Tenant File Year End Closing Instructions for VIRTUAL SERVER ONLY
The specific instructions for closing out the year are located in your manual. This screen is intended to provide additional information and tips for closing out the year, so please follow it carefully. This documentation is for the current version - if you have an older Tenant File version, you will need to refer to your matching User's Guide for detailed instructions.
Do you need to close out the year? If you have over 100 rental units you should close the year, especially if you have not done so in the past. Closing the year will make your database smaller and it will run more efficiently. Since the Tenant File Virtual Server (TFVS) is located on a server, you should download any files that you want to keep before closing. Some users that don't manage a large number of properties like to keep a couple of years in the Tenant File which is normally ok.
NOTE: IF YOU WOULD LIKE FOR A TENANT FILE EXPERT TO CLOSE OUT THE YEAR FOR YOU AND MAKE BACKUPS, YOU CAN BOOK A 30-MINUTE REMOTE SESSION ($75.00). THAT WAY YOU CAN BE SURE IT IS DONE CORRECTLY WITH THE PROPER BACKUPS, AND ACCESS TO YOUR PREVIOUS DATA. BOOK EARLY BECAUSE THERE ARE LIMITED SLOTS. TO BOOK, CLICK HERE.
Before anything, BACKUP! There is nothing more important to closing out the year than making sure you have a good backup of your information. Once you have entered all of the information you can for the previous year, download full backups before closing out anything! Since the TFVS is on a server, you will need to download the files needed to your local computer drive. If you have a working copy of the Tenant File on your desktop, you can put the files there for easy access. You will need to download and save all database files (*.mdb) and all data files (*.dat).
It's a good idea to keep a copy of your files on removable media (such as memory stick, flash drive, DVD, etc.) so that you can store a copy of your Tenant File information 'off premises'.
Note: To see what folder your Tenant File files are in, just right-click on the shortcut icon that opens the Tenant File, choose 'Properties', and look at the 'Start in' path (NOT the 'Target').
How to download and copy your current files to a new folder for a ‘Previous Year’ backup:
Note: At this point, you have saved your Tenant File files to your computer’s DOWNLOAD folder. From there, you can copy all of the files to a removable medium. If you have a Tenant File Version 9 folder from previous years, you can COPY that folder and rename it to identify the backup files, such as ‘TF2023’ or ‘TF2021 – TF2023’. What you name it is up to you. Then, copy ALL of the DOWNLOAD files into that folder, overwriting the old data.
If you would like a Tenant File technician to restore the files for you, and answer any questions you may have, you can order a 30-minute remote session. We can connect to your computer and take care of everything. Please visit this link to order.
After everything is completed above, you can get back into your TFVS and close out the year (or multiple years).
Closing out the Year (or multiple years)
At the end of the year, once all reports are run, complete backups are made and IRS reporting is complete, you can complete the ‘Year End Closing’ procedure for your Tenant Files. This ‘Year End Closing’ procedure is designed to purge all transactions within the given date range, therefore you must make backups and print reports for the year prior to performing any ‘Year End Closing’ procedures.
The ‘Year End Closing’ procedure, found under MISC > ‘Year End Closing’, will clear all of the transactions in each ledger within the given date range. If you choose, the ending balance that is in each ledger (prior to close-out) will be carried forward into the ‘Starting Balance’ field for the ‘new year’ into each separate ledger. The Tenant File is not tied to a calendar year, so you can close out your files at any time by entering your own specific ‘Starting’ and ‘Ending’ close out dates. Remember, this action is permanent, so you should make several backups before closing.
Note: If you are closing out the current tax year, you MUST have made a copy of your Tenant File files on your computer as per the instructions above. The Tenant File 1099 MISC Program will need those files for data.
The data entered in the ‘Starting and Ending Close-out Dates’ will determine the date range that will be used to close out. All transactions within this date range will be totaled, and then completely purged. If you place a checkmark in the ‘Carry forward’ options box for the separate ledger types, the range total will be placed into the corresponding ‘Starting Balance’ for the new year in those ledgers.
If prior to running your backups, you have completed all payments to your Owners and all Owner/Property/Unit ending balances for the year are zero, you may choose to not carry forward any totals into the New Year. However, if you owe your Owners or the Owners owe you at the end of the year, you may choose to carry forward those amounts. If a Tenant has a balance, you would definitely want to carry forward the Tenant Ledger balances.
If you have already entered postings in January of the new year and have not yet completed the ‘Year End Closing’ procedure, you can set the Starting and Ending Close-out Dates as the first and last days of the previous year. Your January entries will not be affected. Keep in mind, however, that all totals carried forward will be added to any existing entries in the Starting Balance field.
You would want to make sure that you do not have transactions remaining in your ledgers from previous years. For example, if you are closing out all transactions in 2023, you need to make sure that you do not have transactions in your program prior to 2023. Those transactions should have been purged in the previous year’s ‘Close-out’. You can choose to print a ‘Trust Report’ found in your programs under REPORTS from the Main Menu > General Reports > Trust Report. Use the date starting with 01/01/0100 (enter as 01010100) and ending 12/31/9999 (enter as 12319999) to see all transactions possible in the Tenant File ledgers.
The New Starting Date Bal. Date is your new date of the Starting Balances.
Here are some other guidelines for closing out the year:
Once you have completed the ‘Year End Closing’ procedure, it is time to delete any unused ‘Account Categories’ or edit said categories. If you have ANY transactions using these accounts in your ledger don’t make any changes to your accounts.
The ‘Year End Closing’ procedure purges your transactions between the two given dates but does not affect your Bank Register. We don’t recommend deleting these, since any changes could affect your bank balances.
Reports you need to run…
The most helpful reports that relate directly to Year End Closing are the Ledger Balances, Listings, Owner Statements (detailed), Income/Expense Reports, Profit and Loss Reports and the Account Reports.
Deleting Unused Owner, Properties, Units, and Tenants…
Once you have completed your backups, reporting and ‘Year End Closing’, you would want to delete any Owners, Properties or Units that you no longer own or manage. Any Tenants that have vacated the units that you manage should have been transferred to the ‘Inactive Database’ prior to year-end. You would not want to delete your Owners, Properties and Units until after you close out. If you delete ledgers prior to close-out, your ‘Starting Balances’ will be incorrect. It is important that you also run all of the appropriate information reports, financial reports, and statements that you need for the Owners along with completing your 1099MISC forms.
Important note on deleting Properties and Units:
Keep in mind that when you delete a Property or Unit, you are also deleting the ending balance for that Property or Unit. If you choose to delete any Property or Unit ledgers, it is very important that you make a note of the ending balance in those ledgers and post that amount in the Owner’s ledger, to prevent your totals from being out of balance. We suggest that you include a remark with the transaction such as ‘Balance from deleted Unit XYZ’.
Database Maintenance…
Any time you make a lot of changes in your Tenant File database, as in the ‘Year End Closing’, you should compact the database to 'reclaim' lost space and speed up the program. Refer to 'Database Maintenance' in your Help file or manual. Click into SETTINGS from the Main Menu, ‘File Operations’ and ‘Database Maintenance’ to run the COMPACT FILES and then the REPAIR FILES procedure for both the Active and Inactive Files. Also, you should click the button to CHECK FOR LINK PROBLEMS. This will check for link problems that may have occurred while deleting ledgers. It will also check for invalid transaction dates.
If you have any questions not covered in the Year End Closing guidelines, you can purchase phone support from our website (https://tenantfile.com under ‘Support’). After ordering, call to set up an appointment. We are busy at this time of the year answering questions, so please be patient. Thank you for your continued support of the Tenant File.
NOTE: IF YOU WOULD LIKE FOR A TENANT FILE EXPERT TO CLOSE OUT THE YEAR FOR YOU AND MAKE BACKUPS, YOU CAN BOOK A 30-MINUTE REMOTE SESSION ($75.00). THAT WAY YOU CAN BE SURE IT IS DONE CORRECTLY WITH THE PROPER BACKUPS, AND ACCESS TO YOUR PREVIOUS DATA. BOOK EARLY BECAUSE THERE ARE LIMITED SLOTS. TO BOOK, CLICK HERE.
Before anything, BACKUP! There is nothing more important to closing out the year than making sure you have a good backup of your information. Once you have entered all of the information you can for the previous year, download full backups before closing out anything! Since the TFVS is on a server, you will need to download the files needed to your local computer drive. If you have a working copy of the Tenant File on your desktop, you can put the files there for easy access. You will need to download and save all database files (*.mdb) and all data files (*.dat).
It's a good idea to keep a copy of your files on removable media (such as memory stick, flash drive, DVD, etc.) so that you can store a copy of your Tenant File information 'off premises'.
Note: To see what folder your Tenant File files are in, just right-click on the shortcut icon that opens the Tenant File, choose 'Properties', and look at the 'Start in' path (NOT the 'Target').
How to download and copy your current files to a new folder for a ‘Previous Year’ backup:
- Log in to your TFVS using the Username and Password provided.
- Go to ‘Backups’ in the Tenant File.
- Select all of the database files (*.MDB) on the left.
- Click the ‘Start Copy/Restore NOW’ button.
- Under ‘Copy What Type of Files’, change it to Data Files (dat).
- Select all of the data files (*.DAT) on the left.
- Click the ‘Start Copy/Restore NOW’ button.
Note: At this point, you have saved your Tenant File files to your computer’s DOWNLOAD folder. From there, you can copy all of the files to a removable medium. If you have a Tenant File Version 9 folder from previous years, you can COPY that folder and rename it to identify the backup files, such as ‘TF2023’ or ‘TF2021 – TF2023’. What you name it is up to you. Then, copy ALL of the DOWNLOAD files into that folder, overwriting the old data.
If you would like a Tenant File technician to restore the files for you, and answer any questions you may have, you can order a 30-minute remote session. We can connect to your computer and take care of everything. Please visit this link to order.
After everything is completed above, you can get back into your TFVS and close out the year (or multiple years).
Closing out the Year (or multiple years)
At the end of the year, once all reports are run, complete backups are made and IRS reporting is complete, you can complete the ‘Year End Closing’ procedure for your Tenant Files. This ‘Year End Closing’ procedure is designed to purge all transactions within the given date range, therefore you must make backups and print reports for the year prior to performing any ‘Year End Closing’ procedures.
The ‘Year End Closing’ procedure, found under MISC > ‘Year End Closing’, will clear all of the transactions in each ledger within the given date range. If you choose, the ending balance that is in each ledger (prior to close-out) will be carried forward into the ‘Starting Balance’ field for the ‘new year’ into each separate ledger. The Tenant File is not tied to a calendar year, so you can close out your files at any time by entering your own specific ‘Starting’ and ‘Ending’ close out dates. Remember, this action is permanent, so you should make several backups before closing.
Note: If you are closing out the current tax year, you MUST have made a copy of your Tenant File files on your computer as per the instructions above. The Tenant File 1099 MISC Program will need those files for data.
The data entered in the ‘Starting and Ending Close-out Dates’ will determine the date range that will be used to close out. All transactions within this date range will be totaled, and then completely purged. If you place a checkmark in the ‘Carry forward’ options box for the separate ledger types, the range total will be placed into the corresponding ‘Starting Balance’ for the new year in those ledgers.
If prior to running your backups, you have completed all payments to your Owners and all Owner/Property/Unit ending balances for the year are zero, you may choose to not carry forward any totals into the New Year. However, if you owe your Owners or the Owners owe you at the end of the year, you may choose to carry forward those amounts. If a Tenant has a balance, you would definitely want to carry forward the Tenant Ledger balances.
If you have already entered postings in January of the new year and have not yet completed the ‘Year End Closing’ procedure, you can set the Starting and Ending Close-out Dates as the first and last days of the previous year. Your January entries will not be affected. Keep in mind, however, that all totals carried forward will be added to any existing entries in the Starting Balance field.
You would want to make sure that you do not have transactions remaining in your ledgers from previous years. For example, if you are closing out all transactions in 2023, you need to make sure that you do not have transactions in your program prior to 2023. Those transactions should have been purged in the previous year’s ‘Close-out’. You can choose to print a ‘Trust Report’ found in your programs under REPORTS from the Main Menu > General Reports > Trust Report. Use the date starting with 01/01/0100 (enter as 01010100) and ending 12/31/9999 (enter as 12319999) to see all transactions possible in the Tenant File ledgers.
The New Starting Date Bal. Date is your new date of the Starting Balances.
Here are some other guidelines for closing out the year:
Once you have completed the ‘Year End Closing’ procedure, it is time to delete any unused ‘Account Categories’ or edit said categories. If you have ANY transactions using these accounts in your ledger don’t make any changes to your accounts.
The ‘Year End Closing’ procedure purges your transactions between the two given dates but does not affect your Bank Register. We don’t recommend deleting these, since any changes could affect your bank balances.
Reports you need to run…
The most helpful reports that relate directly to Year End Closing are the Ledger Balances, Listings, Owner Statements (detailed), Income/Expense Reports, Profit and Loss Reports and the Account Reports.
Deleting Unused Owner, Properties, Units, and Tenants…
Once you have completed your backups, reporting and ‘Year End Closing’, you would want to delete any Owners, Properties or Units that you no longer own or manage. Any Tenants that have vacated the units that you manage should have been transferred to the ‘Inactive Database’ prior to year-end. You would not want to delete your Owners, Properties and Units until after you close out. If you delete ledgers prior to close-out, your ‘Starting Balances’ will be incorrect. It is important that you also run all of the appropriate information reports, financial reports, and statements that you need for the Owners along with completing your 1099MISC forms.
Important note on deleting Properties and Units:
Keep in mind that when you delete a Property or Unit, you are also deleting the ending balance for that Property or Unit. If you choose to delete any Property or Unit ledgers, it is very important that you make a note of the ending balance in those ledgers and post that amount in the Owner’s ledger, to prevent your totals from being out of balance. We suggest that you include a remark with the transaction such as ‘Balance from deleted Unit XYZ’.
Database Maintenance…
Any time you make a lot of changes in your Tenant File database, as in the ‘Year End Closing’, you should compact the database to 'reclaim' lost space and speed up the program. Refer to 'Database Maintenance' in your Help file or manual. Click into SETTINGS from the Main Menu, ‘File Operations’ and ‘Database Maintenance’ to run the COMPACT FILES and then the REPAIR FILES procedure for both the Active and Inactive Files. Also, you should click the button to CHECK FOR LINK PROBLEMS. This will check for link problems that may have occurred while deleting ledgers. It will also check for invalid transaction dates.
If you have any questions not covered in the Year End Closing guidelines, you can purchase phone support from our website (https://tenantfile.com under ‘Support’). After ordering, call to set up an appointment. We are busy at this time of the year answering questions, so please be patient. Thank you for your continued support of the Tenant File.
