> For the complete documentation index, see [llms.txt](https://now-8.gitbook.io/now.-features/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://now-8.gitbook.io/now.-features/reports-and-period-close/close-books.md).

# Close Books

Closing your books locks a completed accounting period to prevent accidental changes to historical records. It's a best practice that keeps your books clean, consistent, and audit-ready.

#### What Closing Does

When you close a period:

1. **A closing journal entry is created** that records the net income for the period and rolls it into Retained Earnings.
2. **All transactions and journal entries on or before the closing date become locked.** Any attempt to edit, categorize, or delete a locked record triggers a warning.
3. **The lock date is set.** now. remembers the closing date and protects all data up to that point.

#### How to Close Your Books

1. Tap your **profile icon** on the Transactions screen to open the side menu.
2. Select **Close Books**.
3. If your fiscal year start month hasn't been set, set the **first month of your fiscal year**.
4. Choose a **closing date** — the last day of the period you want to lock.
5. Tap **Close Books** and confirm.

#### Requirements

Before you can close, now. checks several things:

**Plaid's Historical Load Must Be Complete**

If you've recently connected a bank, now. is still pulling older transactions in the background. Close Books is disabled while the load is in progress, with the message **"Historical load in progress. Close Books after completion."** Closing before all transactions arrive would lock incorrect totals.

If the load hasn't finished within 24 hours, this restriction lifts automatically.

**Opening Balance Equity Must Be Resolved**

The **Opening Balance Equity** account tracks the starting balances when you connected your bank accounts. If the account still has a balance through the closing date (more than $0.01 in either direction), the **Close Books** button is disabled.

To resolve OBE, create a manual journal entry that moves the balance to the appropriate equity account (for example, Owner's Contributions or Retained Earnings). Talk to your accountant if you're unsure where it should go.

**New Closing Date Must Be After the Previous One**

If you've already closed a previous period, the screen shows the current lock date as **"Books closed through \[date]"**. Your new closing date must be after this.

#### After Closing

**Locked Transactions and Entries**

Anything dated on or before the closing date is now locked. If you try to edit or delete a locked record, you'll see a **Closed Period Warning**. You can choose to:

* **Cancel** — Leave the locked record unchanged.
* **Continue** — Override the lock and make the change. The change is tracked as a **Prior Period Adjustment**, preserving the integrity of your closed-period reports while still allowing necessary corrections.

**Fiscal Year and Reports**

Closing affects how reports calculate retained earnings. Net income from closed periods rolls into **Retained Earnings** on the Balance Sheet, keeping your equity section accurate across fiscal years.

#### Important

* **Closing your books is final.** Make sure all transactions are categorized, reconciled, and reviewed before closing.
* We recommend reconciling all bank accounts for the period before closing.
* Review your Profit & Loss and Balance Sheet for the period before closing to make sure everything looks right.
* You can close one month, one quarter, or any custom period — whatever fits your workflow.

#### Related

* Reconcile
* Journal Entries
* Reports
* Connecting Your Bank


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