Closing an accounting period will update the opening balances in the next period and lock the period from the addition or deletion of records.
Step by step:
- Navigate to the accounting period tab.
- Accounting periods need to be closed in the order they were created.
- Select the accounting period you wish to close and click edit.
- Move the status from Open to Close.
- An email message will be sent to confirming that the period has been closed.
Please note the following with regards to the close:
- Closing the current period is necessary to report an accurate balance sheet for the month, but not necessary to report an accurate profit and loss report or trial balance. These reports can be run in the current month without it being closed.
- Only one accounting period can be closed at a time. If you try to close an accounting period while another period is in the process of being closed, you will get an error message.
- You cannot have prior open accounting periods when you are closing the selected accounting period. For example, if you are trying to close period 2015-12, 2015-11, any period before can not have a status of "open."