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:

The year end closing will set your working period start date to the first date in the new fiscal year.
The closing procedure will balance all income statement accounts to 0.00 and post the difference between income and expenses to the retained earnings in your balance sheet. The income statement on your first day of the new year will then be empty and your balance sheet will show the opening balance for the new year.