One of the most common questions we get asked by clients new to Yardi Voyager is: “What are the best practices for period-end closing processes, and how can I make them more efficient?”
It’s a great question because well-executed Yardi Voyager period-end closings ensure financial accuracy, regulatory compliance, and operational efficiency. While there is never a one-size-fits-all approach that works for all clients, our expert team of Yardi consultants has gathered quite a few tips and guidelines for optimizing monthly, quarterly and annual closures in Voyager.
We’ve shared our best practices for Yardi Voyager period-end closings below. For even more streamlined closures, be sure to download our FREE Voyager Period-End Checklist, available in both Google Sheets and Microsoft Excel formats.
Best Practices for Yardi Voyager Period-End Closings
1. Understand the Voyager Period-End Close Framework.
Yardi Voyager offers robust tools for period-end processes, but the key to success lies in understanding its workflow:
- Core Modules: General Ledger, Accounts Payable/Receivable, and Property Management.
- Specialty Modules: Fixed Assets, Job Cost/Construction, Investment Accounting
- Integrated Processes: Yardi’s modular design ensures data flows seamlessly across various functionalities, reducing redundancies and errors.
2. Be Aware of Common Pitfalls.
- Insufficient user access controls: Failing to set up user permissions properly can lead to security issues and errors in the Yardi Voyager period-end closing process. It’s crucial to regularly review and update user access, limiting access to past and future periods to prevent mistakes.
- Manual close processes: Relying on manual property close processes can be time-consuming and error-prone. This can include separately closing accounts payable (AP), accounts receivable (AR), and General Ledger, which increases the risk of an oversight. Automating the closing process can save time and ensure consistency.
- Inconsistent data entry: Lack of standardization in data entry and processes can lead to errors that complicate the month-end close.
- Incorrect sequence of events: Ensuring that closing procedures are performed in the correct order is key as many closing tasks are interdependent. Performing them in the proper sequence prevents issues arising from incomplete or inaccurate information.
- Pending workflows: Approvals not finalized before closing can create reconciliation headaches.
- Misaligned calendars: Ensure all modules, including General Ledger, AP, and AR, are synced to the same fiscal calendar.
3. Heed These Special Considerations for Year-End Closures
Year-end closures go beyond standard month-end tasks. Consider the following:
- GL automatic year close: Most Yardi users opt to have the year closed automatically along with the final month to simplify the process.
- Fixed Assets: Process depreciation schedules and ensure all assets are categorized appropriately.
- Compliance: Prepare tax filings (e.g., 1099s for U.S. clients) and VAT reports for EU-based operations.
- GL year-end rollover: Execute the fiscal year rollover in Yardi while maintaining detailed reporting for audit purposes.
- Inter-entity consolidations: For clients managing multiple entities, Yardi’s tools streamline consolidations and reporting.
4. Maximize Efficiency Across Yardi Modules
To make closures more efficient, leverage these Yardi features:
- Automation: Minimize manual work by using recurring charges, automated journal entries, and scheduled processes.
- Dashboards: Set up custom dashboards for a real-time view of tasks, approvals, and reconciliations.
- Data import tools: Streamline bulk data entry using Yardi’s Data Import functionality.
- Custom reports: Tailor financial reports to focus on exceptions or high-priority items, reducing time spent on reviews.
5. Consider Ongoing Improvements for Accuracy and Efficiency
- Periodic audits: Run regular data checks to catch discrepancies before they escalate.
- Standardized workflows: Develop consistent processes across teams to reduce errors and improve accountability.
- Training: Regularly train your team on Voyager updates and best practices to ensure they’re making full use of the system’s capabilities. Creating standard operating procedures [LINK TO LANDING PAGE] and quick reference guides, and encouraging their use across your organization, will provide a foundation for continuous improvements.
6. Common Client Concerns
Here are answers to some frequent questions:
- What if I close a period prematurely? Yardi allows you to reopen periods, but this should be done sparingly and with proper documentation.
- How do I handle post-closure adjustments? Create journal entries in the subsequent period or, if necessary, reopen the closed period for specific adjustments.
- What happens if reports don’t balance? Recheck reconciliations and ensure no open transactions are lingering.
Having a well-structured checklist can help your team avoid costly pitfalls, improve efficiency, maintain consistency, enhance accountability and facilitate compliance. To that end, 33Floors has developed a comprehensive month-end checklist available FREE at this link.
By following these best practices for Yardi Voyager period-end closings, you’ll leverage the system’s capabilities to their fullest. While the steps can feel overwhelming initially, a disciplined approach ensures accuracy and saves time in the long run. If you’re struggling with closures or looking to refine your process, we’d be happy to share further insights or explore your specific challenges. Contact 33Floors for more information today.
