Tech Tip: Re-Close the Fiscal Year After Posting a Prior Year-End Adjustment?

After posting a prior year-end adjustment, do I need to re-close the fiscal year?

No, when you post a prior year-end adjustment that involves Income Statement accounts (e.g., revenues or expenses), AccountMate automatically adjusts the Retained Earnings account’s current year beginning balance.

If the prior year-end adjustment involves Other Comprehensive Income accounts, then AccountMate automatically adjusts the current year beginning balance of the Equity for OCI GL Account ID assigned to each Other Comprehensive Income account used in the adjustment.

If the prior year-end adjustment involves Balance Sheet accounts (e.g., liabilities or assets), then the balances are carried over to the current year.