Summary
This module explained how to create and manage your accounting periods and how to close a fiscal year. The year-end closing processes in Business Central are the final steps to be completed in a fiscal year. A company must close all the income and expense accounts to obtain a final income statement and balance for the year.
The year-end closing process closes all entries in Business Central. The Close Income Statement batch job transfers all general ledger accounts to a balance so that the company is ready for the next fiscal year. Balance sheet accounts carry their balance into the next year, and income statement accounts carry a zero balance into the next fiscal year.
Completing the year-end closing processes will make data separation and analysis easier. It will also simplify the process of reviewing the posted entries in the Chart of Accounts because the balances only reflect the current year's activity.