Before hard closing a fiscal year, 

  1. Post all activity
  2. Reconcile subledgers
  3. Ensure you have established fund balance accounts  for all funds
  4. Define your next fiscal year
  5. Back up the database
  6. Print the pre-close report
  7. Run the following reports:
    Note: For best results, create a new default template and use it for these reports:
     
    • Trial Balance Create a new trial balance for the same cutoff period as your fiscal year:
      1. On the General tab, select Balance as the Report Format.
      2. Select <specific fiscal year> in the Date field, and, in the Fiscal Year drop-down list, select the fiscal year you are closing.
      3. Select the Format tab and highlight Detail.
      4. Mark the Show account category totals checkbox.
      5. Select File, Save from the menu bar to save the report.
      6. Print the report.
         
    • Income Statement - Create a new income statement for the same fiscal year:
      1. On the General tab, select a chart template. Because this report is for reconciliation purposes only, select a level of 1 to omit detail.
      2. Mark the Include accounts with no activity and Include inactive accounts checkboxes.
      3. Select the Columns tab and highlight the Actual column. Click Open Column.
      4. Select the Date Range tab.
      5. Select <specific fiscal year> in the Date field, and, in the Fiscal Year drop-down list, select the fiscal year you are closing.
      6. Click OK.
      7. Select File, Save from the menu bar to save the report.
      8. Print the report.
         
    • Balance Sheet - Create a new balance sheet for the same fiscal year:
      1. On the General tab, select a chart template. Select a level of 2 to omit detail.
      2. Mark the Include accounts with no activity and Include inactive accounts checkboxes.
      3. Select the Columns tab and highlight the Actual column. Click Open Column.
      4. On the Date Range tab, select <specific fiscal year> in the Date field.
      5. From the Fiscal Year drop-down list, select the fiscal year you are closing. In the Period drop-down list, select the last fiscal period of your fiscal year. For example, if you have 13 periods, select Period 13.
      6. Click OK.
      7. Select the Format tab and highlight Detail.
      8. Mark the Print change in Net Assets checkbox.
      9. Select File, Save from the menu bar to save the report.
      10. Print the report.
         
    • Statement of Activities - Create a statement of activities for the same fiscal year:
      1. On the General tab, select a chart template. Select a level of 1 to omit detail.
      2. Mark the Include accounts with no activity and Include inactive accounts checkboxes.
      3. Select the Columns tab and highlight the Unrestricted column. Click Open Column.
      4. On the Date Range tab, select <specific fiscal year> in the Date field, and in the Fiscal Year drop-down list, select the fiscal year you are closing.
      5. Click OK.
      6. Repeat steps d and e for the Temporarily Restricted, Restricted, and Total columns.
      7. Select File, Save from the menu bar to save the report.
      8. Print the report.
         
    • General Ledger Report - Create a general ledger report for the first day of the next fiscal year:
      1. On the General tab, select a chart template.
      2. Select <specific range> in the Date field, and enter one day after you fiscal year closes in both the Start date and End date fields.
        For example, if you fiscal year ends 6/30/2006, enter a start and end date of 7/1/2006.
      3. On the Filters tab, choose Selected from the Category drop-down list.
      4. On the Selected Categories screen, highlight Net Assets(or Fund Balance)  and click the right arrow.
      5. Click OK.
      6. Select the Format tab and highlight Detail.
      7. Mark the Include Grand Total checkbox.
      8. Select File, Save from the menu bar to save the report.
      9. Print the report.
         
  8. Compare the the Net Surplus/(Deficit) from:
  9. Compare the ending Fund Balance from:
    • The Income Statement
    • The Balance Sheet
    • The Class Section of the Pre-close report Note: The Pre-close report will only display a class section for funds that have activity in a particular class that would affect the fund balance accounts. If a fund only has activity in Asset, Liability & Fund Balance accounts there will not be a class activity section on the pre close report.
    • The Total column of the Statement of Activities
      Note: If the Unrestricted, Temporarily Restricted, or Restricted totals are incorrect, refer to How to change the amount of Unrestricted, Temporarily Restricted and Restricted Net Assets.
  10. Consult your accountants regarding any changes. If changes are made, repeat steps 1 through 9.
  11. Make a backup of your database.
  12. Hard close the fiscal year.

For more information about closing your fiscal year, refer to The Financial Edge End of Year Guide (PDF).