Year-end process
Close the financial year — Year-end Closing Process for owners and accountants.
What is this page?
Year-end posts closing journals, transfers net profit or loss to Retained Earnings, writes FY snapshots for balance sheet ledgers, and prepares books for the next financial year. Run only when the year’s vouchers are complete and reviewed.
Settings → Organization → Year-end process (/settings/profile/year-end-process).
Before you start
- All months’ Receipts, Payments, Expenses posted.
- Daily Register reconciled.
- Balance Sheet and P&L reviewed by CA.
- Opening balance posted if this is your first books-start year.
What you see on the screen
FY timeline, preflight checklist, and a three-step close wizard.
What you will see on the screen
- FY timeline — Open, Closed, Stale status per year.
- Preflight — whether closing is allowed (sequential FY order).
- Review balances — read-only closing → next-year opening grid.
- P&L close summary — year-end closing journals; net amount to Retained Earnings.
- Close — confirm and post year-end journals and FY snapshots.
Step-by-step: run year-end
Open Year-end process
Settings → Organization → Year-end process.
Read warnings
Review the preflight checklist and things to take care on the confirm screen.
Fix blocking issues
System lists prior-year order, opening balance, etc. — clear each item.
Review balances
Walk through the wizard review grid and P&L summary before confirming.
Close the year
Confirm on the final step → wait for Year-end closing process completed successfully.
Verify new year
Check P&L starts fresh, Retained Earnings reflects net profit/loss, and Balance Sheet carries balances forward.
What happens after year-end?
- Year-end closing journals transfer net profit or loss to Retained Earnings; all journal history is kept.
- New-year income and expense balances come from that year's transactions only (period-based, not FY snapshots).
- Net profit or loss is added to Retained Earnings (not split to owners during close).
- Owner capital can be updated separately from the owners screen when you are ready.
- Some date restrictions may apply to old year edits — policy dependent.
Tips
| Tip | Why |
|---|---|
| Export reports PDF before close | Permanent record |
| No counter staff during close | Avoid new vouchers mid-process |
| Run outside peak hours | Fewer concurrent users |
If something goes wrong
| Problem | What to do |
|---|---|
| Close blocked | Read on-screen validation list |
| Wrong balances in review | Reconcile ledgers before close; after close needs CA |
| Message failed mid-way | Do not guess — contact support with screenshot |
Technical reference
Cash and bank registers use subledger balance APIs (not party APIs). For implementation detail, API sequences, and balance formulas see the backend docs:
- Opening balance & year-end index — glossary and API index
- Implementation guide — flows, snapshots, QA