Preparing the financial statements begins with the creation of journal receipts. Next, close the fiscal period and create balance sheet itemizations, income statement, balance sheet and the attachments. You can then create the financial statements document.
The result for the fiscal year closed is transferred from the 2370 Profit (loss) for the fiscal year account in accordance with the decision made concerning the processing of the company's result for the fiscal year
Classification of liabilities in the Payment transactions account
If, for example, a back tax based on the income-tax demand has been entered in the Payment transactions account, it is transferred from the Payment transactions account 2880 to account Other liabilities 2940.
Liabilities in the salary accounting can be specified to separate accounts when closing the accounts. When balancing e.g. accident insurance amounts, you can use the Employer payments report in Reports > Salary reports.
Reconciliation of balance sheet accounts
If a need for correction is detected, most reports enable you to scroll down directly to the accounting page to be corrected. If you do not want to change the existing accounting entries, you can create new receipts for correcting the detected differences.
The contents of the balance sheet accounts can be specified using alternative reports:
When performing monthly reconciliation and when closing the accounts, we recommend using Procountor’s Balance sheet itemization function. See the step-by-step instruction later in the text: Instructions for creating the financial statement template phase 3.
Receipt search search type Search open invoices
The most convenient way to find out the balance of trade receivables is to use the accounts receivable. When you keep the open sales invoices continuously up to date in the Receipt search, you can get the specification of open sales from there. Note that you should enter the date you want as the search criteria for the report in the Payment transactions until field.
Respectively, you can track open purchases, travel and expense invoices and VAT and employers’ contributions notifications through the Receipt search.
To analyze an account, create a general ledger report for that account. It is advisable to generate the report in a format that enables scrolling down, and select either all transactions in the entire fiscal year or transactions only in the period you want to analyze.
When needed, adjustments can be performed in the entries on the accounting page in such a report. Information can be easily sorted, facilitating the analysis, by clicking on the column headers of the drillable report.
From the upper left hand side of the report, select the account that you want to itemize, and from the top, select the time period that you want to itemize. Then click on the Search transactions button. The transactions of the account in question are displayed on the right hand side of the page.
In the Account transaction matching report, you can select one account at a time to match the desired time period, and the report shows the cumulative sum of the account.
2. Financial statements journal receipts
3. Update the reporting database
When closing the accounts, if and when you have to make changes to accounting entries and create new journal receipts, always remember to update the reporting database before running new reports, and always before closing fiscal periods or fiscal years. Otherwise, the most recent transactions will not be included and your figures will not balance out.
Use the accounting reports to ensure that the profit (loss) for the fiscal year is the same figure in the income statement and the balance sheet. The profit (loss) for the fiscal year in the income statement and the balance sheet will balance out only after the VAT statement has been created.
4. Close the fiscal period.
The financial statements document is created for the oldest open fiscal year using the Closing of accounts tools. Thus, do not yet close the fiscal year for which you want to create the financial statements. You can close the fiscal period for the last month as well. Closing the fiscal period is recommended, since it prevents anyone from making changes to the period in question.
5. Create balance sheet itemizations.
Select the first row in the balance sheet and click the Show account button. Then, use the buttons in the middle of the page to create the itemizations for that account.
The buttons in the middle of the page vary slightly depending on the balance sheet account that you are itemizing. In the main, you should start by retrieving the opening balance by the Search opening balance button and then click the Search transactions button to show all transactions in the period to be itemized.
Only the relevant rows will be shown. Unnecessary rows will be deleted and, if possible, rows are combined. First highlight the rows to be deleted or combined using the Ctrl and Shift buttons. You can select all rows with the Select all button. You can make this easier by sorting information with Column headers.
For combined rows, Procountor will suggest Explanation alternatives through the drop-down menu. Select one of them, and, if needed, you can edit the explanation later. You can also edit the date and sum in the balance sheet itemization rows.
Balance sheet itemization rows can be added.
Remember to periodically save the data you edit.
When the Undetailed balance shows zero, you can move to the next balance sheet account to be itemized, i.e. highlight the next row (it turns dark grey) and click the Show accountbutton.
To itemize the Profit (loss) for the fiscal year 2370 account, use the Search fiscal year net profit button.
When you have detailed all balance sheet accounts, click on the Export to archivebutton. Then, you can see the balance sheet specifications in PDF format in Procountor section Accounting > Archived financial statements.
6. Create an income statement, balance sheet and attachments.
When all is in order, create the financial statements in Accounting > Closing of accounts tools. Comparison data from the previous year can be entered manually for the reports in the first year. If the data for the previous year is available in Procountor, the comparison data is included automatically.
Create the income statement and balance sheet using the Edit button next to each of them.
Add the attachment receipts by moving to the view in question through the Edit button.
7. Create financial statements
You can enter changes that repeat each year in the financial statements template. Edits applicable to the fiscal year in question only are made in the Printable financial statements.
Enter the information that is not readily available in Procountor (e.g. dividend distribution)in the Enter amount fields of the financial statements to be printed.
Separate instructions are available for editing the financial statements template.
Once you have finished the financial statements document, remember to click the Export from file to archive button. Then you can see the completed financial statements document in PDF format in the Procountor section Accounting > Archived financial statements.
8. Print and sign the financial statements document
Print and sign the completed financial statements document.
9. The signed financial statements document is scanned and saved
After the signatures, the completed financial statements document can be scanned and the scanned financial statements can be archived.
You can start the new fiscal year while the old one is still open When the financial statements of the old fiscal year are ready, close the old fiscal year in Management >Accounting info > Fiscal years.
11. Processing the fiscal year’s profit (loss)
The opening receipt for the next fiscal year is created automatically when the fiscal year is closed. The opening receipt of the fiscal year contains the profit/loss of the closed fiscal year in account 2370 Profit (loss) for the fiscal year.
In the new fiscal year, the profit/loss of the fiscal year has to be transferred by a separate journal receipt from the account 2370 in accordance with the decision concerning processing of the company's profit or loss, either to retained earnings gain (loss), i.e. post profits on account 2370/2250 and losses correspondingly on account 2250/2370, or distributed as dividend or otherwise posted out of the profit (loss) for the fiscal year before the next closing of accounts.