Year End Rollover

by Elizabeth
(Brisbane)

Year End Rollover

Year End Rollover

What happens when an end of year rollover is done in an accounting package?

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Aug 24, 2023
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by: BB

An end-of-year rollover in an accounting package marks the completion of one fiscal year and the beginning of the next. Here's what generally happens:

Closing Temporary Accounts: All temporary accounts such as revenue, expenses, and dividends or withdrawals are closed to a permanent account, often retained earnings. This zeroes out these accounts for the new year.

Transferring Retained Earnings: Net income (or loss) calculated from revenue and expenses is transferred to the retained earnings account. This reflects the accumulated profits or losses of the company over time.

Adjusting Balance Sheet Accounts: Permanent or real accounts like assets, liabilities, and equity continue into the next fiscal year without any changes.

Creating New Periods: New accounting periods are created for the upcoming fiscal year, allowing for the entry of new transactions.

Archiving Data: Depending on the software, the previous year's data may be archived. This keeps the information accessible but separates it from the current year's transactions.

Generating Reports: Year-end reports are often generated at this time, including the balance sheet, income statement, and possibly tax-related documents.

Addressing Outstanding Items: This is an opportunity to reconcile any outstanding items, make necessary adjustments, and ensure that everything aligns with tax documents and regulatory requirements.

It's vital to have a clear understanding of the specific procedures and requirements in the particular accounting package and the jurisdiction in which the company operates, as practices might differ.
May 26, 2018
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by: Stephanie

Thank you for your question about what happens when a end of year rollover is done in an accounting package.

In short, when rolling over a company file to a new financial year, the closed and reconciled entries from the previous financial year are purged from the database.

This in turn results in a decrease of the file size and an increase in software performance.

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Prepare For End of Fiscal Year

by Tom MacArthur
(Saginaw MI)

Saginaw Unity Club

Saginaw Unity Club

We have a new Treasurer bookkeeper, and I am a new president of a small 501c3 non-profit.

This clause shown below is in our bylaws and it seems the past treasure has neglected to perform this duty.

Can you explain what we need to do in full to fill this portion of the bylaws. Thank you very much.

Prepare, or cause to be prepared, a true statement of the corporation's assets and liabilities at the close of each fiscal year, in detail.

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Aug 24, 2023
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by: BB

Certainly! The clause you mentioned in the bylaws requires the preparation of a true statement of the corporation's assets and liabilities at the close of each fiscal year. This is essentially a balance sheet that provides a snapshot of the organization's financial position at a specific point in time. Here's what you need to do:

Gather Financial Information: Collect all necessary financial data, including information on assets (both current and fixed) and liabilities (both current and long-term).

Identify Assets: List all the assets the corporation owns, such as cash, accounts receivable, property, equipment, and investments.

Identify Liabilities: List all the obligations the corporation owes, including accounts payable, loans, deferred revenue, and other financial obligations.

Hire or Consult with a Professional (if needed): If you're not confident in preparing the statement, consider hiring or consulting with an accounting professional to ensure accuracy and compliance with applicable accounting standards.

Prepare the Balance Sheet: Using the gathered data, create a balance sheet that details the assets on one side and the liabilities on the other. The difference between the total assets and total liabilities represents the organization's net assets or equity.

Verify Accuracy: Ensure that the figures are accurate and in line with generally accepted accounting principles (GAAP) or any other relevant accounting standards.

Review and Approve: The statement should be reviewed and approved by the appropriate governing body within the organization, such as the board of directors.

Compliance with Legal Requirements: Ensure that the statement meets any legal or regulatory requirements specific to non-profit organizations in your jurisdiction.

Documentation and Filing: Keep a record of the statement and any related documents, and file them appropriately. Depending on the jurisdiction, you may need to file the statement with regulatory authorities.

Communicate with Stakeholders: Consider sharing the statement with stakeholders (members, donors, etc.) if it's aligned with your organization's practices and policies.
May 26, 2018
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by: Stephanie

Thank you for your bookkeeping question about end of year bylaws for preparing a statement of assets and liabilities.

You can generate and use the corporations Balance Sheet at the end of the fiscal year in order to meet this bylaw condition.

The balance sheet should list out all of the companys assets, liabilities and equity.

You find an example of Balance Sheet here..

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