Closing a SYSCOHADA fiscal year does not forgive approximation: a mistake made in December ends up in the balance sheet, in the tax package, then in the next year’s opening entries. Here are the five most expensive pitfalls, in the order they come up, with how to spot and fix them.
1. Sloppy cut-off
Every expense and every income must be attached to the year that generated it, whatever the invoice date. This is the cut-off.
The adjustments to post at 31 December:
| Situation | SYSCOHADA account |
|---|---|
| Expense of N whose invoice will arrive in N+1 | 408 Suppliers, invoices not received |
| Income of N not yet invoiced | 418 Customers, income receivable |
| Expense paid in N that relates to N+1 (rent in advance) | 476 Prepaid expenses |
| Income received in N that relates to N+1 | 477 Deferred income |
| Payroll or tax charges of N still to pay | 428, 438, 448 (accrued charges) |
How to detect it: compare December and January expenses. A January invoice for a December service must appear in 408 on the balance sheet of N.
2. Result allocated without a decision
At closing, the result is recorded in class 13. Until the general meeting has decided, it stays pending allocation (1301 for a profit, 1309 for a loss).
The classic mistake: moving the profit to reserves (11) or retained earnings (121) at closing, without minutes. The allocation follows the shareholders’ decision and is posted during the following year:
- 111 legal reserve, then other reserves;
- 121 retained earnings in credit, or 129 when in debit;
- 465 shareholders, dividends payable, for the part distributed.
3. Incomplete opening entries
Opening entries carry the balances of the balance sheet accounts (classes 1 to 5) to the first day of N+1. Three symptoms reveal a failed carry-forward:
- the opening trial balance of N+1 is empty, or its total differs from the closing trial balance of N;
- a regular customer’s account is at zero before their first payment of the year;
- the detail per customer and per supplier does not match the control account balance (411, 401).
How to fix it: regenerate the opening entries from the final trial balance of N, check that the AN journal balances, then reconcile third-party accounts one by one.
4. Unmatched third-party accounts
Matching links each invoice to the payments that settle it. An unmatched customer account is right in total but unreadable: you cannot tell which invoices are still due, so you cannot chase or properly provision a doubtful receivable.
Good practice: match as you go, at each receipt, rather than in a year-end marathon. At closing, every 411 and 401 balance must be explained by a list of identified invoices.
5. The FEC forgotten until the audit
The FEC (accounting entries file) is the complete, readable export of all the posted entries of a fiscal year. Producing it the day the audit notice arrives, under pressure, multiplies the risk of omissions.
Good practice: generate the FEC right after closing, check that its debit and credit totals equal those of the trial balance, and archive it outside the software. Accounting records are kept for ten years (article 24 of the Uniform Act on accounting law).
The checklist before clicking “Close”
- Every entry of the year is posted; no draft is left.
- Bank, cash and mobile money accounts are reconciled with their statements at 31 December.
- Cut-off adjustments (408, 418, 476, 477, accrued charges) are posted.
- Depreciation and provisions for the year are recorded.
- Suspense accounts are cleared.
- The trial balance balances and every third-party account is matched.
In SynkriaOps
Posted entries can no longer be edited: an error is corrected by a reversal. Closing is never automatic; it starts from your click on Close, after a pre-closing step that flags blocking points. It then generates the opening entries in the next year’s AN journal and places the result pending allocation; if you reopen then re-close the year, the opening entries are regenerated. The FEC is then generated from the export centre.
Help centre guides: close a fiscal year, opening balances explained, match third-party accounts, export the FEC.
For the opening of the following year, also read Opening entries and balance carry-forward under SYSCOHADA.