How to Close the Fiscal Year

At the end of your accounting year, you will need to close your accounting period to be ready for the next one.  Most companies would rely on their accountant to take this step for them. 

Before committing to a year end closing, make sure your accounting books are ready.  Close any sales tax period that may remain open inside of your accounting year. You will also need to reconcile each month in your accounting year before closing (see related guide Automatic Accounting).

Note: it is recommended to Include Historic Unclosed Entries upon closing the tax period.  

Use Year-End Closing to perform the procedure. IT IS NOT POSSIBLE TO UNDO A YEAR-END CLOSING, so be cautious that you are really doing what you want.

Open the year end closing feature either by typing "Close..." into the main search bar

or

proceed via Accounting -  - Close Fiscal Year

Notes:

Performing a year-end closing will set your working period start date to the first day of the new fiscal year.

Only two fiscal years can be open at a time.

When you perform a closing:

• • The closed period is locked (no further edits allowed)

  • The system automatically opens the next two fiscal years immediately after the closing end date

  • The length of the new fiscal periods will match the length of the closing period

During the closing:

• All income statement accounts are reset to 0.00

• The net profit or loss (income minus expenses) is posted to Retained Earnings on your balance sheet

• Your income statement will start fresh on the first day of the new fiscal year

• Your balance sheet will carry forward the opening balances into the new period