Close a Financial Year

When you close a period, your data (such as the GST and QST collected during that period) is recorded and saved. If I close my periods every month, I end my fiscal year with twelve periods.

At the end of a fiscal year, it is necessary to close it. This means that the data from the previous periods—i.e., from my year—are recorded and saved so that I can start fresh and begin a new fiscal year.

Let’s imagine we are in 2020, my fiscal year ends on December 31 each year, and I close my periods monthly. When I close the last period of the year, I must also close my fiscal year. I follow the period closing steps and select December 31, 2020, as the date. However, this time, I check the box Corresponds to a financial year end before clicking OK.

The closing of my December 2020 period will appear with the other closed periods in the list of closed periods, and my fiscal year will also be closed. I can now begin a new fiscal year—2021. On January 31, 2021, I will close the first period of the year, and so on until December 2021.