2020 - Closing the Books and Preparing Reports2 pptx

Closing the Books 6/20/2019

ClerkBooks, Inc. 1

Closing the Books and Preparing Reports

2020 User Conference

Closing the Books

Before you close the books:Reconcile all bank accounts - Checking, Savings, CDs, etc.Reconciling adds legitimacy to your accountingEnsures transactions are entered and they actually happenedHelps to provide accurate financial reportsIt does not confirm the transaction was entered correctly – always review postings

Outstanding transactions older than 90 days should be addressedDo not change the outstanding transactionCreate an offsetting entry in the current accounting periodExample – create a deposit to offset a check, or a check to offset a depositPaychecks can get tricky (check with ClerkBooks or your Auditor)

Closing the BooksSteps to Close the BooksOpen the Closing Tools Module and change the report dates to reflect the proper accounting period.

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Closing the BooksVerify the last period is still closedOpen the Profit & Loss by FundSet your dates to last accounting period closedVerify that Net Income is zero in each Fund.

Closing the BooksSet report dates QuickBooks reports and Closing Tools should matchProfit & Loss by Fund Balance Sheet by Fund

Closing the BooksReview Profit & Loss All transactions should be entered (checks, payments, invoices, payroll, etc.)Verify transactions are in the correct fundVerify all gross pay items are in the correct fundLook for unclassified transactions Exception would be payroll liabilities in the Clerk or Finance department

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Closing the BooksPayroll liabilities in the Clerk or Finance department will be resolved with the Payroll Adjustments Closing tool.

Closing the BooksPayroll Adjustments Tool

Closing the BooksPayroll Adjustments Tool

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Closing the Books

No Unclassified column - distributed to correct funds

Verify the Payroll Adjustments Tool Verify benefits and taxes are distributed to the correct funds

Closing the BooksFund Balance Transfer Tool

Closing the BooksFund Balance Transfer ToolRun and verify the Fund Balance Transfer tool

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Closing ToolsFund Balance Transfer ToolVerify the closing of the Profit & LossNet Income should be zero in all fundsNo unclassified transactions

Closing the BooksAccounts Receivable Adjustments Tool

Closing the BooksAccounts Receivable Adjustments ToolRun the “Open Invoices” report and apply payments and credits

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Closing the BooksAccounts Receivable Adjustments ToolRun the “Open Invoices” report and apply payments and credits Look for accounts that have an open payment/credit and an open invoice Double click on the invoice

Closing the BooksAccounts Receivable Adjustments ToolOpen Invoices report-applying payments & credits

Click on apply credits Select available credits Click “Done” Save and Close the invoice

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Closing the BooksAccounts Receivable Adjustments ToolRun and verify the Accounts Receivable Adjustments Tool

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Closing the BooksAccounts Receivable Adjustment ToolVerify Accounts Receivable AdjustmentsUnclassified is zeroNothing in Proprietary “Other”

Closing the BooksAccounts Payable Adjustments ToolBill Pay is commonly used for accrual based entities. Writing checks is often recommended for cash basis.

Closing the BooksAccounts Payable Adjustments ToolRun the Unpaid Bills Detail report in QuickBooks

Bill Pay is commonly used for accrual based entities. Writing checks is recommended for cash basis.

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Closing the BooksAccounts Payable Adjustments ToolReview the Unpaid Bills Detail report for vendors that have open credits and bills

Closing the BooksAccounts Payable Adjustments ToolGo to “Pay Bills”Select the vendors with creditsCredits will then auto applyClick “Pay Selected Bills”

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Closing the BooksAccounts Payable Adjustments ToolRun and verify the Accounts Payable Adjustments tool

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Closing the BooksAccounts Payable Adjustments ToolVerify Accounts Payable AdjustmentUnclassified is zeroNothing in “Other” columns

Closing the BooksAccrued Payroll Tax Adjustments Tool

Closing the BooksAccrued Payroll Tax Adjustments ToolRun and verify the Payroll Tax Adjustments tool

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Closing the BooksStep 13 - Accrued Payroll Tax AdjustmentsVerify the payroll tax adjustments are distributed to the correct funds

Closing the BooksSales Tax Payable Adjustments Tool

Closing the BooksSales Tax Payable Adjustments ToolRun and verify the Sales Tax Adjustments tool

Note: Iowa has a different sales tax setup. If paying sales tax per the most recent instructions, there should be no need to run this tool.

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Closing the BooksSales Tax Payable Adjustments ToolVerify the Sales Tax Payable Adjustments allocated sales tax to the correct funds

Closing the BooksOther Balance Sheet Adjustments Tool

Closing the BooksOther Balance Sheet Adjustments ToolRun and verify the Other Balance Sheet Adjustments tool

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Closing the BooksOther Balance Sheet Adjustments ToolVerify the Other Balance Sheet Adjustments tool

Closing the BooksOperating Account Adjustments Tool

Closing the BooksOperating Account Adjustments ToolRun and verify the Operating Account Adjustments tool

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Closing the BooksOperating Account Adjustments ToolVerify the Operating Account Adjustments tool resolved unclassified column

Closing the BooksOperating Account Adjustments ToolVerify the Balance Sheet is ClosedAssets = Liabilities + Equity in ALL funds

Closing the BooksSet the Closing Date Set the closing date in QuickBooks to prevent changes being made in a closed periodAdjustments for a closed period would be made as an offsetting entry in a current period

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Closing the BooksSet the Closing Date Set the closing date in QuickBooks to prevent changes being made in a closed period

Closing the BooksSet the Closing Date Set the closing date in QuickBooks to prevent changes being made in a closed period

Council ReportsPreparing Council ReportsWhy are reports important?What reports should I give the Council?What should I highlight at the Council meeting?What reports should I give the Public?

Preparing Council ReportsPreparing custom reports

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Council ReportsImportance of reports• Affects decisions being made• Our job to record and communicate data• Council’s job to use, or choose not to use, that information• Develop trust and transparency

City Clerk/Finance Officer

ActivitiesCity Council/

Decision Makers

Record Processing Communicate

Analyze data Make informed decisions Create sound budgets

Council ReportsWhat reports should I give the Council?Balance Sheet by Month (Fiscal Year-to-Date)Profit & Loss by Fund (Last Month)Profit & Loss Budget vs. Actual (Summary)Claims to be ApprovedClaims Paid & Summary of Receipts (Last Month)

What should I highlight at the Council meeting?Profit & Loss vs. Budget (Summary)Balance Sheet by MonthAnswer any questions

It is recommended to have someone sign off on the bank statement and reconciliation report each month. A reconciliation report could be made part of the council packet. Bank statements need to be handled with extreme caution as they may contain city bank account information.

What reports should I give the Council?Council Reports

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Council ReportsWhat financial reports should I give the public?

Determined by Federal & State Open Records Laws Minutes must include: (each state may vary, check w/ auditor)

• Claims Paid & Summary of Receipts by Fund• Summary by Fund

AFR, SFR, Budget, Debt Report, monthly council reports, etc. Private information should not be given out

• social security numbers, birthdates, utility payment history, customer phone numbers, etc.

Reports must be given in “a reasonable time”• You can charge them for the cost of the copies but not additional fees

When in doubt, contact your City Attorney

Tr u t h f u l ~ T i m e l y ~ Tr a n s p a r e n t

Call Toll Free: (855) 525-3757

0 – Eddie2 – Sonya3 – Melinda

Monday – Friday8:00 a.m. to 5:00 p.m. CST.

Support is also available beyond these hours by appointment.

Questions?

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Documents

2020 - Closing the Books and Preparing Reports2 pptx