Year End Bookkeeping Procedures
Confused about Year-End Procedures?
Once you get the holiday season behind you, you may soon realize that the stress of presents and shopping was a lot less than the stress we feel about year-end taxes, reports and data that we must start to look through.
The support department at Aptora is offering you this checklist to hopefully make this year-end procedure as painless as possible.
There have been a lot of recent changes to withholding taxes for Employees and Employers. Aptora is working very hard to ensure that these are in the program and ready for January 1st. Please look for updates coming out in the next few weeks containing these changes.
Please also be aware of new Health Care Reform reporting requirements for the 2012 Year. These rules have several different requirements and exemptions. The Aptora support department cannot assist you on these rules. If you do need assistance, you should seek the advice of your Accountant or Tax Preparer. If you are required to report this information, the following Help Topic may be of assistance in setting up the additional information by clicking here. To read more on the IRS website click here.
Year End Checklist
- Order Tax Forms – Be sure to do this early so that you have them when you are ready to print. You only need to order W2 (one for each employee) W3 (one for each EIN), 1099 (One for each Vendor), 1096 (One for each Company Tax ID) (http://www.dswebtoprint.com/aptora/).
- Update to the latest version of Total Office Manager to make sure you have all 2012 tax tables. (12/31/11 or before your first payroll in 2012) (Help | Check for Enhancements and Updates)
- Reconcile all Bank and Credit Card accounts ending 12/31/11
- Take a physical Inventory count and reconcile with the software, making any adjustments needed.
- Pay all Sales Tax and Payroll Liabilities.
- Review, Print and Distribute W2 forms from Total Office Manager (Deadline to Employees 1/31/12)
- Review, Print and Mail copies of W2 & W3 forms to IRS (Deadline to mail is 2/29/12)
- Review, Print and Distribute 1099 forms from Total Office Manager (Deadline to Vendors 1/31/12)
- Review, Print and Mail copies of 1099 & 1096 to IRS (Deadline to mail is 2/29/12)
- Review and Print form 941 for 4th Quarter (Deadline is 1/31/12)
- Review and Print form 940 for 2012 (Deadline is 1/31/12)
- Back up database for the end of the year for security purposes. To set up automatic backups please see our knowledge base article here, or seek the advice of your IT Professional.
- Set your Cutoff Date. Preferences | Cutoff Date | Company Preferences. (Transactions with a date equal to or prior to this date cannot be added, deleted, or changed without Administrator’s password.)
- Call and make an appointment with your Accountant to go over any adjustments, depreciation, etc.
Frequently Asked Questions
How do I move my Income and Expenses to the proper accounts to close out the year?
Total Office Manager does not require you to manually “close” your accounts at the end of the year. This task is automatically completed for you based on the month set up for your company’s “First Month of Tax Year”. To verify that you have selected the correct month for your fiscal year, select Company | Company Information from the main menu and select the ‘Other Information’ tab. When your computer reaches the first day of your first fiscal month, Total Office Manager knows to take the proper actions for the beginning of a New Year.
How do I make changes to the information entered if it is in the wrong account, or how do I enter my depreciation?
To make account modifications or entries for depreciation in Total Office Manager you should make a Journal Entry. (Banking | Make Journal Entry)
These Journal Entries should only be made after consulting with your Accountant or Tax Advisor.
Can modifications be made to the program after the end of my fiscal year?
Yes, you can make changes to the program for either a past or future date. To ensure no one makes changes to past transactions, you can set a Cutoff Date in the program. To access this feature you must log in as the Administrator, from the main menu select Edit | Preferences and choose the ‘Cutoff Date’ tab. This will allow you to set a date, at which point no modifications can be made to accounting transactions that occurred prior to the date without the Administrative Password. (This feature is also handy to use on a monthly basis once you have “closed” your books for the month.)
Applies To: Total Office Manager