Close the year

Move the year's profit or loss into equity.

At year end, a period closing voucher moves the balance of every income and expense account into an equity account, usually retained earnings. Next year starts with income and expenses at zero.

1. Finish the year's entries

   Post all invoices, bills, payments, depreciation and adjustments for the year, and reconcile your banks.

2. Start the closing voucher

   Type Period Closing Voucher in the search bar at the top of any screen and press Enter. Select Add Period Closing Voucher.

3. Choose the year

   Select the Company and the Fiscal Year. The Period Start Date and Period End Date fill in.

4. Choose the closing account

   Set Closing Account Head to your retained earnings account, and add Remarks.

5. Submit

   Select Save, then Submit. Processing runs in the background; the status shows Completed when it is done.