Q & A's
 

Use the information below to help you plan the timing of various year-end tasks. Click the links to jump to a specific section.

• Overall year-end tasks

• Accounts Payable year-end tasks

• General Ledger year-end tasks

• Payroll year-end tasks

Overall

Q: Do I need to install the year-end software update before I print W-2s, 1099s, or 1098s? 
A: Yes, if there are government-mandated updates to year-end forms, magnetic media, or quarterly reporting, you must install the year-end update before you process or print those government forms or reports.

You do not need to install the year-end software update before processing payroll or printing Accounts Payable checks for the new year. See the Payroll and Accounts Payable sections below for more information.
 

Q: In what order should I close my applications at year-end? 
A: All Sage Timberline Office Accounting and Management Product applications are closed independently of one another and can be closed in any order with General Ledger being the last one you should close. Applications are typically closed in the following order:

1. Payroll - This ensures the first payroll for the new year processes correctly. You can generate W-2s before or after you close the year in Payroll.
2. Property Management and Accounts Payable - You can generate 1099s and 1098s before or after you close the year in these applications. This also ensures the vendor totals for This Year, Last Year, and Next Year are accurate. 
   Tip: In Accounts Payable, you need to close the 1099 year at the end of the calendar year, regardless of when your fiscal year-end occurs.
3. Equipment Cost, Contracts, and Job Cost - Job Cost and Equipment Cost send entries to General Ledger, and Contracts sends entries to Job Cost. These applications should be closed before you close the year in General Ledger. If the new month is the first month of a new year, the year-to-date totals are replaced by the next year's totals.
4. Accounts Receivable and Cash Management - These applications send entries to General Ledger and should be closed before you close the year in General Ledger.
5. General Ledger - Close year in this application last to ensure all entries posted from the interfacing applications are included.

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Accounts Payable

Q: Can I print 1099s before I close the fiscal year in General Ledger? 
A: Yes. You can print 1099s regardless of whether you have closed the fiscal year in General Ledger. See the next Q&A for more information.
 

Q: Do I need to close my 1099 year before I print 1099s and checks for the new year? 
A: The timing of closing your 1099 year depends on your current 1099 year (File > Company Settings> AP Settings). Consider the scenarios below:

Scenario 1: Your 1099 year is 2010.

• You can print 1099s before or after you close the 1099 year.
• You can print 2011 checks before or after you close the 1099 year.

Scenario 2: Your 1099 year is 2009.

• Close the 1099 year before you print 1099s or print 2011 checks.
• Close the 1099 year again (to make the 1099 year 2011) to keep your settings current.

Scenario 3: Your 1099 year is 2011.

• You can print 1099s and 2011 checks any time.
• You do not need to close your 1099 year again until late 2011/early 2012.
   

Q: Can I enter invoices and print checks for the new year before I close the old year in Accounts Payable? 
A: Verify your current year and 1099 year first (File > Company Settings > AP Settings). Invoices and checks accumulate vendor and 1099 totals based on the accounting date of the invoice or check and the current year ending date. Invoices or checks with an accounting date in a future year accumulate in the Next Year box for vendor totals or for 1099 prefix totals. If you enter an invoice or print a check with an accounting date more than one year beyond your current year ending date, that amount accumulates with the Next Year totals causing that total to be incorrect.

For example, if your current Accounts Payable year end or 1099 year end is 12/31/2009, you can enter invoices and print checks with accounting dates up to 12/31/2010. Entering an invoice or check with a 2011 date causes those totals to incorrectly accumulate in the Next Year field along with all of the 2010 entries.

Do not enter invoices or checks with accounting dates more than 12 months beyond your current year end.

Note that you need to close the 1099 year at the end of each calendar year regardless of your fiscal year end date.

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General Ledger

Q: Can I close the fiscal year in General Ledger before I know what all my prior year adjustments are going to be?
A: Yes. You may want to close the fiscal year so that you can print current financial statements in the new year. When you make entries to a period in a prior year, open the appropriate prior period to post those entries in General Ledger. After you post entries to the prior year, close your fiscal year again and close the posting period again (Tasks > Open/Close Posting Period).
 

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Payroll

Q: In what order should I close the year in Payroll, install the tax file update, and install the year-end software update?
A: You can close your year, update taxes, and install the year-end software update in any order. However, you need to consider the affect that issuing checks and generating W-2s will have relative to the timing of these year-end tasks. For more information, continue reading the Q&As below.
 

Q: What do I need to do before I process checks for the new year? 
A: There are several things you must do before processing checks for the new year.

• Print and post all checks for the old year.
• Close the year in Payroll.
• Update taxes.

Note that you do not need to install the year-end software update before you process checks for the new year.
 

Q: What do I need to do before I generate W-2s? 
A: There are a couple of  things you must do before generating W-2s.

• Print and post all checks for the old year.
• Install the year-end software update.

Note that you do not need to close the year or update taxes before generating W-2s.
 

Q: What are some examples of year-end task workflow? 
A: Here is an example of common year-end Payroll workflow for Sage Timberline Office customers:

1. Print and post old year (2010) checks.
2. Close the year.
3. Update taxes.
4. Enter time, process, and print new year (2011) checks.
5. Install the year-end software update.
6. Print W-2s.

You can also view a Payroll year-end workflow diagram.
 

Q: Do I need to close the month before I close the year? 
A: No. If your current Payroll month is December, you can only close the year. Closing the year also closes the last month of the year.
 

Q: When should I update the Payroll tax file for the new year's tax changes? 
A: Download and update taxes after you print and post the last payroll of the old year (2010) and close the year, but before you process checks for the first payroll of the new year (2011). Although theUpdate Taxes command makes tax rates current for the new year, you may still need to change local taxes and rates specific to your company (for example, state unemployment rates).

If you install the tax update before you process the final checks for the old year, the checks will process with the new tax rates.
 

Q: Can I process payroll for the new year before I print W-2s? 
A: Yes, as long as you close the year in Payroll and update taxes first. You can then process payroll for the new year and print W-2s based on prior year totals.

See the following Q&As for more information. 
 

Q: Can I enter time for the new year before I close the old year in Payroll? 
A: Yes, you can enter time before closing the year. However, you should not process or print payroll checks before closing the year and updating taxes.
 

Q: Can I process, print, or post payroll for the new year before I close the old year in Payroll? 
A: No, do not process or print payroll checks for the new year (2011) before closing the year and updating taxes.

If you issue checks for the new year before closing the old year, your check calculations and government reports will be affected. See Correcting a check issued for the new year before last year was closed for instructions on how to make corrections.
 

Q: Do I need to install the year-end software update before I print checks for the new year? 
A: No, you do not have to install the year-end software update before you print payroll checks for the new year. However, you must update your tax files for the current year before you process Payroll checks in order to calculate the correct tax amounts.

Q: Do I need to install the year-end software update before I print my T4s? 
A: If there are government-mandated updates to the T4, you must install the year-end update before you print them. This Q&A will be updated when changes for year-end 2010 are known.