In terms of best accounting practices and auditors' requirements, it is paramount that
the year end procedure is done correctly and upholds the industry standards and accounting principles.
To do the year end procedure, one needs to make sure that all necessary tasks for the previous year, for example 2020, have been completed.
Below are the steps that need to be followed in order to complete the year end procedure in Rise Accounting:
1. Go to Accounting and select Year end procedure.
2. Click create a new one.
3. The number field will be filled automatically
4. Enter the period you would like to close, for example December 2020, by clicking on the 3 dots in the date field corner. Then click on 2020 to show the 2020 months and select Dec 2020.
5. Under Operation Type, please select Expense Allocation.
6. Under Allocation Rules, click on the drop-down list and select show all.
7. Click create to create a new allocation rule.
8. The code will be filled automatically. Enter a description, for example: Close Income Statement Accounts. Enter the Date from which it should be effective, for example December 2020.
9. You can add the income statement accounts one by one or you can add them all at once. To do so click on More Actions and select Fill by Income Statement Financial Category.
10. All the income statement accounts should appear at the bottom.
11. Then click on the Destination tab and click Add to select the contra account which should be the Retained Income Account or Accumulated Income account.
12. Its weighted average should be 100.
13. Save and close to complete and then select the allocation rule.
14. Post and close to complete.
Once the above steps are followed, one needs to check the general ledgers as well as the trial balances to make sure it is correct.
If you would like to request a free trial for Rise Accounting and see for yourself how the End Year Procedure works, feel free to email email@example.com