It never fails: you dive into the year-end accounting only to stumble upon some unexpected hiccups that only draw the process out. At some point in the year, someone on the team made a mistake - we’re all human! To do your year-end though, these issues need to be sorted out. Two of the issues we see regularly are GL accounts not set up properly or needing to adjust 1099 codes or amounts. If any of these are not handled properly, they can cause a lot of headaches when trying to close the year. We're going to guide you through correcting these mishaps in your Sage 300 software so you can start the new year worry-free.
During the year-end accounting, some companies discover that certain GL accounts were incorrectly set up using the wrong Account Type. For instance, if Income Statement accounts were set up as Balance Sheet accounts, these accounts would not close to Retained Earnings after running Create New Year. In other words, the accounts would still have a beginning balance in the new year.
If you find yourself in that situation, here’s how to resolve it:
Now, it's critical that you don't run the Create New Year function again. The system will recognize the entry is posted to a prior year and will update the Retained Earnings account. That aside, following these steps will correct any mislabeled Account Types and get your year-end accounting process back on track.
At some point in your year-end accounting process, you might find the 1099 codes or amounts you’ve recorded for a vendor need to be edited or adjusted.
To make your adjustments, use the following steps:
Since these forms are used to report income your business has paid to vendors, contractors, or other non-employees, they need to be correct for close. The simplest errors could lead to compliance issues, possibly strain relationships with your vendors, and even lead to legal consequences, none of which you want to deal with on top of your year-end closing process.
Discovering blunders at year-end close can be annoying, but they're easily mended. To avoid issues in the future, check out our other year end blog that lists 3 Ways to Master Year-End Accounting Prep or use our Sage 300 Year End Checklist. Thankfully, Sage 300 has everything in place to make your year-end accounting seamless, right down to helping you find and fix any mistakes made throughout the prior year. Should you have further questions, we're here for you. Enjoy the year-end closing process as much as possible, trusting you've set yourself up for success and are ready to start the new year on the right foot.