All entries made from the individual modules post directly to the journal and journal entries post back to your modules, so you should never be out of balance between your reports and financials. Closing a month prohibits additional entries in that month.
To close a month, go to Company → Select Open Accounting Period. Any period below the highlighted period is considered closed and nothing can be added or edited unless the period is reopened. To change the open period, highlight the period you want to open and click OK. Reopening a closed month can be done as many times as necessary, but the person who is reopening the period needs to realize that any changes made could possibly change the financials.
Closing the Fiscal Year
Closing the year MUST be done before you will be able to work in the new fiscal year, as this function creates files for the new year. Closing the year also updates opening balances for the Balance Sheet accounts, as well as moving Annual Net Profit to the Retained Earnings account.
To close the year, go to Company → Close Fiscal Year. The year can be closed as many times as needed, and should be closed regularly while still making entries in the previous year to update the opening balances in the new year. This is the only time that the opening balances do not update automatically. This is especially important where checking accounts are concerned.