When Should I Close My Fiscal Year?

At the end of your fiscal year you have three options outlined below. Until you have completed one of the options, you will not be able to enter Accounts Payable or post any interfaces to the General Ledger for the new year.

Close the Year

  1. If you plan to do budget vs actual reporting, this is the most often recommended method.  
  2. Horizon recommends closing the year shortly after your year end.  
  3. When closing, use the Closing Mode "Close Year - Leave Open" and continue processing both the old and new year.  
  4. You can re-close the year as often as you need to.  
  5. Horizon recommends re-closing after each interface that has activity in the prior year.  After posting Journal entries to the prior year, re-close.  Then after audit entries are completed, close again.
  6. The close process will keep the next year's beginning balances up to date.  
  7. After your final approved audited close, you should not reopen the year again.

See Also: Close a Fiscal Year

Extend the Year

  1. You will not be able to do budget vs actual reporting for the new year with this method.  
  2. You may extend the year rather than close. This allows you to continue processing and GL reporting as if it was part of the past year.  
  3. Horizon recommends you extend your months up to the month that you expect to close the year. This is so you do not have to continue to change your extended periods each month.
  4. Always remember to rebuild GL Reporting for the year after adding or removing extended months.  

Create the New Year Without Closing

  1. Go to Utilities > End Year Process, close the year using the Closing Mode "Create Next Year Only".  
  2. This will quickly create the next year's accounting periods without closing the prior year.  
  3. With this method you may do Income & Expense budget reports. However, your new year balance sheet accounts will have a zero beginning balance until closing the previous year.
  4. You may close the previous year at any time and begin using method 1, or close the year after all audit entries are completed.

12/2024

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