Year End

11.9 Year End Processing: Conclusion

With your Year End Processing and rollover complete, you should now see ‘’No’’ in the Open Column for the financial year you just processed, indicating that all entries for the year have been finalized and the year closed off.

A ROLL BACK button should display that will enable you to reverse all of the end of year processing for that year and start over if you detect errors after closing a year.


NOTE: If you have already lodged your tax return, you may need to file an amended return if you choose to Roll Back and redo the end of year process.


Keep in mind that Mclowd allows you to process transactions for the current financial period prior to closing the last period, so there is no need to perform year end processing until you are totally confident that all relevant data has been entered correctly. Ideally, trustees might perform year end processing in co-operation with their accountant while tax returns are being prepared. If everything is done correctly, the figures on your tax return should perfectly match the figures in Mclowd and you should close the year with either a debt to the ATO showing in account 2-1100: Income Tax Payable, or a refund due from the ATO showing in Account 1-1090: Tax Refund Due.

When your fund receives its ATO assessment notice and you pay the tax, a journal entry as follows will clear the debt showing in Liabilities.

Income tax paid journal entry

OR you can post the payment through the Bank Data Feeds screen by selecting the transaction and choosing Income Tax Payment from the Expenses category

Posting income tax payment through bank data feeds

Alternately, if the ATO issues a refund, a journal entry as follows will account for the receipt and clear the receivable:

Income tax refund journal entry

OR you can post the refund receipt from the Bank Data Feeds screen by selecting the transaction and choosing Income Tax Refund from the Income Category.

Posting tax refund through Bank Data Feeds

The above entries would be made in the current financial year, as the liability or asset has been carried forward in the accounts to the current period.

 

 

Thank you for using Mclowd’s free SMSF Management software. We trust you will continue as a member of the Mclowd community. The Mclowd team works hard to continue improving the software. If you have any suggestions for further improvements to Mclowd, feel free to use the Feedback button (in the bottom right hand corner of each page), or drop us a note at  info@mclowd.com.


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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