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Troubleshooting Year End Errors Sage Pastel Accounting. Select OK. Select Setup Periods and deselect Use Last Period as First Period of Next Year. Select Change Year End, proceed with the Year End. For system procedures, your system should have a PDF Manual regarding month end and year end procedures. For what the auditor will expect, call the audit manager and mention you are trying to help them be as efficient as possible so you are working ahead. Ask them for the tailored PBC List they need you to complete in advance of their arrival.
- 1 Do an End of Year Store Inventory
- 2 Do Inventory at the Beginning of the Year for Tax Returns
- 3 Organize Inventory Sheets
- 4 Correctly Count Inventory
Businesses must carry out year-end inventories to meet tax requirements and to gather accurate data for financial statements. For some businesses, a complete physical inventory can be a major undertaking. By planning and implementing good inventory procedures, you can keep the headaches to a minimum and get accurate inventory counts.
Planning Phase
Divide your inventory storage areas into sections, and assign a team of employees to each section consisting of one person to do the count and a second who will record the numbers. It may be helpful to make a diagram or map of your facility with the sections and assignments labeled. Designate one employee to distribute, collect and keep track of inventory count sheets and tags used to mark stock after it is counted.
Get Started Early
Make sure inventory storage areas are clean and stock is organized. Set aside damaged or outdated inventory. In some cases, you can pre-count part of the inventory. This would include reserve inventory and items that don’t move off the shelves quickly. Meet with the employees assigned to perform the inventory count and explain the assignment of sections and how your count sheets are to be filled out.
Physical Inventory Count
Carry out the year-end inventory when your business is closed or shut the doors during the inventory. If that’s not an option, try to get the count done during a slow period. Put the process of receiving and shipping product on hold. The goal is to keep movement of inventory to a bare minimum to maximize accuracy. If you have a small business in which your inventory teams must count more than one section, have them finish each section before starting the next. Tags placed with stock to indicate items already counted and count sheets should be signed by the employee responsible for them.
Follow-Up
Recount a sample of the inventory in each section. One way to do this is to have a supervisor do the recount. Alternatively, teams can switch sections and recount a portion of another team’s section. With either approach, you improve accountability and gather the data necessary to assess the accuracy of the inventory count. Collect the signed count sheets and signed tags used to mark counted stock before you resume normal operations.
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About the Author
Based in Atlanta, Georgia, W D Adkins has been writing professionally since 2008. He writes about business, personal finance and careers. Adkins holds master's degrees in history and sociology from Georgia State University. He became a member of the Society of Professional Journalists in 2009.
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Adkins, William. 'Procedures for Year-End Inventory Count.' Small Business - Chron.com, http://smallbusiness.chron.com/procedures-yearend-inventory-count-71822.html. Accessed 17 June 2019.
Adkins, William. (n.d.). Procedures for Year-End Inventory Count. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/procedures-yearend-inventory-count-71822.html
Adkins, William. 'Procedures for Year-End Inventory Count' accessed June 17, 2019. http://smallbusiness.chron.com/procedures-yearend-inventory-count-71822.html
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