Closing Entries

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Purpose: To produce your annual closing entries at the beginning of the new fiscal year or when the auditor has provided the auditor adjustments. 

The "Set Accounts For Closing Entries" will open

• Enter the Date of the Closing i.e., the last day of the Fiscal Year
• Select your Retained Earnings Account (default to the account set in the Chart of Accounts)
• Select your Reserve Fund Balance Forward Account (default to the account set in the Chart of Accounts)
• Click Closing Entries.

The system will automatically create the closing entry journal entries in the General Journal.

Note:  Once auditor adjustments are completed, reverse the closing entries in the General Journal and redo the Closing Entries process again. If you are only making adjustments to expense accounts, you are not required to reverse the closing entries; repeat the closing entries process.