Year End Procedure

Year End Process flow

Easy PC Accounts offers a straight forward year-end procedure and there is no complex year end process to follow. If you follow these simple tasks your financial year data should be accurate. In addition we show you how to deal with invoices you have received but will not be paying until the next year.

The following are the three key steps.

  • Year end bank reconciliation
  • Setting box numbers for the annual accounts
  • Producing the accounting statement
  1. Bank Reconciliation:
    • Perform bank reconciliations for all accounts up to 31 March.
    • Use the Consolidated Reconciliation feature under the Year End menu to reconcile all bank accounts. Ensure all accounts are reconciled to the year end date, including ones without any transactions.
    • You should publish this document on your website along with other audit information.
  2. Annual Return:
    • Ensure all relevant transactions are entered, and the bank accounts agree with your accounting records.
    • Use the Annual Return menu under the Year End menu to generate figures for Section 2 of the AGAR.
    • This report will provide all the figures needed for the AGAR form. If this is the second or subsequent year of using Easy PC Accounts, it will also show variances between the current year’s figures and the previous year’s figures. These variances are necessary for external audits, as you need to explain any significant discrepancies.

Accounting Statements – box numbers
Section 2 of the AGAR requires the Council to produce a set of financial statements in a particular form. This is automatically produced by the Easy PC software using the Annual Return feature under the Year End menu. However, for these figures to be correct you need to have set up the Box Numbers in your Chart of Accounts.You can check this by using Manage accounts in the Setup menu.

You will see below the screen that shows the account codes and the box numbers. If these have not been set up (or have been set up incorrectly) you can rectify this by using the Edit account link to the right of the other details.


If you do this you get the following screen (for example)

The box number field is a drop-down which allows you to choose which account codes make up the contents of the box in the accounting statements for the AGAR.

Statement of accounts
This is produced when you use the Annual return option in the Year End dropdown menu. It shows the figures that you will need to enter into the AGAR and also, in the second or subsequent year of you using Easy PC Accounts, the variances that will help you decide on the explanations you provide to the external auditor.

Starting a new Financial Year

Use the Change Financial Year feature in the Administration menu to start a new financial year. This allows you to enter transactions for the new year while keeping the previous year’s transactions unaffected.

Invoices received for payment in April (and later)

Easy PC Accounts works entirely on a Receipts and Payments basis and so there is no concept of, for example, a purchase ledger.
However, if you know the dates when these invoices are to be paid, you can record the payment dates in advance by changing the financial year and then entering them with their expected payment dates. You can also enter the dates on the invoices (needed for your VAT126 return) but that will have no effect on the accounts.
When you change the financial year back to the current year, these payments will still be recorded but will not be included in the financial accounts.