# End of Year - Transferring Net profit to Balance Sheet

At some point after each financial year, your balance sheet must be balanced by transferring the net profit (or loss) to equity in the general ledger. At all times within Accentis Enterprise, Assets = Equity + Liabilities + (Net profit/loss). Usually at the end of the year, the net profit or loss is journalled to equity so that Assets = Liabilities + Equity.

When you roll over from one financial year to another in Accentis Enterprise, it is very common to roll over to a new financial year before the final end of year profit transfer has been done. This is quite okay, but it will mean that you will usually have to log in to the prior year database to perform the journal and then bring the balances forward to the current financial year in a single, easy step as shown below.