Income and Expense accounts need to zero out to your Equity (Capital) accounts when you complete your fiscal year. The PCLaw^® Software automatically zeros out your Income and Expense accounts and adjusts Equity when you use the End of Year feature.

Before you close the year, submit your financial statements to your accountant and document any changes that they require.

Take the following steps to close the fiscal year:

1. Make a backup of your PCLaw data.
2. Run Verify Data Integrity.
3. Reconcile all bank accounts for each month through the end of the fiscal year.
4. Reconcile the balances that appear on the Client Ledger, Billing (Fees) Journal, and General Ledger to each other.
5. Review your 1099 Listing and produce 1099 forms for your vendors (US only).
6. Close all months except the last month of the fiscal year.
7. Enter G/L adjustments from your accountant on the last day of the fiscal year.
8. Use the following features to analyze your budget figures and make changes if you need to adjust your budget for the next year (PCLawPro only):
Lawyer Budgeting
General Ledger Budgeting
9. Close the last month of fiscal year.
10. Make a back up of PCLaw.
11. Close the year.
12. Update Chart of Accounts if you need to add or change G/L accounts.

Just In Time Training for the PCLaw Billing and Accounting Software
End of the Year - Retained Earnings Chart