Zeyto Academy · Advanced · Module 7
Month-end close and financial statements
A month-end routine in Zeyto: checks, accruals, depreciation, the Trial Balance, P&L, Balance Sheet, cash flow and year-end.
You will be able to
- Run an ordered month-end checklist and use Day End to find open items
- Reconcile cash and bank and check customer, supplier and stock balances against control accounts
- Post accruals, prepayments, payroll and depreciation in the right month
- Read the Trial Balance, Profit & Loss, Balance Sheet and Cash Flow and check they tie
- Describe what Fiscal Years and Year-End Close do
The month-end checklist and Day End
- Month-end is an ordered checklist, repeated every month.
- Reports use each document's own date, so cut-off means dating documents in the right month.
- Day End finds open items; closing posts nothing but can lock the books up to that day.
- Lock last, because a lock also blocks late corrections.
Cash, bank and petty cash checks
- Your book balance comes from the Cash & bank book; the statement and the box are the outside proof.
- Bank Recon marks rows cleared and posts nothing; you compare the closing balances yourself.
- Statement balance, less outstanding payments, plus deposits in transit, should equal the book balance.
- A petty cash difference posts to Cash Short & Over (5910) the moment you record the count.
Customer, supplier and stock checks
- Every detailed list should add up to a control account in the Trial Balance.
- Aging counts invoices only; Party Balance Summary also includes opening balances and journals.
- The Goods Received Not Invoiced report total should equal account 2150.
- A stock count posts differences as an adjustment; shortages reduce stock and profit.
Accruals, prepayments and payroll
- An accrual books a cost in the month it belongs to; Zeyto has no automatic reversal, so you reverse it by journal.
- Payroll journals take the date you press Approve or Pay.
- An amortization schedule posts nothing until you run Post Due Amortizations as of the month end.
- A prepaid schedule debits expense and credits the balance sheet account; deferred income does the opposite.
Fixed assets and depreciation
- Depreciation spreads an asset's cost over its life; the books carry cost less accumulated depreciation.
- Straight line = (cost - residual) / life; reducing balance charges one twelfth of the rate on what is left.
- The Depreciation Run posts one voucher on the last day of the month and never charges a month twice.
- Cancel the latest month first to undo a run.
The Trial Balance and correcting errors
- The two Closing totals of the Trial Balance must be equal; it proves entries balance, not that they are right.
- Data health checks balances, parties, stock, VAT and numbering without changing anything.
- Correct by Amend or Cancel first; a Journal Voucher covers entries no document produces.
- Nothing is deleted: every correction adds a reversing entry.
Profit & Loss and the Balance Sheet
- Net profit = total income less total expense; gross profit = sales less cost of goods sold.
- The Balance Sheet balances because assets = liabilities + capital + profit.
- FY to date and This quarter are calendar-based; type fiscal dates yourself.
- Zeyto's Trading & P&L and plain P&L show the same net profit.
Cash flow, liquidity and year-end basics
- Profit is not cash; the indirect Cash Flow report explains the difference and must tie to Cash + Bank.
- Cash and Liquidity forecasts 90 days from booked items only and states its confidence.
- Year-End Close moves the year's profit into retained earnings with one voucher per branch and locks the year.
- Close a year only after all adjustments are posted and earlier years are closed.
The month-end checklist and Day End: key table
| Step | What you do | Where in Zeyto (lesson) |
|---|---|---|
| 1 | Submit or delete drafts; close tills and Field Sales sessions | Accounting, Day End checklist (this lesson) |
| 2 | Check cash, bank and petty cash against reality | Cash & bank book, Bank Reconciliation, Petty Cash count (lesson 2) |
| 3 | Check customer, supplier and stock balances | Aging, Party Balance Summary, Stock reports (lesson 3) |
| 4 | Post accruals, prepayments, payroll and depreciation | Journals, Amortization, Payroll, Depreciation Run (lessons 4 and 5) |
| 5 | Run Data health and the Trial Balance | Reports (lesson 6) |
| 6 | Read the Profit & Loss and Balance Sheet | Reports (lesson 7) |
| 7 | Lock the period | Day End or Settings, Posting Controls (this lesson) |
Cash, bank and petty cash checks: key table
| Item | Amount (AED) |
|---|---|
| Bank statement closing balance, 31 October | 52,300 |
| Less: cheque issued, not yet presented (still Uncleared, a payment) | -3,000 |
| Add: deposit made on 31 October, not yet on the statement (still Uncleared, a receipt) | +1,500 |
| Equals: book balance in Zeyto | 50,800 |
Profit & Loss and the Balance Sheet: key table
| Assets | AED | Liabilities and capital | AED |
|---|---|---|---|
| Cash and bank | 60,000 | Trade payables | 28,000 |
| Trade receivables | 45,000 | VAT output | 6,000 |
| Inventory | 30,000 | Accrued expenses | 5,000 |
| Fixed assets 60,000 less depreciation 900 | 59,100 | Share capital | 100,000 |
| Prepaid expenses | 22,000 | Profit for the period | 80,100 |
| VAT input | 3,000 | ||
| Total | 219,100 | Total | 219,100 |