Practitioner Edition

11.7 Year End Processing: Close Financial Year

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 Roll General Ledger screen.

Roll Financial Year

Select Yes if you are confident Year End Journals are complete and correct.


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.


 

Confirm year end rollover

Mclowd asks you to confirm that you wish to close the financial year.


NOTE:
At this point you can still Cancel and go back to the Actions Menu on the Financial Periods screen and RESET any data you wish to amend. Once you have Rolled the GL, you will have to Reverse New Year to make any changes.


Click OK to continue.

Mclowd displays the Financial Periods screen with NO checked in the OPEN column for the year and YES in the GL ROLLED column.

Financial Periods year closed

The Actions menu for the year just processed will now show (for Mclowd Pro and Premium users):

Actions menu year closed

End of year financial statements and member benefit statements will now be available by selecting the Reports tab.

At this point, you should move to the REPORTS tab in Mclowd and print final reports.

For users of Free Forever version of Mclowd, this ends the Year End process. Your actions menu will now show:

Actions menu free version
If you wish to download Tax File Data and/or lodge your Fund tax return using LodgeIT, you will need to upgrade.
Go to https://www.mclowd.com/plans-and-pricing-trustees/ or https://www.mclowd.com/plans-and-pricing-practitioners/ for more information.

Users of Mclowd Pro or Premium Versions should continue to Section 11.8.


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.

Although Mclowd enables Trustees to complete the entire year end and tax return lodgement independently, you may need an auditor to sign off.

If you give your accountant access to your Mclowd account, Pro and Premium version users should be able to nominate them as a user in your LodgeIT account and have them complete your return following the steps listed in Section 11.8.

 


NEXT: 11.8 Year End Processing: Downloading the Tax Return Extract (SMSFAR)

 


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding. Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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