Year-End Checklists

Regardless of whether your fiscal year ends on December 31, several procedures should be performed at calendar year-end. Below are Year-End Checklists for each application, along with suggested tips to guide you through the year-end processes.

Year-End Checklist for General Operations

The calendar year-end process requires special attention for users of the Financial applications. The deadline for filing most federal reports is January 31. We suggest creating a list of actions appropriate for your church.

Unless you are self-hosted, your Financial data is automatically backed up in the cloud. There is no need for you to back up. If you host the data yourself, make nightly backups to removable media or cloud storage for archiving in case the information is needed in the future. Some users also create a set of reports, save them as .pdf files, and copy them to removable media or cloud storage.

Note: All financial reports can be run any time after you have finalized your accounting year, even after you have started making entries in the new year.

If you host your data yourself, back up the following:

1. Your SQL database.
2. Your attachments folder (for example, …\Program Files (x86)\ShelbyNext\Financials\Attachments).
3. Contact your IT professional for detailed backup instructions.

After backing up, you may wish to delete unnecessary backups from your server's hard drive to free up disk space. The beginning of a new year is the optimal time to implement new backup strategies.

Suggested Reports to Print

1. Detail Ledger Report (for the entire year)
2. Year-End Statement of Financial Position (Balance Sheet)
3. Year-End Budgeted Financial Statement
4. Complete Year Journal History Report
5. Complete Year Transaction Inquiry Report from Accounts Payable
6. Year-End Statements from Accounts Receivable
7. Payroll Employee Earnings Report

Year-End Checklist for General Ledger

The year-end process for the General Ledger application requires special actions for Financials users. Below is a year-end checklist of items for the General Ledger.

1. For each application that sends a sub-ledger (journal entry) to the General Ledger (Accounts Payable, Accounts Receivable, Payroll), ensure that all entries for the previous year have been saved and posted.
2. Post all outstanding journal entries for the old year. Make sure you are in the correct year and the correct company. To search for all journals on the Manage > Unposted Journals page, click the Clear Filters link and select Select all from the Users drop-down list.
3. Transfer expenses for fixed assets to proper asset accounts if you track assets as expenses during the year and then move those amounts to a fixed asset account at year-end.
4. Enter year-end accruals (for example, account for unused vacation days) if needed:
   • Print a Time Off Hours report to calculate accrued vacation.
   • Some users may also need to calculate and post unpaid salaries that will be paid in the new year.
5. Check your Reports > Statement of Financial Position (Balance Sheet) to be sure that payroll-related liability accounts correctly report year-end balances, and adjust as needed. Liability accounts that usually need to be proofed include Federal and State withholding, FICA, 403b/retirement, charitable contributions, non-cash clearing (which should always be zero), garnishment, salary advances, employee loans, and various employee insurance contribution accounts.
6. Complete any inter-fund transfers that might be required from Enter > Manual Journals.
7. Enter next year's budget figures, if applicable.
8. Set the default year for General Ledger under Modify > Company Information.
9. Set the default period for General Ledger under Modify > Company Information.
10. Open a new period, if closed, under Modify > Year and Periods.
11. Update the Modify > Chart of Accounts as needed for the new year.
12. Run General Ledger Year-End Closing. From the General Ledger menu, select Utilities > Close Fiscal Year.

Year-End Checklist for Payroll

The year-end process for Payroll requires special action for users of the Financial applications, as federal filings must be completed. Below is a year-end checklist of items for Payroll.

1. If you are self-hosted, check the Shelby Community (Community.ShelbySystems.com) ShelbyNext > Downloads > ShelbyNext Financials Updates page to verify that you are running the latest financial software. Compare the latest Release Patch with the version displayed when selecting Help > About from the Financials top menu.
2. Visit NelcoSolutions.com/ShelbySystems or call 800-266-4669 to order W-2 forms. The most recent Universal Form can be used for both 1099s and W-2s. W-2s can also be submitted electronically via Nelco or by downloading an electronic copy and submitting it manually.
3. Verify that names, addresses, and Social Security numbers are correctly entered for each employee under Modify > Employee Information before running W-2s.
4. Verify that your church's federal identification number is entered in the Federal ID field under Modify > Employer Information.
5. If you need to file electronically, contact the Social Security Administration to receive your User ID, which must be renewed each year.
6. Run the W2S edit report and verify that reportable information for each employee is correct. If you withhold state taxes, compare federal wages with state wages.
7. Run a test printout of a W-2 to ensure you have selected the correct form. Check the printer and page size settings for accuracy.
8. Print and send W-2s and file the W-3 report.
9. Complete and send the 941 Summary report.
10. If you use Payroll to track Time Off (Sick, Vacation, etc.) hours and you reset Time Off hours at the beginning of the year, go to Utilities > Create New Time Off Starting Date.

Year-End Checklist for Accounts Payable and Bank Account Management

The year-end process for Accounts Payable requires special actions due to federal filing requirements. Below is a year-end checklist for both Accounts Payable and Bank Account Management.

1. Visit NelcoSolutions.com/ShelbySystems or call 800-266-4669 to order 1099 forms. The most recent Universal Form can be used for both 1099s and W-2s. The 1099 can also be submitted electronically via Nelco or by downloading an electronic copy and submitting it manually.
2. Enter all outstanding invoices for the old year in Accounts Payable if you are using the Accrual accounting method under Enter > Transactions.
3. Print all checks that should be issued in the old year before the end of the year under Manage > Payment Processing. Pay attention to the Check Date, Entry Date, and Posting Date to ensure they are correctly entered for the previous year, especially if you are on an Accrual basis.
4. Post all entries in Accounts Payable and Bank Account Management for the old year to the General Ledger.
5. On the Modify > Company Information page, verify that the church's telephone number, including the area code, is correct. The 1099 report prints this phone number on all 1099 forms that you issue.
6. Verify that the 1099 vendors with qualifying payments are marked with the correct 1099 status. From the Accounts Payable menu, select View > Transaction Inquiry to search and change any invoices that are not marked with the correct 1099 status. Headquarters users do not need to change entries made from the Deposits on Hand module for interest paid; the program automatically chooses the correct settings.
7. Set up a procedure to verify that a W-9 form is on file for all vendors. Also verify that the vendor is marked with the appropriate Default 1099 Status. From the Accounts Payable menu, select Modify > Vendor Information to view or modify a vendor's record.
8. Print, review, and send the 1099s and federal report.

Important: The IRS may penalize your organization for each 1099 distributed without your organization's phone number.

Year-End Checklist for Accounts Receivable

The year-end process for Accounts Receivable requires special action for users of the Financial applications. Below is a checklist of suggested actions for Accounts Receivable.

1. Review all outstanding/unpaid invoices from Manage > Unposted Invoices and write off those that probably will not be paid.
2. Run the Unapplied Cash List report for all dates, revenue centers, sources, etc. If there is unapplied cash that is illegitimate and needs to be purged, do so in Manage > Payment Processing:
   • Click Add New Payment.
   • Click Add Unapplied Cash.
   • Add an additional line on the Miscellaneous Cash tab that cancels out the unapplied cash line above. The total of the detail lines should equal $0.
3. Apply late charges (if applicable) to outstanding AR invoices from Utilities > Apply Late Charges.
4. Print and send Accounts Receivable Reports > Monthly Statements. You can save the entire run as a .pdf file for future reference.
5. Post all entries for the old year to General Ledger > Manage Unposted Journals.
6. Verify that the Accounts Receivable amount from Reports > Aging Summary matches your year-end balance sheet report.
7. Switch accounting methods if you want to change from Cash to Accrual. This can be changed from Modify > Revenue Center Information.
8. If you have a Day Care, print Reports > Monthly Statements for parents to use in filing their income tax report.

Year-End Checklist for Fixed Assets

The year-end process for Fixed Assets requires special action for users of the Financial applications. Below is a year-end checklist of items for the Fixed Assets application.

1. Review current-year purchases and verify that new items are listed under Modify > Asset Information.
2. Run a list of retiring items for the budget/planning committee from Reports > Selections and Listings.
3. Inventory all fixed assets by running a list from Reports > Selections And Listings, and adjust for retired, sold, or lost items from Modify > Asset Information.
4. Run a Depreciation Edit Report from Manage > Calculate Depreciation and Calculate for Future Budgets.
5. Run Manage > Calculate Depreciation, then post to the General Ledger. For your church, this may be either a monthly action or a year-end-only action.

Year-End Checklist for Purchasing Management

The year-end process for Purchasing Management requires special action for users of the Financial applications. Below is a year-end checklist of items for Purchasing Management.

1. Review all outstanding purchase orders and close those that have been used but still have small outstanding balances that will not be used, from Manage > Requests.
2. Review all outstanding Purchase Orders and void or close unused POs in Manage > Requests.

Updated June 17, 2026 03:11