Roll a file forward to the next year
Rolling forward creates a new engagement based on the one just closing. Ledger offers two ways to carry balances : one for the classic compilation flow (empty balance, re-imported at year end), one for continuous bookkeeping (ending balances become the opening, net income is automatically closed to retained earnings). The choice actually changes what happens.
When to roll
At the end of a fiscal year, typically after signing the client's FS. Concretely :
- The finished engagement keeps its adjusting entries, worksheets, financial statements, everything.
- A new engagement is created for the next year (e.g. 2025 → 2026).
- The new engagement inherits what must persist (TB, configurations, per-client history) and resets what's engagement-specific (adjusting entries, materiality).
Trigger the rollover
Two equivalent entry points :
- On the client card, right of the « Engagements » card, click Roll forward to next year.
- Inside the open engagement, click Roll forward to next year in the actions column of the finished engagement.
A dialog opens to pick the starting mode of the new year.
Pick a starting mode
Roll forward to next year
Creates a new engagement based on this one. Ending balances become the comparative N-1.
« Empty balance » mode
Use this mode for the classic compilation flow : you'll produce financial statements next year from a balance the client will send you then. Ledger doesn't populate opening balances, the new engagement's TB starts empty of numbers but with the structure of accounts from the previous engagement.
« Carry balances forward (auto close) » mode
Use this for continuous bookkeeping : you're the accountant entering the client's transactions throughout the year. Ledger does the standard close :
- Balance sheet accounts (assets, liabilities, equity) : the ending balance becomes the opening balance of the next year.
- Income statement accounts (revenues and expenses) : reset to zero.
- The prior year's net income (loss) is automatically posted to the retained earnings account.
« Carry balances forward » requires a TB account linked to grouping UU17 (Retained earnings). Without it, Ledger shows : « No retained earnings account (grouping UU17) : cannot auto-close net income. Add an RE account to the TB, or choose Empty balance. » Fix by adding the account, or by changing a grouping in the engagement's Groupings tab.
Click « Roll »
The new engagement is created instantly, with the year that follows (e.g. 2026-01-01 → 2026-12-31 if the prior year ended 2025-12-31). You are redirected to its card.
What carries over, what doesn't
Close the fiscal year (optional but recommended)
Before or after rolling, you can close the fiscal year with the Close fiscal year button (top of the engagement page). Ledger asks to confirm : « Close and freeze this year ? No accounting entry (transactions, adjusting entries, ledger) will be allowed until it is reopened. »
A closed engagement is frozen : no one can modify the TB, entries, or worksheets. That's the guarantee the signed file won't move. You can reopen a closed engagement later (button Reopen engagement).
After the rollover
- Confirm the engagement type of the new engagement.
- Check leads and update if the team changed.
- In Empty balance mode : import the year-end TB when the client sends it.
- In Carry mode : the new engagement's TB already shows opening balances ; start entering the year's bank transactions and adjusting entries.
- Use the Import (prior year) button on letters if you want to start from the previous engagement's version.