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Close the financial year

Before closing a financial year, make sure you've:

If you've done all of the above, you're now ready to close the financial year.

Also, you don’t need to close your financial year at any particular time. You can continue to use your company file after the last month of your current financial year.

When you close the financial year no transactions are affected, but the following will occur:

  • The monthly totals for all accounts are changed to last year categories. If last year amounts already existed, those amounts will be replaced.

  • The balance of your current-year earnings account is transferred to your retained earnings account.

  • The balances of your income, cost of sales, expense, other income and other expense accounts are returned to zero.

  • The new financial year will be started in your company file.

Financial year FAQs