Tasks required to close business days accounting.
Balance Cash Drawers
Close the Day
- From the LP3 Main Menu Screen, click on Accounting Menu at the top and then the Closing sub menu.
- Make sure all other users are logged out during this step. A popup window will remind you to make sure all other users are logged out.
- Review all accounting transactions for the day and add any additional withdrawals, deposits, checks, vouchers, cash-in or other misc. oncome, from buttons at the bottom of the closing screen
- Once all accounting has been verified, continue by selecting Continue Closing button at the bottom of the screen.
- Count all cash in the office and enter the amount in Cash Count area. Software will notify you if your cash count is short or over. If you are short or over, software will ask to verify the discrepancy.
- Closing is now complete and a Period Report snapshot of the days accounting transactions has been generated and available for review and printing.
Close the Day
Close Business Day, Month and Year
Cash Count Bank Balance “Formula”
Cash Count & Bank Balance Video
Closing the Day Detailed Steps
What is Close the Day?
Closing the day, finalizes the day’s business by confirming all loan transactions and completing additional accounting bookkeeping entries, for the cash drawers and checking account reconciliation.
Why is Closing the Day Important?
Closing the Day is important because, it creates the ability to capture and reconcile all loan and accounting transactions for each day of business. It brings the day’s business to an end properly and allows for the generation of a multitude of reports, used in auditing, and managing, all aspects of your loan business. How much cash did you end that day with? How much cash did you start the next business day with? Who was delinquent that day and for how long? Who did your staff call that day to collect past due amounts? Who should you solicit to come in and refinance their loan? How were you doing that day compared to a month ago, or on the same day a year ago? All these questions and many more can be answered by closing each business day properly through the software.
Closing the day is divided into 2 major parts. The first closing screen, is the Closing Transaction Screen. The second closing screen is the Cash Count Screen. To access the Closing Transaction Screen, put your mouse pointer on the Accounting menu at the top and then the click the Closing Menu.
In order to complete both steps of the closing process, all additional users must be logged out of the software. The software will notify you to have everyone log out.
If you will be completing both steps of the closing process, have all other users complete their work and logout of the software. If you will just be adding bank account transactions like entering information on paying a bill, it is not necessary to have other users logout.
The Closing Transaction Screen is divided into 2 parts. The top part is the Loan Register (Today’s Business). The Loan Register is all the loan related transactions for the day. The bottom part is the office expense/accounting transactions section like Misc Income, Withdrawals, Deposits, Checks, Vouchers and Cash In. You can enter these transactions during the day or all at once at the end of the day.
After thorough verification of all loan transactions and other cash and bank transactions are correct, in the Closing Transaction Screen, and all other users are logged out of the software, click the continue closing button. This will take you to the Cash Count Screen
The final step in the closing process is to count all cash in the office. Do not just enter an amount that matches the Cash Should Be. If you are Cash Over or Cash Short, make sure you counted the cash correctly and enter the exact amount you counted. It is better to fix a mistake the next business day then it is to not close because of an Over or Short Cash amount . There are additional ways to fix the accounting mistake the next business day but will require Owner/Manager access to make the edits. Click the Continue Closing Button to continue the closing process.
If the Cash Count is not what the system expects, it will give you and Over or Short Message window to accept. Click to Accept! In this example the expected amount was $630.31 and only $500.00 cash was entered from the Cash Count.
The next popup message you will get in the Closing the Day is the Drawers have been balance, continue to close the business day? Click (Yes) to continue Closing the Day
The next popup message you will get is “Close Month?” ***ATTENTION*** If this is not the last business day of the month, DO NOT SELECT YES!!! If you select YES by mistake, it will ask you the same question a second time. If it is not the last business day of the month, DO NOT SELECT YES!!!
After confirmation of close of month is selected, the Close of day calculation process with begin! ***ATTENTION***ATTENTION***ATTENTION*** You are NOT! closed yet! You will see the follow:
Even when you click to close the Closing out ……. message, You are NOT! closed. Do NOT! let anyone else log into the software and make any entries during this time. Do NOT! run any mail or reports or anything else and do not close the screen!!! Notice the following on the screen.
The Closing may take several minutes. There are a lot of calculations needing to be made within the software. Please be patient and wait for the following notification the Closing is completed.
If another user logs into the software at this point and does any transaction, it will create a lof of problems! If you remember that this stage, you forgot to enter a transaction, it is too late. Do not try and stop the process by exiting or closing the screen. Please be patient and make sure no one logs in and does any work. Also make sure you do not close the screen until you see the following message.
The Closing of the Day is complete and a Period Report will be generated for the day. If you discover a forgotten transaction needing to be posted, you may do it now. A forgotten transaction may be the reason for an Over or Short on cash count. Your Period Report will show the Over or Short for that date but entering the forgotten transaction will make everything balance in the next business days Closing. Fixing the mistake this way, still keeps as an example, a forgotten customer payment, entered after closing but on the same day of closing, from showing as a late payment in the system.
Other reports generated during closing:
Charge off Report (If Closing the Month)
Exports for Home Office
1. Metro file (at end of month )
2. Active Export
3. Inactive Export (at end of month)
4. Collections Export
5. Projections Export (at end of month)
6. Denial Export (at end of month)
7. Loan Detail Export
8. Loan Summary Export
At end of month means it’s trigger by Closing the Month