With the end-of-financial-year just around the corner, there are a few easy tasks your firm can action now in LawMaster to get ready for July 1. Here are some steps to consider.
If your system is set to 12 accounting periods in the year, the End of Financial Year can only be run when the Accounting Period is set as June. You will find the Accounting Period in the lower left corner of your screen. If the Accounting Period is still in May, we recommend rolling the end of month as soon as possible.
Schedule the EOFY Roll
As 30 June is a Sunday, consider when you will be rolling the EOFY and communicate with staff when the database will be unavailable for the roll.
Schedule the Payroll EOFY Roll
The payroll module is rolled independently of the accounting system and can be rolled anytime after you have finalised the last payroll for the year. If you commenced STP Reporting in the 2018-2019 year you will not need to provide Payment Summaries to your employees but will need to send a Finalisation Indicator to the ATO. The End of Year Processing Procedure 2019 provides a step by step guide for end-of-year processing of the payroll module and database. This document will be available from the LawMaster Knowledge Base.
General Ledger Transactions and Balances
Before 30 June, it is timely to review the general ledger transactions to ensure that transactions have been processed to the right ledger. Any transactions on the wrong general ledger account should be journalled to the correct account.
Speak to your Accountant
Also speak to your Accountant before June 30 to find out which reports they require before the rollover and after the rollover. Include these reports in your End of Financial Year roll to ensure that they are ready for your Accountant. If you have any questions on how to produce a specific report, please contact Helpdesk. Ask your accountant if there are any 2018 end of year journals to be entered as these will not be able to be recorded once the database has been rolled into the 2019-2020 financial year.
Set your Working Days
Looking at the calendar for the next financial year, calculate the number of working days per month, less public holidays and record these in LawMaster.
1. Go to Parameters > Resource > Maintain Budget Parameters (U_RD)
2. Enter the working days for each month (this total will be all days minus weekends and public holidays)
3. Check the Leave Flag to see any leave days that will be added back into the last accounting period
Maintain Resource Types
If your firm has different billable hours per day expectations depending on a staff member’s role, you can set chargeable target units based on these different resource levels. Here’s how to set these units:
1. Go to Parameters > Resource
2. Create your different resource types, for example Senior Associate, Solicitor, Paralegal etc
3. Assign the relevant units in the Chargeable Units and Total Units columns to suit
Create New Scales and Set Charge Rates
The new financial year is also an opportunity to create new scales so you can define different charge rates for your matters. To do this:
1. Go to Parameters > Resource > Client and Matter > Entity/Matter Scale Types
2. Add a new scale by using the context menu
3. You can also disable any old scales that are no longer relevant to new matters in the next financial year
4. To assign charge rates within each scale, go to Parameters > Resource > Client and Matter > Charge Rates. To assist with updating, Charge Rates can be exported to excel, updated and re-imported to LawMaster.
Set your Resource Budgets
To maintain your budgets for each resource for the next financial year, simply:
1. Go to Main Menu > Resource Management > Budgeting > Input Resource Budget
2. Select the appropriate resource, select ‘Next’ financial year in the top options and click ‘Global Values’. Please check all the entered details carefully before applying.
3. To review and print all resource budgets, go to Main Menu > Resource Management > Print Budget Summary
General Ledger Budgets
Review your expenses for the last financial year and calculate the income and expenses budgets for the new financial year. Keep in mind that if you pay staff fortnightly, there may be some pay periods which are 3 pays and the staff wages for these months would be 1 payroll higher.
Record the General Ledger budgets via General Ledgers > Budgets > General Ledger Budgets. As a reminder, Income budgets are entered as a negative amount and Expense budgets are entered as a positive amount.
System Control Report
Any messages showing on your system control report, should be resolved prior to rolling the database into the new financial year.
If you need more information on any of the above, or assistance with any other aspect of preparing for July 1, we’re here to help. We’ve extended our LawMaster Helpdesk hours to 8pm AEST for EOFY rollover assistance on Friday 28th June 2019. Please note that June 30 falls on a Sunday this year. If you’re planning to perform your EOFY procedures on the weekend, please inform your Account Manager or the LawMaster Helpdesk well in advance to arrange out of hours standby support. Please refer to the Helpdesk policy in the Knowledge Base for more information.