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How do I close a financial year?
Matthijs Meijers avatar
Written by Matthijs Meijers
Updated over a month ago

Before you can close a financial year, it is necessary to set a number of settings correctly. For new administrations, this is automatically set correctly when creating the administration. If the settings are not correct, you need to set them yourself.

Preparing for year-end closure

For administrations created after 31-12-2016, steps 1 to 3 have already been completed. Skip to Closing the year.

Create General ledger account

  1. Navigate to Settings in the left-hand menu;

  2. Create the following ledgers if they don't exists.

  • General Ledger Account 1:

    • Number: 2000;

    • Description: Kapitaal;

    • Type: Balance;

    • Account Type: Regular account;

  • General Ledger Account 2

    • Number: 9998;

    • Description: Overboeken resultaat jaarafsluting;

    • Type: Balance;

    • Account Type: Regular account;

Create journal

  1. Navigate to Settings in the left-hand menu;

  2. Choose Journals;

    Create the following journal if it doesn't exist:

  • Number: 42

  • Description: Year-End Closure

  • Type: Memorial

  • Contra Account: 9998 - Transfer result year-end closure

Setting up the settings

  1. Navigate to Settings in the left-hand menu;

  2. Fill in the following settings if needed:

  • Journal for year-end closing: 42 - Year-End Closure

  • Capital account for year-end closing: 2000 - Capital

Closing the year

To close the year follow the steps below:

  1. Navigate to Advanced in the left menu;

  2. Choose on the right for Close year;

  3. Click on Close year for the year you want to close;

    1. The following popup shows the profit, loss and balance of that year;

  4. To close the year enter your password in the popup and choose Close year;

  5. After closing the year the profit or loss is booked on the general ledger that is set at the bookkeeping settings.

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