Annual operations

Deadlines

  • The draft statement should be ready until the end of February of the following year

  • The final statement should be done until the end of March of the following year

End of year guidelines

  • Make sure you’ve posted all expenses per 31.12.

  • Make sure you’ve posted all vendor bills per 31.12.

  • Make sure you’ve posted all customer invoices per 31.12.

  • Make sure you’ve charged all customer prepayments (timesheets) per 31.12.

  • Make sure you’ve cut off everything properly

Note

In case you receive vendor bills for the upcoming year already in December, make sure you’ve set the accounting date to the next year.

Salary reports

Salary reports per 31.12.

Report the salaries to all institutions until 31.1. of the following year.

The salaries can be read from the payroll report:

  • AHV: Report via AHVeasy the Gross Salary (reported OASI, DI)

  • KTG: Report to our insurance the Gross Salary (theoretical OASI, DI)

  • UVG: Report to our insurance the Gross Salary (w/o substitutional benefits)

  • BVG: Report to our pension fund institution the Basic Wage

New salaries per 1.1.

For the new year, check the following before the first salary run:

  • Did a salary change?
  • Did the BVG of an employee change, i.e. due to new fees, increase in age, or change in salary?

    • Get the new BVG amount from our pension fund institution

    • Update the required contract

  • Did the KTG, UVG and/or UVG-Z fees change?

Journal entries per 31.12.

Balance the personell accounts and book them accordingly:

  1. Salary Transfer Account: Book from 1091 against 5880

  2. Pension Fund: Book from 2270 against 5720

  3. OASI: Book from 2271 against 5700

  4. FAK: Book from 2272 against 5710

  5. Accident Insurance: Book from 2273 against 5730

  6. Sickness Daily Allowance: Book from 2274 against 5740

  7. Tax At Source: Book from 2279 against 5880

Hint

Feel free to duplicate an existing Manual Personell Closing Entries journal entry in the ERP.

Accural Closing Entries:

  1. Clear: Clear existing accurals to their counterpart

  2. Bonus: Estimate them and book them from 2300 against 5000

Hint

Feel free to duplicate an existing Manual Accural Closing Entries journal entry in the ERP.

Prepayments should automatically be posted and don’t need to be handled manually.

Adjust the general closing entries and book them accordingly:

  1. Del Credere: 10% of debtors (1100), book difference from 1109 against 3800

  2. Warranty Liabilities: 2% of revenue (3xxx), book difference from 2630 against 3800

  3. Taxes: Estimate them, book from 8900 to 2300 (expenses), resp. 1300 to 8900 (credit note)

  4. Year’s Profits Or Losses: Book profit or loss from 9200 against 2979

Hint

Feel free to duplicate an existing Manual General Closing Entries journal entry in the ERP.

Journal entries per 1.1.

Book the following entries:

  1. Taxes: Chargeback them, book from 2300 to 8900, respectively 8900 to 1300

Profit appropriation journal entries

  1. Year’s Profits Or Losses: Book the profit or loss from 2979 against 2970

Important

Create this journal entry on the date of the annual general shareholder meeting.

Hint

Feel free to duplicate an existing Manual Profit Appropriation journal entry in the ERP.

Dividend journal entries

  1. Dividends Payout: Book the dividend payout (65%) from 2970 to the shareholder A/C 210x

  2. Dividends Withholding Taxes: Create a vendor bill with the Witholding Taxes product

Important

Create this journal entry on the date of the dividends pay out.

Hint

Feel free to duplicate an existing Manual Dividends journal entry in the ERP.

Checks for a new year

  • Check the salary chapter above

  • Check if the private share for the company car changed

  • Check if the VAT amount changed

  • Check if the AHV family compensation and/or management expenses changed

  • Check if any thresholds (ALV, UVG, UVG-Z, KTG) changed