In This Chapter
Wrapping up General Ledger accounts
Looking back through customer accounts
Checking for unpaid vendor bills
Clearing out unnecessary accounts
Transitioning into a new accounting cycle
In bookkeeping, an accounting period or cycle can be one month, a quarter, or a year (or any other division of time that makes business sense). At the end of every accounting period, certain accounts need to be closed, while others remain open.
Just as adding accounts to your bookkeeping system at the beginning of a year is best (so you don’t have to move information from one account to another), waiting until the end of the year to delete any accounts you no longer need is also a smart idea. With this approach, you start each year fresh with only the accounts you need to best manage your business’s financial activities.
This chapter explains the accounts that must be closed and restarted with a zero balance in the next accounting ...