Fiscal Year Closing in Atlas

Fiscal Year Closing in Atlas

At the end of each fiscal year, Atlas helps you close the books by generating closing journal entries that transfer net income to retained earnings.

What Happens During Closing?

1. Revenue accounts (4xxxx) are zeroed out — debited to close
2. Expense accounts (5xxxx) are zeroed out — credited to close
3. Net income (Revenue - Expenses) is transferred to Retained Earnings (account 30200)
4. A closing journal entry is automatically created and posted

How to Close a Fiscal Year

1. Go to Atlas > Settings > Fiscal Years
2. Find the fiscal year you want to close
3. Click Close Year
4. Review the summary showing total revenue, total expenses, and net income
5. Confirm to generate the closing journal entry

Important Notes

• Make sure all journal entries for the period are posted before closing
• Draft or pending entries will not be included in the closing calculation
• The closing entry is automatically posted and cannot be reversed
• Once closed, the fiscal year is marked as locked — no new entries can be posted to closed periods

After Closing

• Opening balances for the new fiscal year are automatically carried forward
• Balance sheet accounts (assets, liabilities, equity) retain their balances
• Income and expense accounts start fresh at zero
• You can view the closing journal entry in the journal list with reference type "adjustment"