Others: Is it necessary to perform year end closing every year?
Question: Is it necessary to perform year end closing every year?
Not doing Year-End Closing does not stop you from continuously using the software. That means you may keep several years of data in a single account book (database).
However, there are several reasons to perform year-end closing:
1.) To update the "Current Fiscal Year", Opening Balances, Last Year Balance.
2.) Reduce the size of account book. There is a size limitation of SQL Server Express edition and an account book that contains years of transactions tend to have larger database size.
3.) To improve the performance. When an account book accumulated (several years) huge number of records, performance will be affected, it will take longer respond time to open a document, to saving document or even inquiry report.
Note: After performing Year End Closing, the old data/transactions/records/entries that were completed (means with no outstanding) will be purged from the account book and not recoverable. Therefore, you must backup your account book before performing Year End Closing.
By:Michelle 170721, KM 170724; P170731
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