This article was updated on Friday 9th April 2021 for the EOFY 2021/2022.

Hard to believe, but June 30 is under two weeks away. To help you prepare, we’ve outlined some simple end-of-financial-year tasks your firm can action now in LawMaster so your firm is ready for July 1.

Things to Start Now

Accounting Period

If your system is set to 12 accounting periods in the year (Parameters > Set Parameters > Accounting > Processing Options), 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 set for May, we recommend rolling the end of month as soon as possible.

Schedule the EOFY Roll

As 30 June is a Wednesday this year, consider when you will be rolling the EOFY and communicate to all 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 any time after you have finalised the last payroll for the year.

If you have commenced STP Reporting, you will not need to provide Payment Summaries to your employees, but you will need to send a Finalisation Indicator to the ATO.

The End of Year Processing Guide 2021 provides a step-by-step guide for end-of-year processing of the payroll module and database. This document will soon be available through the LawMaster Knowledge Base.

General Ledger Transactions and Balances

It’s timely to review the general ledger transactions before 30 June to ensure that transactions have been processed to the correct ledger. Any transactions on the wrong general ledger account should be journaled to the correct account.

Speak to your Accountant

Contact your Accountant before June 30 to find out which reports they require before the rollover and after the rollover. Include these reports in your EOFY roll to ensure that they’re ready in time. If you have any questions on how to produce a specific report, please contact Helpdesk.

Ask your Accountant if there are any 2020 end-of-year journals to be entered, as these will not be able to be recorded once the database has been rolled into the 2021-2022 financial year.

System Control Report

Check the System Control Report > Messages to ensure that there are no errors. If there are errors, resolve them now rather than at 30 June. If you need assistance, please contact our Helpdesk.

Parameter Setup

Set your Working Days

Look at the calendar for the next financial year and calculate the number of working days per month, less public holidays. Here’s how to 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 expectations for billable hours per day 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 Charge-Rate 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. Here’s how:
1. Go to Parameters > Set Parameters > 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 > Set Parameters > Client and Matter > Charge Rates. To assist with updating, Charge Rates can be exported to Excel, updated and re-imported to LawMaster.

Resource Charge Rates

Review Fee Earner default charge rates and make any adjustments to take effect from 30 June 2021. The current year rate will move to the ‘Old Charge Rate’ field.

Enter Budgets for 2021-2022

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 three pays, making the staff wages, tax and superannuation for these months one 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.

Need Assistance with Calculating Budgets?

Our Services team are experienced in the preparation of General Ledger Budgets and Resource Budgets and can assist you with calculating budgets and importing them into LawMaster.  Please contact your Account Manager to talk about the service and how we can assist you in this area.

Practice EOFY roll

If you are unsure of the process for rolling the EOFY, we recommend running a test in your Training database before 30 June.

For guidance on the EOFY roll, read our Knowledge Base article.

Need help?

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 for EOFY rollover assistance:
– To 8pm AEST on Wednesday 30 June 2021
– From 6am AEST on Thursday 1 July 2021