---
title: "Calculate Beginning Balances for New Year"
slug: "calculate-beginning-balances-for-new-year"
tags: ["FrmBalancesAutoOrMan"]
updated: 2025-09-24T13:51:05Z
published: 2025-09-24T13:51:05Z
canonical: "www.procaresupport.com/calculate-beginning-balances-for-new-year"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://www.procaresupport.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Calculate Beginning Balances for New Year

Although it’s not necessary to formally “close” a year, you will want to calculate beginning balances for the new year, prior to running any overall financial reports for that year. When you calculate beginning balances, revenue and expenses are set back to zero and the difference between them (your profit or loss) is added to the equity account chosen under Account Assignments.

## Getting There

From the *Procare Home* screen go to *Configuration > System > Accounting Management > Expenses & Ledger >* dbl-click *Beginning Balance*. ![Image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/CalculateBeginningBalancesForNewYear_1203_1.png)

## Calculate Balances for New Year

1. At the *Beginning Balances* screen:
  1. If you have more than one region, click *Change Region* to select the region for these balances. ![Image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/CalculateBeginningBalancesForNewYear_1203_2.png)
  2. Click *New* (bottom center). ![Image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/CalculateBeginningBalancesForNewYear_1203_3.png)
2. At the *Period Ending Date* screen, select the last day of your prior fiscal year (like Dec. 31st) and click *Calculate*. If there is no *Calculate* button that means no balances have ever been set up. Follow the steps to Enter New Balances. ![Image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/CalculateBeginningBalancesForNewYear_1203_4.png)
3. Once the balances are calculated you’ll arrive at the *Beginning Balances Summary* screen. These balances are the starting balances on your financial reports for the following year. **Caution:** On rare occasions, you may be directed by your accountant to modify the balances. Changes will affect the beginning balances on your financial reports. To view or edit, dbl-click anywhere on the line (such as on the *Period Ending Date*), then click the *Edit* button. ![Image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/CalculateBeginningBalancesForNewYear_1203_5.png)
4. When you are finished, click *Exit*. **Important!** If you make any entry (in any module) dated prior to your most recent *Period Ending Date*, you MUST recalculate balances. To do so, delete that line from the main *Beginning Balances* screen and repeat the steps above. ![Image](https://s3.amazonaws.com/cdn.procaresoftware.com/pdfs/Support+Site+Images/Desktop/Expense+%26+Ledger/CalculateBeginningBalancesForNewYear_1203_6.png)

### How do I set up my calendar for the New Year?

You’ll want to set up dates for the months, quarters, and the year in your calendar. These dates will then be available to choose for certain types of reports, like the Receivable Journal Summary, Income Statement, Balance Sheet, etc., depending on which Procare modules you are using. See: [How to Set Up General Ledger Dates](/procare-desktop/docs/general-ledger-dates)