Closing a financial year

# Closing a financial year

Closing a year in Pop Books means locking each month, then keeping the locks in place. Each month is closed on its own, from the oldest month forward.

Locking periods

1. Open the month-end checklist for the month.
2. Clear every item that blocks closing. Draft entries and an unbalanced book block it.
3. Choose Close for the month. The month is locked through its last day.
4. The checklist is written to the edit history, with the date and who closed the month.

A lock stops posting into that period. It cannot be removed or changed. The product will not let you reopen a closed month.

No year-end entry

Pop Books does not post a closing entry at year end. Income and expense accounts keep their balances in the same book. The balance sheet shows the profit to date in the equity section. You do not need to carry balances into a new year, because the books are one continuous set.

Opening the next year

There are no opening balance entries to make for the next year. Start posting in the new year when the first month is open. Set the fiscal year start in the company settings if your country uses a different start.

Correcting a closed period

You cannot change a posted entry. To correct it:

1. Reverse the entry. The reversal is dated in a month that is still open.
2. Post a new entry for the correct amount, also dated in an open month.
3. Write the reason in the memo.

If the correction changes a closed year, ask your accountant before you post anything. A prior-period adjustment can have tax effects.

Checking before you close

• The trial balance debits equal the credits.
• The balance sheet shows what you expect.
• The edit history is intact. The checklist blocks closing if the history has a gap.