Close the Fiscal Year for Ledger

CAUTION: This process alters data. We recommend backing up your data before proceeding.

Before you close, make sure you 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
  1. On the Transactions tab, click End of Period > Close Period.
  2. Click Close Fiscal Year for Ledger.
  3. If the current month isn't the last month, you're prompted to advance the fiscal year. Click Yes to continue.
  4. If you haven't backed up your data, you're prompted to do so. Click Yes to continue.
  5. It's a good idea to run the Fix Data Discrepancies process at this time. Click Yes, then click Fix Data.
    • If any issues are found, print them for your reference. Click Close, then click Yes to address the issues.
    • Otherwise, click Close, then click No to continue.
  6. To continue the Close Fiscal Year process, click Yes.
  7. To complete the process, click OK.

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.