Closing the Fiscal Year
In the system, there is no need to add financial year closing entry. System will calculate profit and loss on the run-time base and in Trial Balance report you will see 0 beginning balance for Revenue and Expense accounts. Their balances will be shown in Retained Earnings accounts in Beginning Balance column. If you go to transaction details of Retained Earnings account in Account Transactions report, you will see per financial year net profit (loss).