Accounts Receivable Year End Close Out Procedures

The end of the year signals the end of the accounting cycle.  For small businesses this event creates the opportunity to generate meaningful information, reset critical metrics, establish tax and payroll periods, and plan for the New Year.  Without the information generated from these end of year procedures, business and their owners would not be able to make informed decisions and gauge the company’s performance. The company’s books must be closed before these can happen.

The End of Year Close process will prepare your company’s accounting system for the New Year and the new accounting period.  

This paper describes the necessary steps to perform Year-End processes in Cougar Mountain Software to close your business financial year.

These steps cover six Cougar Mountain Software modules;
  • Accounts Receivable (AR),
  • Inventory (IN),
  • Order Entry (OE),
  • Payroll (PR), 
  • Accounts Payable (AP), and
  • General Ledger (GL).
Please remember two important points; always perform proper backups of your system before beginning your close process and you should perform the GL close process last.

To perform a backup of your data, follow these instructions:  Open the Main Menu, click Options > Back Up Company > Back-up, check the Data check-box, then click OK.

These are the instructions for the End of Year process for Accounts Receivable:
1)    Backup all your data files and store them off-site or in a fireproof container for your security.
2)    Run all your Accounts Receivable reports and file them in a secure place for future reference.
3)    Print Customer Statements immediately before purging.
4)    Select Purge Open Items from the Period End Menu. NOTE: Purging Open Items permanently erases statement data. If you have both Open Item and Balance Forward type accounts, this step will have a different affect depending upon the AR code type:
a)    For Open Item type accounts, purging will remove all open items with a zero balance.
b)    For Balance Forward type accounts, purging will compact all statement detail into one balance forward amount.
5)    Enter a Customer and/or AR Code Range to purge. Double-click in the Start and End fields to activate the lookup feature. Also, choose the Date to purge up to.
6)    Click OK to begin purge, or Cancel to exit without purging.
7)    Select Reset YTD Customer Totals from the Period End Menu to clear and reset year-to-date customer totals. It is necessary to reset the accumulators to zero if you are keeping track of year to date customer balances. Select OK to process, or Cancel to exit without processing. This must be done before activity is posted in the New Year to provide accurate year-to-date balances.
8)    Purge History: This utility will remove all history data up through the date you specify.
a)    Select Period End from the Task Bar.
b)    Select Purge History from the pull-down menu.
c)    NOTE: Purging History is not required and is only recommended if you would like to increase available hard drive space.
d)    Enter a Date you wish to use for the purge. Any items dated before this date will be purged.
e)    Double-check the date that appears in the pop-up window. If it is correct, click Yes. If not, or if you wish to change the date or cancel, click No.

Inventory & Order Entry Close Out Procedures

Payroll, Accounts Payable and General Ledger Close Out Procedures

Share |

Tags: year end procedures, closing books, taxes, accounting cycle

For all blog posts click here

Blog Posts

Denali Payroll Saves Time

Posted on Tuesday, April 01, 2014 | 0 Comments
Here is a short video showing how Denali Payroll will save you time...


Financial Controls for Small Nonprofits

Posted on Tuesday, March 18, 2014 | 0 Comments

It is an unfortunate fact that nonprofits are just as much at risk of financial fraud as for-profit companies. Perhaps they’re even more vulnerable, because nonprofit employees typically share a common interest and have close relationships with co-workers. No one wants to believe someone they know and trust is secretly stealing money from the organization they believe in. Sadly, stories about nonprofit employees and volunteers embezzling money come up all too frequently in the media. For example, this story:


Why Nonprofits Should Avoid Spreadsheets

Posted on Monday, March 17, 2014 | 0 Comments

For-profit and nonprofit organizations rely on spreadsheets for a variety of tasks, but spreadsheets were not designed for accounting and present significant risks. Let’s look at the reasons you should not use spreadsheets for nonprofit accounting.


Denali Payroll Introduced to Beta Customers

Posted on Friday, March 14, 2014 | 0 Comments
Cougar Mountain Software releases the Denali Payroll accounting software to select customers for beta testing.


Tax Time? What Your Accountant Needs From You

Posted on Monday, March 03, 2014 | 0 Comments

Your accountant is getting crushed this tax season.  Want to make their day and get your businesses taxes on the top of their To-Do list?  Organize your business tax records.   Getting the right information to your accountant will be a smooth and painless process if you know what they need. 



Cougar Mountain has been making accounting software for over 30 years - our latest generation is called Denali.

Based in the Northwest United States, with on-site technical support.

Ideas and Feedback are always appreciated.

Follow us on FacebookTweet with us on TwitterGoogle+Watch our YouTube ChannelRead about us on LinkedInGive us your suggestions and ideas

Cougar Mountain Software Inc. | (800) 388-3038 | 7180 Potomac Dr. Boise ID 83704

© 2014 Cougar Mountain Software All Rights Reserved.

Live Help Software