In Breeze, closing the year is automatic. As soon as you close the last month in the fiscal year, the year is closed. By default, the fiscal year ends in December, but you can select another Fiscal Year End on the Property screen.
If you use the automatic task to close each month, the month and year are closed automatically when the task closes the last month in the fiscal year.
Closing the year clears general ledger income and expense account totals, and carries forward balances in assets, liabilities, and capital accounts.
Retained Earnings at Year End
As part of your year-end procedures, you should transfer current year retained earnings to prior years retained earnings. If you don’t transfer prior year earnings to a separate account, the retained earnings account will not be accurate for the current year.
In the Breeze chart of accounts, Retained Earnings is a unique G/L account. It is a calculated value, the sum of income minus expenses. For example, if you receive 50,000.00 in rent to a property in a period and you pay 10,000.00 in expenses for that same property during that period, retained earnings equals 40,000.00.
Prior Years Retained Earnings is a separate G/L account. In the default chart of accounts, Retained Earnings is 3800, and Prior Years Retained Earnings is 3810.
