At the end of every accounting period, you must close the balances in your sales and expense accounts. You open the income summary account to hold these account balances during the closing process.

Learn how accounting spreadsheets work with real examples of journals plus when to switch to accounting software.

Closing entries are the journal entries recorded at the end of an accounting period to close out balances of income statement accounts and transfer them to the account of retained earnings in the ...

The double-entry system protects your small business against costly accounting errors. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you ...

Tracking your company’s spending is essential for maintaining accurate financial records. One financial accounting method businesses use is the payroll journal entry. Payroll journal entries record ...