5 Steps for a Smooth Year-End Close in Microsoft Business Central

As a finance professional, you know year-end closing is critical for ensuring your business’s financial accuracy and compliance. Whether you’re managing books or preparing for audits, Microsoft Business Central can simplify the process—if you follow the right steps. Here’s a simple roadmap to guide you through the year-end process efficiently.

Step 1: Reconcile All Accounts

Start by reconciling your financial accounts. Pay close attention to bank accounts, credit cards, and general ledger entries. Use the reconciliation tools in Business Central to spot discrepancies and make adjustments. Regular reconciliation ensures your books reflect accurate balances before you move forward.

Step 2: Review Open Transactions

Next, review open transactions, such as outstanding invoices and purchase orders. Clear up pending approvals and resolve discrepancies. This step avoids confusion during audits and gives you a clean slate for the new fiscal year.

Step 3: Check Fixed Assets and Depreciation

Run a fixed asset report to verify depreciation calculations. Business Central offers a detailed module for managing fixed assets. Be sure to account for any disposals or additions during the year. This ensures that your asset records are aligned with the general ledger.

Step 4: Close Income and Expense Accounts

Close income and expense accounts by running the “Close Income Statement” function in Business Central. This process transfers balances to retained earnings, preparing your accounts for the next year. Double-check your entries and ensure you’ve selected the correct fiscal year.

Step 5: Run Financial Statements and Back Up Data

Finally, generate financial statements to review your company’s performance. Look at the balance sheet, income statement, and cash flow statement for any anomalies. Once satisfied, back up your data. Business Central allows you to export data for added security. A backup ensures you can restore critical information if needed.

Bonus Tip: Test Your New Fiscal Year Setup

Before closing the current year, verify that the next fiscal year’s periods are correctly set up in Business Central. Testing avoids operational delays when the new year starts.

How Navisiontech Can Help You

Year-end closing can be a challenging process, but you don’t have to handle it alone. Navisiontech has experience working with Microsoft Business Central users to simplify financial tasks. Whether it’s reconciling accounts or setting up your fiscal year, our team is here to provide guidance and ensure everything runs smoothly.

Connect with one of our financial experts to get the support of year-end close in Business Central you need, when you need it.