Period-End & Year-End

Opening balances (going live)

When you start using the app, enter your prior system's closing trial balance as opening balances. Settings → Import → Opening Balances Journal generates a CSV of your postable accounts with debit/credit columns - fill it in, set the date (your go-live day, e.g. the last day before the new year), and import to post one balanced opening journal. It's rejected if debits ≠ credits. Roll prior drawings into equity if you wish. These post as source "opening" and are treated as your starting point (not shown in bank rec, not a 13th-month adjustment).

Locking periods & years

1. Go to Settings → Periods.
2. Click the lock icon next to a month once it's finalised, or "Lock Year" to lock all 12 months at once.
3. Any attempt to post, edit, or void a transaction dated inside a locked period is now rejected with a clear error message.

Unlocking (administrator only): if a genuine correction is needed, unlock the relevant period, post the correction, then re-lock it immediately. All lock/unlock events appear in the audit trail.

Year-end close & retained earnings

What year-end close does

Closing a financial year posts a journal that zeroes all Profit & Loss accounts (income, COGS, expenses) and sweeps the net profit into Retained Earnings (account 3-2000). After the close:

• P&L accounts start the new year at nil.
• Retained Earnings increases by the year's net profit.
• The Balance Sheet reflects only balance sheet accounts (assets, liabilities, equity).

Before you close - recommended checklist

1. Complete bank reconciliation for the final month.
2. Post all 13th-month adjustments: depreciation entries, accruals, provisions, prepaid adjustments - tick "13th-month / year-end adjustment" in the Journals editor so they are tagged separately from trading.
3. Run the BAS for Q4 (or the full year if quarterly) and lodge with the ATO via the Business Portal.
4. Check the Trial Balance balances (zero debit/credit difference).
5. Export the Accountant Export (Reports → Accountant Export) or individual financial statements for your tax return preparation.
6. Lock all 12 monthly periods for the year (Settings → Periods).

Running the close

1. Settings → Periods.
2. Click "Close Year" next to the financial year you are closing.
3. AcctApp posts the closing journal, locks the year, and opens the next year automatically.

Current Year Earnings (before close)

The Balance Sheet always shows a "Current Year Earnings" line in the Equity section equal to the year-to-date net profit. This ensures the Balance Sheet balances on any day of the year without requiring an interim journal entry. After the close, this line disappears and the amount is absorbed into Retained Earnings.

Retained Earnings after multiple closes

Retained Earnings (3-2000) accumulates the net profit of every closed year. You can post manual journals to this account for things like drawings, dividends, or partner profit distributions.

Year-end adjustments (13th month)

For accountant/audit adjustments at year-end (accruals, depreciation, provisions), use a 13th-month journal: in Journals, tick "13th-month / year-end adjustment", choose the financial year, and it auto-dates to the year-end and is tagged separately from real trading. Post these before the final close so they're swept into Retained Earnings. (See Day-to-Day → Journals.)