late closing books

late closing books

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I have a client for whom i produce the y.e stats and monthly reporting.
Each year they don't finalise their accounts until literally the last minute because of delays around pension note and other provisions. consequently the accounting system doesn't clear down the p&l and correctly roll the b/f balance sheet balances. The current yr reports look a total nonesense because the prior yr has not closed.
As i see it i have 2 options.
option 1 (which i currently use) export the TB to excel, created extended tb with adjustments ro reflect y/e close.
option 2. post the y.e journals into prior year as best you can. run y/e routine. continue current yr reporting as normal. Then when prior y/e journals are finalised in month 9 (!) following y/e, then re-open last year and book the jnl dr/cr BS and cr/dr reserves.

Neither options are ideal but i ve not known any other clients to take so long to close the yearend.
can you think of any alternative options?

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By alattax
19th Sep 2012 21:27

I'd use option 2.

Complete the previous year as best you can, with as many final adjustments as possible,   close, and roll forward the balances.

The main disadvantage with this is having to make two sets of adjustments, once to the prior year closing, and again to the new year opening figures.

It depends on which software you use as to how easy this will be.

My preference is to use software which remains open for adjustments and amendments and doesn't require closing for month, or year end until you're ready.

 

 

   

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