Closing expense accounts is a crucial step in preparing your books for the new accounting period. At the end of each financial cycle, all expense accounts—like rent, utilities, and salaries—must be reset to zero by transferring their balances to the income summary account. This process ensures accurate tracking of profits and losses. At Accounting.ProfitSpear, we simplify this step wi... https://accounting.profitspear.com/how-to-close-expense-accounts-a-simple-process/