A year of paper, one upload · Meydan Free Zone · Lesson 4 of 4

Close it for the accountant

2:58 · Captions: English, Arabic, French and Chinese.

Two things are left: the setup costs Leon paid himself before the company had a bank account, and a few bank lines no paper will ever cover. In this lesson, Leon closes the year to the end of October.

What you'll learn

  • Reimburse what you paid yourself before the company had a bank account
  • Explain the lines no paper will ever cover
  • Lock the books through October and read the year's reports

Step by step

  1. Reimburse the setup costs — First, the setup costs. He opens Create Reimbursement Report and picks himself. Snappy put him in the Employee Book from the employment contract in his folder. He takes every receipt from before the bank account opened: the licence, the establishment card and the e-channel. He approves the report. The costs are in the books, and the company owes Leon what he paid.
  2. Lock through October — Then he opens Account Book Lock and picks October. Snappy first asks whether every paper is in. It is: the whole folder went in at once.
  3. What is left — Snappy gathers what is left and sorts it into groups. First, tolls and parking. Snappy asks before it changes anything, and Leon answers in his own words: there is never a receipt for these. Snappy proposes the fix, and nothing changes until Leon says go ahead. Next, the money Leon put in to start the company. He tells Snappy it is his share capital, so it needs no receipt, and Snappy books it that way. Then the gym. It is Leon's own membership, paid with the company card. He tells Snappy so, and it goes to his director loan instead of the company's costs.
  4. All resolved — Every group is resolved, so he locks the books.
  5. Locked — The books are locked through the thirty-first of October. Nothing in them can change by accident.
  6. Profit and Loss · Balance Sheet — The year's Profit and Loss is ready, from the day the licence was issued to the end of October, and the Balance Sheet balances.

From the first click to locked books took one afternoon, and most of it was a coffee. The traditional way can take days. Next year, the annual accounts and the Corporate Tax return go to the accountant, with books that are already in order.