For a lot of companies January is that time of year when it's time to close the financial books on 2021. Discovery Solutions has been helping facilitate this process for over 35 years. Here are some of the tips and reminders to help you get through this busy period with ease.
A common issue in closing out year-end, especially with the Holiday season, is not sending out and dating December invoices correctly. Make sure that you have accounted for and sent out invoices for any work completed in 2021 with the proper December dates.
Tip: Using Discovery’s invoicing capabilities you can automatically turn your completed Work Orders and Services Orders into invoices which can be sent directly to your clients.
Cost of Revenue
The same situation arises when closing costs related to revenue, be sure to accrue any invoices not yet received from your suppliers.
Tip: A good way to check for outstanding costs is using Discovery’s Buyouts or PO Viewer. You can also use the Variance Accounting Tool to confirm final costs and accrue for any differences from closed out and previously invoiced jobs.
Reconcile Bank accounts
Once your income and expenses are up to date, reconciling your bank accounts against these credits and debits is the final check to confirm you haven't missed anything.
Tip: Using Discovery’s Bank Rec/Cash Management System you can quickly and accurately reconcile all your bank accounts increasing your productivity and accuracy.
Update Fixed assets
Do a final check on all fixed assets to ensure you have not missed anything throughout the year, then make sure they're updated on the balance sheet.
Prior to close do your final count of inventory to ensure it's reflective of what's on the ground and confirm its condition.
Tip: With Discovery’s Advanced Material Management System there should be no surprises but don't forget to account for any write downs or changes which can be applied to the item, serial number or SKU.
Be sure to depreciate any fixed assets on the balance sheet. This step is often missed for equipment that is rented then returned to inventory or vice versa. Discovery’s FA Depreciation tool simplifies the process and makes sure this step is not missed.
Run Your Reports
Statement of Cashflows
Cross checking and validating the balance sheet is the most important step when it comes to closing the books. To make this process easier Discovery has implemented even better auditing capabilities with its new Backbone Accounting Transactions or “BAT” which allows you to drill down from each financial statement to each transaction within a subledger to validate data.
Closing the books can be a lengthy process if not managed correctly but staying on-top of inventory, following proper monthly accounting practices, and utilizing Discovery's ERP system to its full capability can make this process seamless. Additionally, new features incorporated in the BAT automate the year-end process, making it easy for you and your team.
For any questions or inquiries do not hesitate to reach out to your Account Manager or firstname.lastname@example.org