Hello, I created company new fiscal year and closed income/expense accounts. Have been working in both years and now the outside accountant gave me year end adjusting entries which I have now posted. I am attempting to close the current fiscal year and I receive message to close income/expense accounts which makes sense except when I take a look at the trial balance all accounts now have the adjusting entry amts included already. If I run close inc/exp..won't that affect the retained earnings amount balance which appears to be correct at the moment? Should I have closed the current year and then posted the adjusting entries to prior year? I remember always closing after entries from accountant.

Hello Deb,

There are 4 short "Show me how..." videos that describe the year end process in Adagio Ledger. We recommend closing your year when you hand the general ledger to your accountant. The, when you receive the adjusting entries, you post them to the prior year using a Prior Yer Posting.

Thanks Andrew, but what should I do now that I have posting the entries already? Well its okay, I went and looked at the videos and next year I will make sure to close the year before the adjusting entries from auditor and then post to prior year. Those videos are so awesome! Keep up the good work guys

When the Next Year is open, then any transactions posted to the Current Year are automatically closed to retained earnings in the Next Year. Closing the year will not make any changes to the Trial Balance that you are printing in the Next Year, as the closed numbers are already reflected in those figures.

If you are concerned, then make a copy of your general ledger and close the copy before performing the task on your live data.