Know the Knowledgebase: Closing A Reconciled Accounting Period

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Knowledgebase

Getting ready to close out FY2014? Once your reports have been reconciled and the accounting year has been finalized, the procedures listed below will lock down the period and ensure only authorized users are able to make changes.

I. Verify that all reports for the period are correct:

The procedure to confirm accounting reports vary from company to company. Typically, financial reports such as the Balance Sheet and Profit & Loss are reviewed. Between these two reports, the activity and balance of every general ledger is captured.

Often, the company’s accountant requests certain financial reports and may also request supporting documents to verify and close the accounting year. Some businesses populate financial reports for each property while others only report on the property management company’s finances.

You may receive a request from your accountant (or owner’s accountant) to adjust some data and/or to enter an adjusting journal entry before the year can be considered reconciled and closed.

II. Select a close setting:

Default accounting close settings can be established in system preferences and individual properties can either use this default or have a unique accounting close setting.

For instructions on how to establish a default or property accounting close setting and for a description and example of each option, see Knowledgebase article 229492.

III. Modify user permissions:

Once an accounting close date has been established, it is important to prevent unauthorized users from modifying the final accounting reports of the closed year. Identify which users are authorized to enter new or change existing transactions within the closed period and update user permissions accordingly.

Users who should not be able to change a closed accounting period:

  1. Go to File > Administration > Manage Users.
  2. Select the user from the list.
  3. Expand the Setup group and disable (uncheck) Override accounting close date.
  4. Click Save.
  5. Repeat steps 2-4 for each additional user.

If the user is assigned to a role and the role includes permission to override the accounting close date, update the role from the Manage Users form:

  1. Expand the Roles folder.
  2. Select the role from the list.
  3. Expand the Setting group and disable (uncheck) Override accounting close date.
  4. Click Save.
  5. Repeat steps 2-4 for each additional role.

Users who should be able to change a closed accounting period:

  1. Go to File > Administration > Manage Users.
  2. Select the user from the list.
  3. Expand the Setup group and enable (check) Override accounting close date.
  4. Click Save.
  5. Repeat steps 2-4 for each additional user.

IV.Review Close Settings:

Preparing for an accounting close is a good time to review existing close settings. Processing NSFs and voided checks through reversing entries leaves payments and checks in their original accounting period while allowing the user to specify a date in the current accounting period for which to reverse the NSF or void.

To use reversing entries for NSF payments and voided checks:

  1. Go to File > Administration > System Preferences.
  2. Scroll to the Accounting Close group and select Close Settings.
  3. Enable (check) Void checks using reversing entries instead of zeroing the check and Process NSF payments through reversing entries.
  4. Click Apply and OK.

REQUIREMENTS / PERMISSIONS

Go to File > Administration > Manage Users:

To modify user permissions:

  • System group: View and Edit Manage all users and privileges

To review/change close settings:

  • System group: View and Edit Administration items
  • Properties group: Enable (check) the appropriate Properties

This article can also be viewed within the Knowledgebase. To find other articles about importing data into Rent Manager, go to the Knowledgebase and search the term account close.