A financial year is a 12-month period used for financial and tax reporting purposes (e.g., from March of the previous year until the end of February of the current year). The financial year end date may differ from the calendar year end. The Year End is processed once you are ready to transition from one financial year to another.

BEFORE YOU PROCESS THE YEAR END

Prepare Audit Reports:

1. Ensure all banking is up to date and reconciled.
2. If required: Process the Trust/Business Transfer report on the last day of your financial year end, e.g., after all transactions have been imported on February 28th. This ensures that any Trust Balances appearing on the Income Statement items are properly converted into Business Balances, such as bank charges.
3. Perform Yean End to close off the previous financial year. Depending on clients, journals may need to be formed to fix balances before the year end can be successful. 
   

After submitting, wait for approval from Auditors or Accountants:

1. Obtain approval from your auditors or accountants, usually after the final year audit, you can perform the Year End function on PropWorx.
2. After completion, no further journals or transactions can be done for that year.
3. Lock Period Recommended. It is recommended to lock the period to prevent any alterations after the year-end process is complete.
   

Perform a change on Year End

1. Click on Accounting on the Main Menu.

2. Click on Balances

3. On the main ribbon bar, select the Year End then Year End Process.

4. From the calendar select the Year End date (i.e. 28 February 2024) and Retained Income Account (i.e. RIN001) from the dropdown. Click Process to perform year end. 

Year End Report

1. Click on Accounting on the Main Menu.

2. Click on Balances

3. On the main ribbon bar, select the Year End then Year End Report.

4. Select date range from calendar. 

HOW TO FIX AN UNSUCCESSFUL YEAR END

Step 1: Prompt will appear if Change of Year End is UNSUCCESSFUL

Step 2: Make a note of the files that have trust balances on the income statement items. Click on Ok.

Step 3: Close the Year End screen.

Step 4: Perform trust journals to temporarily reallocate the trust balances. Perform a back dated journal from Income statement file to the SUSP001 (e.g. credit TRB001 with R500.00 and debit SUSP001 with R500.00) for the date of the year end (i.e. 28th February)

Step 5: Go back to the change year end and process the year end. Prompt will appear if Change of Year End is successful.

Step 6: Perform trust journals again to reallocate the trust balances to their original files. Perform a back dated journal from Income statement file to the SUSP001 (e.g. debit TRB001 with R500.00 and credit SUSP001 with R500.00) for the day after the year end (i.e. 1st March)

Step 7: These balances will be part of the new financial year.