Closing the year

Check your Retainer Earnings account. The Retained Earnings account keeps track of your net income/loss from year to year. To close the year, you must have a Retained Earnings account.

You'll be prompted to enter the Retained Earnings account, which must be an equity account, when closing the year. Clients & Profits calculates the agency's net income by subtracting job costs and overhead expenses from total income. The amount of your profit is then posted to retained earnings, an equity (or "net worth") account. This is the same as manual entries which close income, costs, and expenses into retained earnings--it's just automated. Clients & Profits will prompt you if the account does not exist.

-- Retained Earnings is a separate Equity account, and is not the same as the Year-to-Date Profit account #999999.