In this article, we've explained everything about the Closing To-Do. You can learn about the below:
What is Closing To-Do?
Closing To-Dos are the tasks involved in the closing process. For example, Review Unreconciled Transactions, Review Aging Reports, Record Prepaid Entries, Record Depreciation Entries, etc.
What is GL Rec?
GL Rec is also a Closing To-Do; the only difference is that it's associated with the GL Account. While doing the closing activities, you would like to reconcile the GL balance with the external document or working files.
For example, you have got a 'Prepaid Expense' account in your books that you want to reconcile with the Prepaid Schedule. In this case, you can 'Add GL Rec' for Prepaid Expense which will then let you enter the Reconciled Balance as per your working files, and it will then calculate the difference. You should have a Zero difference, which will then indicate that you've got GL Balance and Rec Balance matching. It will also let you attach the necessary working files right there.
How to Create Closing To-Do?
Click on the '+' icon in the top right corner to see an option to Add a Closing To-Do.
You will see an option to add Closing To-Do and GL Rec only when you're in any close.
Creating Closing To-Do
While creating a Closing To-Do, you have different fields to set up. They are explained below:
Task Name - Enter the Closing To-Do Name. For example, Review Unreconciled Entries
Link Review Point - You can link any of the existing review points from Clean-up Mode. For Example, if the to-do is to review unreconciled entries, you may select the Unreconciled Entries review point from Clean-up Mode.
Select Folder - Select the folder where the Closing To-Do should live. For example, in the example given above, you may select the folder 'Bank Accounts.
Tags - Tags are ways to categorize the To-Dos. For Example, you want to assign materiality to each To-do, so you categorize them as High Risk, Medium Risk, Low Risk, etc.
Preparer and Reviewer - You can set Prepare and/or Reviewer for Closing To-Do. The preparer is generally a person who performs the task, and the Reviewer is a person who reviews it. You can set one or more preparers and reviewers (Max 3). For Example, if you have a complex and sensitive task where Junior staff has to prepare but requires to be reviewed by the Team Leader and then the Client Manager. In this case, you can set 1 preparer and 2 reviewers.
Due Date - Due Dates are attached to the roles. i.e., preparer and reviewer. You can't have due dates without the Preparer or Reviewer assigned.
Description - This is where you may include additional details about the To-Do. For example, you may write step-by-step guidelines or steps to do a particular to-do. This becomes very handy for the person who is doing the task so they don't have to refer to any external document.
Recurrence - You've got a few options to set the recurrence.
Every Close Period - All your recurring to-do should be created with this option. So, every time you start a close, the to-do will occur with the close without you needing to add them manually.
Year-End Month - Year-end specific tasks should be created using this option. For example, if you're entering depreciation entries at the year-end, you should select this option so that when you're doing year-end close, this task will appear in that year-end close.
One Time - If any such tasks are just one time and not going to recur, they can be created using this recurrence type.
Custom - If any tasks you want to occur in a specific month, you can choose this option. For example, you want to clean-up your chart of accounts, vendors, and customers on a quarterly basis. You can choose the Custom option and select specific months to select the quarter.
Checklist - Checklists should be created when you've got a few review points to be checked while doing the Closing To-Do. For example, see below:
Attachments - If any supporting documents, statements, or contract copies are necessary to do the Closing To-Do, you can upload them here. So, if the closing to-do is set to recur, the documents will also recur with it. For Example, you attached the Loan Amortization Schedule Statement to your Loan Reconciliation To-Do. So, this Loan To-Do will recur with the statement attached to it every month.
Watchers - You can set watchers who would then be notified of any Closing To-Do changes. For example, a To-do is created where a Junior Staff is the preparer and the team lead is set as a reviewer. If the manager wants to know any changes to that closing to-do, the manager can be set as Watcher, so he gets notified.
Time Estimate - You can set a time estimate for the closing to-do. This way, you will be able to track the time and figure out the time estimate vs. the time taken.
Priority - If you want to set the priority for Closing To-do, you can set it.
These functionalities - Watchers, Time Estimate, and Priority are not enabled by default. You can enable this from the Settings if you want it enabled.
Edit the Closing To-Do
To edit the Closing To-Do, you can open the Closing To-Do and click on the Edit button. Alternatively, you'll see the Three Dots next to each closing to-do, and you will see an option to edit. Once you click on it, It will open the same window as the Create Closing To-Do window, and you can edit the fields.
Edit on Three Dots
When you edit the To-Do, you will see an option to apply changes whether you want to apply the changes for the current period only or also the current period and moving forward. Accordingly, you can select the option and save it. For example, the preparer is not available for a few days, and you would like to move his tasks to someone else for the running close. In this case, you want to select the 'This Period Only' option. If the preparer has left the company and you want to move all current period and future tasks to a new person then you select the 'This period and going forward' option.
Deleting the Closing To-Do
When you click on the Three Dots next to each closing to-do, you will see an option to delete the same. Upon clicking on Delete, you will see two options - 'This period only' and 'This period and going forward'.
The 'This Period Only' option only deletes the Closing To-Do of that current closing period, and future Closing To-Do will continue to recur with the close. However, if you want to delete the Closing To-Do completely and not recur with the close in the future, select the 'This period and going forward' option.
Move the Closing To-Do
When you click on the Three Dots next to each closing to-do, you will see an option to move the same. Upon clicking on Move, you will be asked to select the folder to which you want to move it. Once selected, the Closing To-do will be moved.
You'll also see 'Three Dots' when you open the Closing To-Do (next to the Edit button).
Copy Link
When you open the Closing To-Do, you will see an option 'Copy Link'. This is helpful when you want to share the link with someone in the chat or email to ask any question or quickly refer to something. This way, the other person can directly jump on the Closing To-Do using the link without having to go to the close and then open the Closing To-Do manually.
You will see an option 'Copy Link' when you click on the Three Dots and also when you open the Closing To-Do.
Internal Comments and Client Questions
While you work through your Closing To-Dos and Gl Recs, you might come across some questions for your team and clients. You can easily ask questions right from there. The first icon is for Internal Comments, and the second one is to ask questions to the Client.
The best thing about this is that when you look at the list of all internal comments and client questions, you will see the reference to the associated Closing To-Do/GL Rec, so it is easy to correlate things.
All your internal comments and questions associated with GL Rec in the Close Mode also show up on Profit & Loss and Balance Sheet Review. So, imagine if your preparer has left the questions while working through the close, and when you, as a reviewer, are reviewing the Profit & Loss and Balance sheet, you will also see those questions there.
Review Note vs. Internal Comments
Review notes are the observations. It's not a necessary question where you seek any feedback. For example, suppose you're reviewing a GL Rec (Say Chase Checking Account), and you observe that the GL balance had decreased significantly in the current month as compared to the previous month. In that case, you may leave a review note saying, 'The $ 20k loan was paid off, and hence, the balance is quite low this month'. In this case, it's not a question but a review finding so you can leave a note so others can easily know about it without them asking.
Internal Comment should be used when you want to start the conversation or seek feedback from someone.