Year-End Closing and Reconciliation in RFMS

Following a standardized list of year-end closing procedures helps ensure a smooth fiscal close and accurate roll-forward of balances. This guide summarizes the full RFMS year-end process—from inventory and banking through General Ledger (GL) closure—and can be reused each year with minimal edits.

Use this article at fiscal year-end to close out inventory, banking, Accounts Receivable/Payable, and General Ledger before you begin any payroll or tax-form processing for the new year. Always coordinate with accounting leadership before running any irreversible closing processes.

Before You Begin

Make sure the following are complete before starting year-end:

• All vendor invoices, expense payables, and job costs are entered.
• Bank statements are reconciled to the RFMS GL bank balance.
• Monthly sales or use tax reports are finalized.
• Commissions are paid and posted.
• All monthly journal closings through the current period are complete.

Inventory Pre-Counts

1. Begin pre-counting inventory to identify shortages before the full physical count.
2. Use the TriCoder (RTA’s portable bar‑code scanner used for inventory counts) or similar device to spot-count items often out of balance (e.g., pad, sundries, metals, glue).
3. Run Inventory > Reports > Physical Inventory Report and choose blind counts by location or product code.
4. Complete full physical counts at lease twice per year.

Tip: Export count data to CSV for analysis or reconciliation.

For information on taking inventory please see the article Taking a Physical Inventory.

Open Order Review

1. Navigate to Sales Reports > File > Open Orders to list all un-job-costed orders.
2. Run Orders/Quotes with Profit Report, checking Uncosted Only to see open orders.
3. Review each order for completeness and profitability before closing the year.

Bank Reconciliation

1. Go to Accounting > Banking > Reconcile Register.
2. Select the register, enter the statement date and ending balance. 
3. Highlight transactions and mark them as cleared.
4. When the difference is zero, click Done to finalized.
   • Marked transactions change to status R - Reconciled and won't appear in future periods.

For information on how to run this report please see the article Reconciling the Check Register.

Uncosted Inventory Reporting

1. Open Inventory > Reports > Range Reports.
2. Run separate reports for Rolls and Items, selecting Uncosted Only.
3. Review monthly; contact vendors for missing invoices and cost old inventory.

Posting Installer and Employee Payroll

• In Order Entry, post the Provider Earnings Report at least yearly to keep files small.
• Ideally, post before running payroll.
• Earnings can be imported into Human Resources for check writing.

Balancing Core Accounts

At month-end, balance these account codes to ensure GL accuracy:

Account Area	Reports to Run	Location
Accounts Payable	Month End AP Report	Accounting > File > Month End
Accounts Receivable	Month End AR Report	Accounting > File > Month End
Inventory	Month End Inventory Report	Accounting > File > Month End
Customer Deposits	Customer Deposits Report	Accounting > File > Month End

See the Month-End Checklist below for full verification.

Journal vs General Ledger Closings

1. Journal Closings
   • Performed monthly (typically 10th-20th of the next month).
   • Locks job costing, banking, and AP input for closed months.
   • General journal (batch) entries can still post to those months.
2. General Ledger Closing:
   • Run after all journals are closed and account codes balanced.
   • Keep the ledger open until your CPA provides adjusting entries.
   • Once closed, GL dates lock and no entries can back-date.

General Ledger Year-End Procedure

Only run the Year-End Close when:

• All 12 months are journal-closed and reviewed.
• CPA or financial advisor has filed corporate taxes and provided adjustments.

To run:

1. Navigate to Accounting > File > General Ledger > Functions > Year End.
2. When prompted, choose the Retained Earnings Account Code.
3. The system:
   • Resets income-statement accounts to zero
   • Post current-year profit/loss to retained earnings.

Exporting Reports to CSV

Most RFMS reports include an Output to CSV option:

1. Check Output CSV.
2. Enter a filename ending in .csv . 
3. Files save by default to your RFMS directory for import into Excel or similar program.

Month-End and Year-End Checklist

Timing	Task	Module / Report
Last Day of Month	Balance petty cash	Accounting
Last Day of Month	Deposit all checks and credit transactions	Banking
First Week	Reconcile checkbook to bank statement	Accounting
At Journal Close	Run Month-End AR, AP, and Inventory reports	Accounting
At Journal Close	Compare report totals to Journal balances	Accounting
After GL Close	Verify retained earnings and zeroed income accounts	GL

Optional reconciliations: depreciation schedules, prepaid expenses, jobs in progress, and notes payable.

Best Practices

• Schedule the journal close no later than the 20th of the following month.
• Retain electronic copies of month-end reports before each close.
• Use CSV exports for reconciliation documentation.
• Confirm with your CPA that all adjusting entries are reflected before final year-end.

For information on backups please see the article Best Practices for Performance, Backups, and Data Integrity.

Next Steps

After completing year-end closing and reconciliation:

• Prepare HR and supplier data using Preparing Payroll and Supplier Data for Year End in RFMS.
• Then follow Running the First Payroll of a New Year in RFMS before generating W-2s, 1099s, or T-slips.