Five Step ERP Checklist for a Smooth Year-End Close

person using a checklist to represent year-end close checklist

End your year on a positive note with our comprehensive ERP checklist. Whether you’re utilizing Sage or Acumatica ERP, these five steps are designed to ensure optimal performance from your ERP system throughout the year.

Conduct Physical Inventory

Take advantage of the year-end period to conduct a comprehensive physical inventory of your warehouse. This is an opportune time, especially when warehouses tend to slow down after the holiday rush. Utilizing tools like handheld barcode scanners or software from Scanco, which seamlessly integrates with your ERP system, can facilitate the counting of all products, including those in returns and backstock areas.

Perform Financial Reconciliation

Ensure an accurate year-end tally by reconciling bank account statements, credit card statements, invoices, and other financial data. Don’t forget to reconcile payroll reports as well.

Review and Update the Chart of Accounts

Periodically review and update your company’s chart of accounts within the ERP system. Categories may need adjustments for the new year. This can be done immediately after the year-end close, providing time for discussions with accounting and finance personnel about potential changes.

Perform System Maintenance

While cloud ERP systems are usually updated automatically by the software provider, site-based ERP requires periodic maintenance and updates. Check your system and ensure everything is updated.

Additionally, check for software updates in other systems across your company, including your website and productivity software. Consider reviewing and potentially upgrading your company’s antivirus software. Remove any users who are no longer with the company from the list of users and admins, and check user privileges to ensure they’re updated and accurate.

Backup Critical Data

Although cloud providers back up their systems and your data, having an extra backup adds a layer of protection. A year-end backup stored on an external device off-site ensures critical data is safeguarded and ready for use if needed to restore important systems.

Given the increasing risk of cyberattacks, you may also wish to schedule a cyber security refresher for the entire staff. Review and update data security policies, conduct cybersecurity awareness training, and add what-if procedures in the event of a data breach or other cybercrime.

More Tips for an Effective Year-End Close

Now that your ERP is tucked in for the year-end, what’s next? Make sure your team is updated for year-end, too.

Educate department managers on year-end expectations, deadlines, and required reports. Request early preparation of final budgets and estimates for open invoices spanning fiscal years. Review fiscal metrics with department managers using accounting software to assess benchmarks and progress.

Next, staying current with reconciliations is crucial for a faster year-end close. Monthly tasks like reconciling bank statements and credit cards, as well as sending regular customer payment reminders, help maintain cash flow. Utilize automation features in your accounting software for tasks like reminders to save time.

Treat the year-end closing process as a project, systematizing and documenting each step for a thorough examination and improvement. This written process aids collaboration and ensures a successful year-end close.

Finally, maximize the potential of your accounting system by exploring untapped capabilities. Invest time in training, reading help texts, watching videos, and consulting with software vendors to uncover hidden timesaving features. This proactive approach ensures a more efficient year-end close and reveals features that may have gone unnoticed.

Considering a New ERP System?

If you’ve been contemplating a switch to a new ERP system, now is an opportune time to perform an ERP Gap Analysis. Evaluate whether your current software meets all your needs and identify areas where a different system could enhance performance or information gathering. This comprehensive approach ensures that your organization is well-prepared for the upcoming year on both operational and security fronts.

Emerald TC is an expert Acumatica and Sage ERP consulting firm with over 23 years of experience. Our process is simple, but the results are dazzling. If you would like a consultation, we’d be happy to schedule a call. Please get in touch with us at (678) 456 – 6919.

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