Close the Fiscal Year for Ledger
CAUTION: This process alters data. We recommend backing up your data before proceeding.
Before you close, it's a good idea to process the fiscal year's reports.
You must close each fiscal year to finalize transactions and financial reports for that fiscal year.
The Close Fiscal Year process:
- Enters the net profit/loss total for each set of books to the retained earnings account for that set of books
- Adds the retained earnings to the prior year fund balance account
- Sets the beginning balance of the retained earnings account to zero
- Advances the Current column to the new fiscal year and creates a new Future column for the next year in the Actuals and Budgets sections of the Chart of Accounts window
- Deletes the fifth oldest year of information from the Actuals and Budgets sections of the Chart of Accounts window
- Sets the new actuals to zero in income and expense accounts
- Sets the total of the first month of the new fiscal year to the ending balance from the prior year in asset and liability accounts
- Advances the fiscal year in the Initial Setup window
After you close the fiscal year, transactions from that year can't be modified. To change a transaction from a closed period, you must void the transaction, which creates a reversing entry in the current fiscal year.