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Financial years and closing

Every transaction belongs to a financial year, and each financial year is split into monthly periods. Closing a month stops anyone from adding, changing or deleting transactions dated in it. Closing the year moves the year's profit or loss into retained earnings.

Financial years are managed in Settings › Financial Year.

The financial year you work in

When a company is registered, two financial years are created: the current one, from the current month to 31 December, and the whole next year (1 January to 31 December). Add the year after that before you need it: dates outside every financial year are refused with "No financial year covers this date; create it first."

The financial year the app is working in is chosen in Settings › Organization (the Financial Year field). New documents and most reports use it.

Adding a financial year

  1. Open Settings › Financial Year and click Add.
  2. Enter the Financial Year name (for example 2027) and pick the From Date and To Date from the calendars.
  3. Save. The monthly periods are created for you.

A financial year and each of its months start at 00:00:00 on their first day and end at 23:59:59 on their last day, so a document saved at any time on the last day still belongs to that year and month.

A financial year that already has transactions or documents can't be deleted.

Closing and reopening months

  1. On the financial year, click Show Monthly Periods.
  2. Click Close Month on a month when its work is finished (all invoices, bills and adjustments entered and checked).
  3. Click Open Month if you need to correct something later.

While a month is closed, any document dated in it is refused with:

The financial period is closed, you cannot proceed with this action.

This applies to saving, approving, editing and deleting, and to depreciation and opening balances dated in that period.

Closing the year

You can close a year once all its months are closed.

  1. Click the lock icon (Lock Financial Year) on the financial year. The Closing Financial Year panel lists your projects.
  2. Click Close Year for each project.

Closing a year for a project:

  • moves the balance of every income and expense account into retained earnings, so next year's profit and loss starts at zero, and
  • records the closing balance of every account; View Closing Details shows them (income/expense and opening rows).

Reopen Year reverses the closing for that project if you need to correct the year.

A typical year end: enter the last documents → run depreciation → check the trial balance → close the last month → close the year for each project → add the new financial year (if not added yet) and select it in Settings › Organization.