099 to determine the proper amount. q
Make a backup. q
Print 1099 forms. q
Close the calendar
year in your Accounts Payable module. q
If you have not had a chance to
verify 1099s before your first new year payables check run, give us a call to help
you set up a separate 1099 company so you can take additional time with
preparing these important tax documents. q
Make a final
backup. Accounts RECEIVABLEq Contact all sales tax authorities regarding any sales tax changes for the new period. (Note: This is an important step to take during each period of the year.) q Post all transactions for the period and complete month-end procedures. q
If finance charges are required
to print on your statements, follow your software provider’s instructions for
adding this information. q
Print customer statements.
Verify the finance charge information is accurate for the calendar year. q
Print and verify the Aged Trial
Balance and any other desired reports. q
Make a backup. q
Clear finance charges (if
required). q
Close the period and/or year. q Close the sales tax periods for
the year (if required). q
Make a final backup. q Enter any sales tax changes before processing new period transactions.
If your fiscal year is on a calendar year, you need to complete the fiscal year end checklist at the same time. Go to Fiscal Year End Checklist. |
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