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

• entered all transactions and adjustments as instructed by your accountant
• checked with your accountant to ensure no further entries are required in the company file for the current year.

If you've done all of the above, you're now ready to close the financial year. Note that you can’t enter new or edit existing transactions in a financial year once you've closed it.

When you close the financial year:

• 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.