When the allocations are complete, the year-end process is complete and the general ledger may be closed and rolled over to next financial year.
Clicking NEXT – CLOSE FINANCIAL YEAR causes Mclowd to display the Financial Periods screen.
The DOWNLOAD button and START NEW YEAR button should be displayed for the financial year you are currently ending. The Open column should still show this year as Open at this stage.
NOTE: If you are a Trustee with no professional qualifications, and have proceeded to this point on your own, you may wish to hand over to a practitioner at this point, particularly if there is a requirement for your Fund to be audited, and/or if you wish to have a professional complete your Fund tax return for you.
End of year financial statements and member benefit statements will now be available by selecting the Reports tab.
NOTE: Mclowd offers the option (as a Paid Extra) for users to DOWNLOAD their data to a third party as an XML file to transfer to a tax lodgement service to automate tax return lodgement. Either individual trustees or practitioners can complete the lodgement process online — currently only via LodgeIT, and only if you have purchased the optional Online Lodgement package (available at https://app.mclowd.com/paid-extras or by clicking the PAID EXTRAS tab and selecting Online Lodgement). Also, simply clicking the DOWNLOAD button presents users who have not purchased the Online Lodgement service the option to purchase it now. Refer to Section 11.8 for instructions for lodging your tax return using the Online Lodgement service.
At this point, if there are errors in the Year End data, you are can still make corrections. If Year End values are not showing correctly in reports, or when you use the Accounting option to inspect balances, you can CLEAR SAVED YE DATA and start the year end process again.
IMPORTANT NOTE: The clearing account balances must be zero for the year to roll over. If not, Mclowd will display an error message: ‘’Unable to Roll GL for Financial Year 20nn-20nn, as summary P&L balance does not equal zero. It is currently $nnnn.nn.’’ Please finalise Year End Closing entries before rolling General Ledger’’.
The most likely cause of error is that profits have not been fully allocated to members. At the end of a financial year, the total of all assets, minus all liabilities, must be equal to the total of all member account balances.
Please recheck all accounts and make necessary adjustments, then try again to roll over.
When you are satisfied that the year end processes have all been completed correctly, and your tax return has been lodged, click the START NEW YEAR button to close the financial year and commence a new financial year.