Closing the P&L Statement Accounts
After you are certain all your income, costs, and expenses have been properly allocated to the appropriate accounts, you should do a trial balance and check your work just like you would at month-end. If everything balances, then you can zero out the accounts in the P&L statement.
If you are using a computerized system, you don’t have to do the actual entry. The system will close the books automatically after you indicate you are ready to close them. You should be sure you back up your work before attempting to close the books for the year. You also should print out a general ledger report before ...