"Closing the books" is a formal accounting procedure originating primarily in the days of manual accounting in paper ledgers. As others have pointed out, Gnucash carries out the necessary calculations in its reports so there is no real need to carry out the formal procedure.
For the (VERY COMMON) special case where the entity has exactly ONE "OWNER". In other words, when using gnucash for personal books, organizational books, and businesses which are sole proprietorships.
Otherwise NOT true. All the other possibilities for entities have more than one owner. They must track not only total equity but how that equity is divided among the several owners. In that case it will be necessary to do an actual close the books (close income and expense accounts to total equity) in order to distribute that change in equity to the equity account of each owner.
Michael D Novack _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
