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MYOB YEAR END PROCEDURES

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24 / May / 2007

Company Data Auditor
If you use MYOB Accounting/Plus v15, Premier v9, or AccountEdge v5 (Mac) you can use the Company Data Auditor to quickly check the integrity of your MYOB file.

The Company Data Auditor is located in the Accounts Command Centre, and provides information such as the software version, last backup and file size. You’ll also be able to see at a glance which bank accounts have been reconciled, whether your receivables, payables and inventory balance, as well as other reconciliation functions.

Before you commence the following steps at year-end you should work your way through the Company Data Auditor, in particular the Data Exception Review, and fix any transactions causing out-of-balance problems.

Backup your file
After entering all the transactions for the financial year, make sure you do two backups of your file. Store one at your place of business and the other in a separate, secure location.

Reconcile your bank accounts

Always reconcile your bank accounts as at the 30 June. If your
statement’s closing date is after 30 June, simply rule a line after the last June transaction, calculate the closing balance on the statement, and reconcile to that point.

Bank entries
If bank charges or interest are on your bank statement but not yet entered in MYOB (and therefore not showing on the Reconcile Accounts screen), click Bank Entry and enter them there. They’ll then be automatically marked as ‘cleared’.

Reconcile your accounts receivables & payables

In the new version of MYOB, run the Data Exception Review from within the Company Data Auditor to identify any out of balance problems with your receivables and payables. Go to your Sales and Purchases reports and print the Receivables Reconciliation Summary and Payables Reconciliation Summary reports at 30 June.
If the out of balance is zero, all is ok. But, if it shows an amount, you’ll need to find out where the problem is.
In the new version of MYOB, the Company Data Auditor function finds the out of balances for you, saving lots of time and frustration!

Look at what you owe & what customers owe you
Now’s a good time to have a look at the customer invoices outstanding and the bills you owe your suppliers. If there are any bad debts, ensure they’re written off by 30 June. Raise a credit through the Sales area, allocate the amount to a Bad Debt expense account and apply the credit through ‘Settle Returns and Credits’ via the Sales Register.
Are there any bills on your Payables report that you don’t actually owe? If so, reverse them at 30 June.

Reconcile your payroll

After you’ve entered the last pay for the year, print the following reports:

  • Payroll Activity (Summary) for the full payroll year
  • Payroll Register (Summary) for the full payroll year
  • Entitlement Balance (Detail)
  • Superannuation reports

Make sure these are printed for the month of June (or the April-June quarter) as once payroll is rolled over you can’t access these reports again.

Balance the wages accounts
The total wages on your Payroll reports should agree with the total of the Wage Expense accounts in the Profit & Loss report. If they don’t, you will need to find the out of balance before producing the payment summaries for your employees.

Reconcile the GST control accounts

Check that the GST Collected and GST Paid accounts agree with the GST amounts showing on the GST reports.

If you report GST on an accrual basis, the amounts on the GST Summary report for the June quarter (or the relevant month if you remit monthly) should agree with the closing balance of the GST Paid and GST Collected accounts.

If you remit GST on a cash basis, the above procedure won’t work as the control accounts are accounted for on an accrual basis. Contact Melanie Jenkins for assistance with this.

Review the financial reports

Once you’re happy that you have completed everything for the year ended, print the financial reports. Have a look at the previous year’s figures and see if anything looks out of the ordinary.

Lock the periods

After sending your file and information to MJ Accountants, you don’t want to make any changes to the year just finished. To make sure this doesn’t happen, go to the Preferences area and tick the lock period option under the ‘Security’ tab.

Assess your current version of MYOB
Now is a good time to assess whether the current version of MYOB you are using is the most suitable. MYOB in the past have upgraded to new versions each May. From this year the new versions will be released in September. Purchasing a new version now, you will receive the June compliance update (with tax tables for the 2006/07 financial year for MYOB with payroll) and in September 2006 you’ll receive the new version.
The 2005 versions of MYOB included some great time saving features. There will be more features included in the 2006 versions.

For further assistance: Contact Melanie Jenkins

MYOB YEAR END PROCEDURES

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