Close Previous Year - Nominal

As discussed previously the nominal ledger (and cashbook) covers two financial years – a current year and a previous year. You close the previous year once all postings and reports have been completed for that year, typically as you send the accounts of to your auditor or after they have sent you the adjustments to make.

To give an example – if your current financial year is 01/01/2006 to the 31/12/2006 then when you close the previous year you are closing the year up to 31/12/2005.

Reply ‘Yes’ to close the previous year when you select this option, ‘No’ to leave the year open.