Year End Procedures

Just as XETEX Xebra does not require a month-end close prior to starting work for the new month, the year does not need to be closed before starting work in the new year.  It is important to note, however, that the balance sheet for the new year will not be accurate until the prior year has been closed.  There will be no beginning balances for the Balance Sheet Accounts. The mechanical procedure of closing a year creates the beginning balances for the next year by resolving the Income Statement Accounts (Revenue & Expenses) into the retained earnings account.  The ending balances for the Balance Sheet Accounts (Assets, Liabilities, and Equity) are then moved to the beginning balance period for the new year.  The Income Statement Accounts all begin with a zero balance so they reflect only the activity for the current year.