Closing a Period

Closing a period finalizes the financial data for that month, preventing further changes and locking the numbers for reporting.

Why Close Periods?

Period closing provides:

• Data integrity - Prevents accidental changes to finalized data
• Audit readiness - Locked periods satisfy audit requirements
• Accurate reporting - Historical reports remain unchanged
• Clear boundaries - Everyone knows when data is final

Before Closing

Complete these tasks first:

• All transactions for the period are entered
• Trial Balance shows balanced (debits = credits)
• Bank reconciliations are complete
• Review P&L for any missing entries
• Accruals and adjustments are recorded

Caution

Once closed, you cannot post new entries to the period without reopening it.

Closing Process

1. Navigate to Period Close

   Go to Reports → Period Close from the sidebar, or click the “Review & Close” button in the dashboard banner.

2. Review Current Period

   The page shows your current fiscal period status and closing preview.

3. Review Closing Preview

   Before closing, review:

   • Total revenue and expenses
   • Net income/loss calculation
   • The closing journal entry that will be created

4. Click “Close Period”

   When ready, click the close button.

5. Confirm

   Acknowledge that you’ve completed the period-end checklist.

What Happens During Close

When you close a period:

1. Status changes to “Closed”
2. Entries are locked - No new posts allowed
3. Event is recorded - Audit trail shows who closed and when
4. Reports are frozen - Historical reports won’t change

Year-End Close

The final period of the fiscal year has additional steps:

1. Close Period 12 (or your final period)
2. System calculates net income
3. Closing entry transfers net income to retained earnings
4. Income and expense accounts reset to zero

Note

The year-end closing entry is: Debit Revenue accounts, Credit Expense accounts, and the difference to Retained Earnings.

Period Close Checklist

Task	Description	Done?
Enter all invoices	All sales recorded	☐
Enter all bills	All expenses recorded	☐
Record payroll	Salaries and wages	☐
Depreciation	Monthly depreciation entries	☐
Accruals	Prepaid expenses, accrued revenue	☐
Bank reconciliation	All accounts reconciled	☐
Review Trial Balance	Debits = Credits	☐
Management approval	Sign-off on numbers	☐

Best Practices

1. Close promptly - Within 5-10 business days of month-end
2. Document adjustments - Note any unusual entries
3. Keep checklist - Standardize the close process
4. Communicate - Let the team know when the period is final