Closing The Year- Account 39005

[tracim10]

When Closing the Fiscal year a message comes up saying ( Closing to retained earnings account 39005) Is this the right account to be closing to & if not how do I change it. Thanks in Advance.

[Robert Walraven]

Yep. That's what closing the year is all about. Your total profits/losses for the previous year are totaled and added to your retained earnings (since the creation of the company). Then the income and expense accounts are reset to 0 at the beginning of the year so you can start all over again trying to get in the black for the current year.