Financial years and periods

Your books are divided into financial years, each with 12 monthly periods. The first year is created with your workspace, starting in the month set in Settings (January unless you changed it).

Closing a month

When a month's books are final (for example, after the VAT return is filed), Close it. Nothing can then be posted to, or removed from, that month, by anyone or by any module. If something must change, Reopen it; both actions are in the audit log.

Closing a year

Close year does the year-end for you:

1. It posts a closing entry, dated the last day of the year, that moves every income and expense balance into Retained earnings.
2. It closes all 12 months.

Close years in order: an earlier open year must be closed first. Reopen the most recent closed year to remove its closing entry and reopen its last month.

Adding years

• Add next year creates the year after the latest one. Do this before the new year starts.
• Add earlier year creates the year before the earliest one, for example to record opening balances dated before your first year.