Year-end Close Preparations

Close Payroll Only (after your last payroll entry of 2006):

Mid-December: Buy W-2 and 1099 Forms – Office Depot or Staples brand is fine.

Print a 1099 Report (4-5-31 in IMB 2003). Read it to determine which vendors might receive a 1099 form.

In screen 4-4, make sure all Vendors have a 1099 status which is not “0 - Undetermined”. Corporations should be set to “5 – No 1099”.

You will generate a 1099 form for each vendor which is not incorporated, which rendered services or received rent and which received over $600 during the calendar year. IMB will correctly generate 1099 forms as long as your settings are correct.

Close Fiscal Year as of 12/31/06:

Late December or Early January (before the closing procedure and before you pay any Vendors in the New Year):

Make sure all checks are entered, posted and accounted for – do not enter any more transactions.

If you have any entries on the Bank Reconciliation for any account (screen 1-5) preceded by the letter “P”, the entry is from a prior year. It must be dealt with before closing the books. Otherwise, MB will clear the item, then delete it. This will result in some confusion and needless wasted time during the next bank reconciliation.

If you need to create a payroll before closing the fiscal year, and the date falls in the New Year, you can perform all the usual steps through printing the checks. Do not post the checks. This is why IMB has a separate payroll posting option. Post the checks after you close the fiscal year.

If you wish to remove Closed jobs from the new year, set the Job Status in Jobs (3-5) to Closed. Job information will still be in your 2006 company.

You can enter AP Invoices and CPA Journal Entries for 2006 after you perform the fiscal close. Do not enter AR Invoices, Deposits or Checks of any type for 2006 after the fiscal close.