CMS Fund Accounting - Ledger & Payables End of Year Checklist

The End of Year processing deletes prior year transaction data, moves new budgets into place, and sets the beginning balances of all accounts to their proper value for the beginning of the new year. 

Ensure that deposits, journal entries, and credit card charges dated in this month and bills that have been paid in this month are complete and accurate. Those transactions cannot be changed after the month is closed. Bills that have not been paid are not included in account balances and they can be changed at any time.

Before processing the End of Year, print the Deposit Register, Journal Entry, Check Register, Bill List, Statement of Activities, Statement of Financial Position, and Dedicated Accounts, and General Ledger. Verify that all of the month's transactions have been entered correctly.  

Since you can continue to enter bills, checks, deposits and journal entries for the following month, you may decide to reconcile your bank account prior to running end of year to ensure all transactions have been entered correctly.

1.  Run the Finance Data Integrity Check.  

This process will perform a check of your finance data for possible problems including: missing check records, mismatched bill and check data, unbalanced journal entries, etc.

From CMS Ledger & Payables, click File | Utilities | Finance Data Integrity | OK to exit Ledger & Payables.  Click Process.


If the process finds any problems, you will need to correct those issues before completing End of Fiscal Year.

If the process completes without errors, you can continue! 

2.  Calculate Balances

From CMS Ledger & Payables, click Process | Calculate Balances | Finish.  

This process updates account and vendor balances with all of the transactions entered during the month.

3.  Print End of Year Reports

There are several reports you will need to print each month: Deposit Register, Journal Entry, Check Register, Bill List, Statement of Activities, Statement of Financial Position, and Dedicated Accounts, and General Ledger, as well as any other reports requested by others in your church.  Print the end of Month reports for the last month of your Fiscal Year.

If you have not yet established the Print Queue for the Month End Reports, click here for instructions to create the Month End Print Queue.

There are also several reports that should be printed at the End of Year:

  • Statement of Financial Position for each fund and for all funds.
  • Statement of Activities for each fund and for all funds.
  • Statement of Dedicated Accounts for each fund and for all funds.

Click here to find out how funds transfer to Net Assets.

In addition, you may want to print the following optional reports:

  • General Ledger for the entire year
  • Vendor List NOTE: if your fiscal year is not the calendar year, be sure to print this report for the entire fiscal year and for the calendar year. 
  • Vendor 1099 Forms (if applicable)
  • Annual Report Statement
  • Statement of Cash Flow
  • Monthly Budget/History
  • Vendor Audit for all or particular vendors

4.  Make a backup

Make a backup of your data prior to running the End of Month Process.  You may choose to store the End of Month backup sets in a different location than your daily backups.  Click here to find out more information on backing up in CMS.

5.  Archive CMS Fund Accounting Data for the Year

At the end of the fiscal year, financial statements are prepared and the end of year processing is completed to prepare the system for the new fiscal year. It's not unusual that investment reports and accounting adjustments are not available until several weeks or months into the new Fiscal Year. If you need to wait for that information before completing the end of year processing, it is inconvenient or difficult to obtain monthly financial statements for months in the new year.

Most CMS clients want the ability to review vendor and account transactions in the past year(s) to compare costs, adjust budgets, prepare 1099 and Payroll W-2 forms, and print other analysis reports.

CMS Fund Accounting solves the situations described above by making a copy of the system in a new folder on your computer after the normal transaction data has been entered for the current year (deposits, checks, credit card charges). The copy contains all the transactions for the year.

Adjusting entries based on the final investment reports and accounting decisions can be entered in the copy before printing the final financial statement.

This process makes a copy of the folder containing the CMS Fund Accounting data and programs (normally FIN4WIN) and creates a shortcut to access that copy. 

It copies all the files for Finance and Payables, Payroll, Fixed Assets, and any other accounting modules. The Archive copy and the shortcut to access it are normally named FINxxxx where xxxx is the fiscal year you are ending. Examples are seen below.

Note: An option to change those names is provided within the Archive Fund Accounting Utility.

Click File | Utilities | Archive Fund Acct. | click OK.

NOTE:  Norton AntiVirus software may detect the creation of the archive shortcut with a message "Malicious Script Detected" and the request "What do you want to do?".  Choose "Authorize this script" and click OK to continue.

Do not rename the CMS Fund Accounting shortcut to your new fiscal year.  Renaming the CMS Fund Accounting shortcut may cause failure of the archive function next year.  The shortcut "CMS Fund Accounting" will always be the current fiscal year.

6.  Run End of Year

From CMS Ledger & Payables System, click Process | End of Period | End of Fiscal Year.

The system will ask if you've printed the checklist and are ready to proceed.  If you have already completed all steps, click Next.



The system will perform the Finance Data Integrity Process.  Since you ran this previously, it should run through without errors.

The system will ask if you have printed all your reports, performed a backup, and completed the Archive process.  If you have already completed these steps, check each box and click Next.

The system will ask you to assign a Net Asset account for each fund to record the difference between income and expense.  The system will insert the Net Asset account used in prior years.  Enter the correct shortcut number and click Next.

You can select the appropriate choice for your budget data:

  • Budget data is not used or available at this time.  Set the budget data to zero.
  • Budget data for XXXX has not been entered.  Set the XXXX (next year) budget the same as XXXX (this year) budget.
  • Budget data for XXXX (next year) has been entered, make it active and set the XXXX (following year) budget data the same as the XXXX (next year) budget data.
  • Budget data for XXXX (next year) has been entered, make it active and set the XXXX (following year) budget to zero.

Click Next.

The system will now process the End of Fiscal Year.  Click Finish.

Once complete, you must exit CMS Fund Accounting (you do not need to restart the computer).

7.  Prepare for Next Year

When you come back into CMS Ledger & Payables, click Process | Calculate Balances | Finish.

  • Add and/or Delete Accounts, if applicable.
  • Enter new budget data, if applicable.
  • Delete Vendors no longer being used.
  • Print the Statement of Financial Position for each and for all funds. NOTE: For Asset and Liability Accounts, verify that beginning balances are the same as the ending balances at the end of the last fiscal year.
  • Print the Statement of Activities.  NOTE: For Income and Expense Accounts, verify that the account balances are zero or equal to the transactions entered for the new year, and that the budget numbers are correct.
  • Print the Statement of Dedicated Accounts.  NOTE: Verify that beginning balances are the same as ending balances at the end of last fiscal year.

End of Fiscal Year is now complete!

Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.