When it comes to closing the general journal, about half of our customers are doing it regularly. That means the other half still aren’t, and that could be costing you time and money.
In preparing for our recent users conference, Trent Ogden looked at a small sample of our customers’ systems (about 60), and found only 50% were closing the journal.
If you’re among those who aren’t, it’s time to make it a priority. Here’s why:
Your accounting balances may be incorrect
If you’ve had a general ledger (GL) conversion done by us or by your accountant, you need to have it done again for the most recent year that has had an income tax filing. Until then, your accounting balances are incorrect from one year to the next.
It’s costing you money
As mentioned above, another GL conversion will be required, which either we or your accountant will charge for. Fortunately, this only applies to the most recent tax year.
Additionally, your accountant may be billing you more each year for the extra time it takes to fix incorrect balances and prepare your returns. You’ll also likely spend a lot of time working with your accountant to reconcile discrepancies.
Unreliable data leads to poor decisions
You can’t make confident, informed business decisions with inaccurate data. Incomplete or incorrect information can lead to missed opportunities, or worse, costly mistakes.
If you’re not currently closing your journal, we strongly encourage you to start now. It’s one of the simplest steps you can take to save both time and money while ensuring your financials are accurate and dependable.
For more details, see "Save Youself Time and Money" from our December 2024 QNews.
