Tips t Prepare fr Quarter-End and Year-End Melissa Wd Cnsultant What We ll Cver 1. Tying ut A/P 2. Tying ut A/R 3. Tying ut I/N 4. Wrk In Prgress 5. Managing Jbs and PMs 6. Quarterly Payrll 7. Clsing a Year
Tips t Prepare fr Quarter-End and Year-End Are Yur Financials Crrect? 1. D yu re A/P Aging, A/R Aging, and Inventry Jb Summary Reprt balances tie t yur Balance Sheet? a. Have yu dne an inventry cunt and updated balances? 2. Is yur Wrk in Prgress accurate? a. Are all yur csts, change rders, and cntracts up-t-date and psted? b. Has yur verhead/burden been analyzed and allcated? c. Are yu ver billed r under billed 3. Payrll Quarterly Reprts a. 941 b. State & Lcal c. SUTA i. Hw des this affect yur prfit? 4. Are yur bank statements recnciled? 5. D yu have t bk any accrual entries? a. Payrll b. WIP 6. Did yu purchase any equipment, fixed assets r real prperty this year? 7. Are all f yur payrll liabilities cleared ut? a. Was smething psted t an expense accunt that shuld have hit a liability accunt n the Balance Sheet? 8. Des yur jb cst tie ut t general ledger? a. G/L accunt jb cst settings b. Gtcha prgrams c. Jurnals jb cst setting d. Prcess reviews e. J/C t G/L query 9. Is all f yur Bad Debt written ff? a. A/P r A/R that yu wn t be paying r cllecting. 10. Clsing Perid t Prevent Any Entries 11. Year-End Prcessing 1. Clsing the Year 2. Creating the Year End Adjusting Entries / Jurnal Entry 1
Tying ut Accunts Payable Make sure that yu use the same As f dates and make sure ttals tie ut. 1. A/P Aging Reprt Chse Summary r Detail 2. Balance Sheet Disable the Accunts with Zer Balance checkbx. Enable the Shw Accunt Numbers checkbx. 2
A/P Ttals t Tie Out Balance Sheet 3
Tying ut Accunts Receivable Make sure that yu use the same As f dates and make sure ttals tie ut. A/R Cntract Receivables Reprt Summary Balance Sheet Disable the Accunts with Zer Balance Enable the Shw Accunt Numbers checkbx. 4
A/R Ttals Tie Out Balance Sheet 5
Tie ut Inventry Inventry Summary Reprt 6
Creating a Physical Cunt Wrksheet Entering Physical Cunts 7
Wrk In Prgress 5 Things that Change WIP 1. Jb Status (Inactive, Active, Clsed r Overhead) nly Active Jbs shuld shw n WIP 2. Cntract Amunt Have all Apprved Change Orders been entered? 3. Estimate/Budgets Are the Original Summary Estimated Csts Crrect a. Have yu entered all Estimated CO s t reflect Current Estimated Csts? 4. Are all Billings t Date Crrect and Psted? 5. Are all Csts t Date Crrect and Indirect Expense Allcated? Hw t Check if it is Crrect Are there any jbs that are severely ver r under billed? If s, lk t the 5 things abve and make sure they are crrect Are there any jbs that are shw ver 100% cmplete? If they are cmplete, yu need t d an estimated CO t make the estimate match the csts Exercise: Sample Estimated CO 8
Managing Yur Jbs and PMs Lk fr the negatives..then drill dwn fr details r get n the phne and cllect thse receivables. Wrk n adjusting cntracts with apprved COs, budgets (revised csts) with estimated Cs, r get jbs billed t crrect percent. If a jb shws mre than 100% cmplete and shuld be 100%, create an estimated change rder t make it match the csts t date. 9
Three Ways t d WIP in FOUNDATION 1. Custmize a WIP in FOUNDATION Pr Custmized Fast t set up and run Cn Calculate Earned Revenue fr Prir Perid, such as Previus r YTD (if yu need this, get an Excel WIP created) 2. Use FOUNDATION S Canned Over/Under Billing Reprt Pr Des the entry fr yu Cn Can t custmize the reprt Need t keep a cpy f the reprt t knw what the entry was, because it autmatically subtracts the current entry frm the prir entry and nly psts the difference. b c d e 3. Sample WIP in an Excel Query Pr Very few (if any) limitatins Autmated and easy t use Easy t send t a CPA in an Excel frmat Cn May need t hire a cnsultant t assist yu in creating/mdifying it 10
WIP Adjustments Chse a methd 1. Pst frm Over/Under Reprt (if using FOUNDATION S canned WIP Reprt) a. Pr b. Cn i. Des the entry fr yu i. Need t keep a cpy f the reprt t knw what the entry was, because it autmatically subtracts the current entry frm the prir entry and nly psts the difference. 2. Create a WIP Accrual Jurnal (if using a Custm WIP r Excel Query WIP) a. Pr i. Yu cntrl the entry ii. Yu have a gd audit trail iii. It will autmatically reverse itself ut the 1 st day f the next mnth (if jurnal is set up right) b. Cn i. Yu need t d the entry yurself 11
Quarterly Payrll The best reprts t run fr Quarterly Payrll Prcessing Payrll Wage and Tax Reprt This is a reprt that gives yu ttals (per perid) f everything that hits an emplyee s check all the way thrugh net pay, including but nt limited t the emplyer s prtin and cntributins. This reprt is a gd reprt t duble check prir t printing W2s. 12
Print 941 (3 things that it des) Make sure yu run this reprt based n date ranges (n check date). 1. Prints yur 941 frms. 2. Tells yu yur ttal payrll liability summary by date. 3. Psts yur jurnal entry t debit P/R liabilities and credit cash. 13
Summary 941 This frmat shw what yu shuld have paid fr the 941. This will shw summary by pay perid. It is a gd idea t lk at this in a date range t make sure that yu dn t miss any payments fr a crrectin r layff check. Pst the jurnal entry fr liability fr federal and FICA. This will debit liability and credit cash. 14
Running State & Lcal Taxes Des nt pst the jurnal entry. The entry will need t be entered manually. Lk at the Balance Sheet. Make sure liabilities are cleared each perid. Clsing Perids FOUNDATION allws yu t chse between ding a sft clse r a hard clse. A hard clse wuld be setting the cntrl files t Prevent A sft clse wuld be setting the cntrl files t Warn Mdify yur cntrl files. In the cntrl files fr A/P, A/R. I/N, P/R, E/Q, change the cntrl file settings t the Open perid. It is a gd idea t d this when yu clse a perid t prevent users frm making entries t it. Make sure that the security is set up s that users cannt change the cntrl file settings. Never use jurnal entries t fix these mdules. Rather use the prgrams in these mdule t make adjustments s the G/L will always tie ut t the mdule. Yu can repen a perid and make changes fairly easily by changing the settings, making the entry, and changing the settings back. 15
Clsing a Year Generating a year-end clse is easy. 1. Frm the Main Menu, g t General Ledger > Daily > Generate Year End Clse. 2. Enter a date range in the Fiscal Year and T fields. 3. In the Accunts t Clse fields, select yur Beginning Incme Statement accunt, Ending Incme Statement accunt, and Retained Earnings accunt. 4. Click n the Reprt tab. This will create a year-end jurnal entry fr yu t pst. Yu need t pst the entry, then g pen the Create G/L Jurnal Entry windw, pick the jurnal, and pst the entry. Make sure yu set yur cntrl file dates t Prevent nce yu are finished with the year-end entries. 16
Tying Out Jb Cst t G/L The ttal jb incme shuld tie t the ttal billed that perid. The ttal jb cst shuld tie t the ttal cst that perid Discrepancies usually ccur in payrll Run the G/L Histry fr direct jbs cst accunts (grup by jb) and cmpare it t jb cst and the billing t date summary in J/C Filtering & Reprting Tricks Filter by jb Filter by jurnal J/C t G/L Query Jb cst that hit G/L jurnal Indirect & G&A accunts that hit jbs Grup by jb Take nte f Gtcha prgrams. Gtcha prgrams are prgrams that may r may nt hit the J/C, G/L r bth, causing yur G/L and J/C t nt tie ut. They are as fllws: G/L Jurnals Can be set up t nt hit the J/C and G/L. D nt change settings n canned jurnals. Jb Jurnal Entry in J/C Des nt hit G/L Jb Transfer in J/C Des nt hit G/L Cash Histry Entry Des nt hit G/L Nte: Be aware f G/L Accunt Require Jb Csting settings. All P/R-related accunts n the Incme Statement need t be set up t require jb csting at minimum t minimize errrs in the J/C t G/L tie uts. 17