It’s that time of year again. Time for holiday parties, gift exchanges, and visiting with family and friends. It’s also time to prepare for closing your year in your accounting software. This is your most important end-of-year financial task.
Properly closing your books helps you avoid posting a transaction in the wrong year, which, as you can imagine, can have a serious impact on your future accounting and taxes. Closing your books also allows you to accurately show your firm’s financial activities for the year and start building fresh reports for the new year. Closing your firm’s books at the end of the year is a pretty standard task, and if you’re using Perfect Practice, the process becomes even easier.
First, you need to make sure that your working trial balance is in balance. Your debits and credits must be equal. Next, you want to make sure that your year to date income on your balance sheet and your total income on your income statement are equal. At this time, you will also make sure that your trust account debits equal your trust account credits. Perfect Practice has the reports you will need to accomplish this ready at the click of a button.
Once you have verified that all of your accounts are in balance, you can close your year with just a couple of clicks. Perfect Practice cannot be fooled like some other accounting products. You must make sure that your numbers are correct in order to move on providing for accurate reporting of your firm’s financial activity.
Although most people would like to NOT have to deal with tying up your financial ends during this festive time of year, Perfect Practice makes this all too important task seamless so you can concentrate on your more enjoyable activities.
In preparation for your firm’s end-of-year close, Perfect Practice has hosted, and posted, a free webinar on our year-end close process. Please feel free to watch at your leisure!
Happy Holidays to you and yours from your Perfect Practice family!!