Performing Your Accounting Period Closing

Your accounting period end date has passed and you're ready to close it out. You can complete the Closing in just a few clicks from the Accounting > Closing page.

Once completed, the software automatically generates all the entries needed to close the accounts and carry them forward to the new accounting period (C/FWD). Revenue and expenditure accounts are zeroed out, and the result is automatically posted to the Opening Balance Equity.

Check out this article for a deeper explanation of how the accounting Closing works.

This article covers the following topics:

• When should you close your accounting period?
• Posting adjusting entries
• Closing in a few clicks

When should you close your accounting period?

To proceed with the Closing, the accounting period must have a status of ready to close, meaning:

• The end date has passed;
• The previous accounting period has been closed.

A Closing occurs when one accounting period ends and a new one begins.

While it's best practice to close your books promptly, it's not required to do so immediately. You can work on two accounting periods at the same time.

Posting adjusting entries

Before launching your Closing, a page walks you through all the checks you need to complete.

Adjusting entries can be posted at the end of the accounting period to fine-tune account balances before the Closing.

They allow you to, among other things:

• Check your opening balances if this is your first Closing on Springly. Getting these right sets a solid foundation for the current period and all future ones. See the article on the opening balance;
• Verify your cash accounts: bank accounts, petty cash, and e-wallet;
• Record timing differences: deferred revenue and prepaid expenses. See the article on recording deferred revenue & prepaid expenses;
• Optionally run an inventory count: inventory valuation. Inventory valuation requires an inventory to be created first. The unit value can then be edited from the Closing page. See the article on inventory valuation;
• Optionally record an Invoice not received (INR) or a Provision: this is done directly from the Closing page. See the article on recording an invoice not received.

A negative petty cash balance is the only issue that will block you from launching the Closing. You'll see a warning message if this is the case.

Closing in a few clicks

Once you've posted any necessary adjusting entries, you're ready to close.

The software automatically posts all C/FWD entries. Depending on the volume of entries, this may take a few moments.

You'll receive an email confirming that the Closing was successful.

Once your Closing is complete, review your updated documents — the Statement of Financial Position, Profit and Loss, and C/FWD Journal — which you can use to present the organization's annual accounts.