[GNC] Closing Books - Pros & Cons

[Jesse MacDougall]

Hi Ryan I am pro accountant.

Closing books means no one can post for that period anymore. So u close
books once your have completed your final review and maybe got some entries
from an accounting firm like me. You probs dont need an accounting firm
though so once all your transactions are in and your cash account agrees to
your bank account you now make your year end entries. Then close.


You dont create a new set of chart of accounts. They roll forward each
year. I think of chart of accounts as the framework of a skyscraper
building being built. Chart of accounts are your financial infastructure.

On Mon., Jan. 3, 2022, 10:31 Ryan Carver, <ryan at 6040design.com> wrote:

> Hi All,
>
>
>
> I am using Gnucash for my small business (a design consultancy) and I have
> no experience or knowledge of accounting.
>
>
>
> Could someone please explain the PROs & CONs of using the “Close Books”
> feature in layman’s terms?
>
>
>
> The online database states that using the “Close Books” tool will result in
> some report inaccuracies.  Could someone elaborate on which reports would
> result in inaccurate reports?  I ran a few test reports after using the
> “Close Book” tool and I did not notice any report inaccuracies.
>
>
>
> Given my limited accounting knowledge it only seems intuitive that one
> would always want to reset their chart of accounts for each fiscal year so
> you can quickly see the correct period totals for each account.
>
>
>
> What does everyone else do when starting a new fiscal year?
>
>
>
>
>
> Thanks,
>
> Ryan Carver
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