Close the financial year

Post the closing entry and lock the year's periods.

Closing the year moves the balances of all revenue and expense accounts into 3202 Current Year Result, so the new year starts with a clean income statement, and locks every period of the closed year so nothing more can be posted into it.

Steps

Make sure every invoice, receipt, payment and adjustment for the year is posted, and the trial balance is right.
Create next year in General Ledger → Fiscal Years → New Fiscal Year.
Open the year to close and click "Close fiscal year". A year-end closing entry is posted and all its periods are locked.
Set the new year as current with "Set current".

Note: Closing a fiscal year cannot be undone from the interface. Print the Income Statement and Balance Sheet first.

Good to know

Before closing December, finish the month-end work: run depreciation, process and post payroll, check the trial balance and file the VAT return.
Create next year before you need it, so that entries dated in January can be posted.
During the year you can close and reopen individual months from the year page; a period that belongs to a closed year cannot be reopened.

Common questions

What does the closing entry do?

It zeroes every revenue and expense account and posts the net profit or loss to 3202 Current Year Result. Balance sheet accounts, such as cash, customers and vendors, keep their balances.

I found a mistake after closing. What now?

You cannot post into a closed year. Record the correction in an open period of the new year with a journal entry, and keep a note of it for your accountant.

Last updated: 2026-10-26

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