File lifecycle

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 really changes what happens.

About 5 min Prerequisite: an existing engagement Two mutually exclusive modes Updated October 26, 2026

When to roll forward

You roll forward at the end of a fiscal year, usually after the client's financial statements are finalized. In practice:

The finished engagement keeps its adjusting entries, worksheets, financial statements, everything.
A new engagement is created for the next fiscal year (for example 2025 → 2026).
The new engagement inherits what must persist (TB, configurations, per-client history) and starts from zero for what is specific to the fiscal year (adjusting entries, materiality).

Start the rollover

Two equivalent entry points:

On the client card, to the right of the “Engagements” card, click Roll forward to next year.
In the open engagement, click Roll forward to next year in the actions column of the finished engagement.

A window opens so you can choose how the new fiscal year starts.

Choose a starting mode

“Roll forward to next year” dialog

“Empty balance” mode

Use this mode for the classic compilation flow: you'll produce the financial statements at the end of the next year from a trial balance the client will send you at that time. Ledger doesn't populate opening balances: the new engagement's TB arrives empty of figures, but with the account structure of the previous engagement.

“Carry balances (auto-close)” mode

Use this mode for continuous bookkeeping: you're the accountant who enters the client's transactions throughout the year. Ledger then does the standard close:

Balance sheet accounts (assets, liabilities, equity): their ending balance becomes their opening balance for 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.

A retained earnings account must be mapped

The “Carry balances” mode requires a TB account linked to grouping UU17 (Retained earnings). Without it, Ledger shows: “No retained-earnings account (grouping UU17): can't auto-close net income. Add a retained-earnings account to the trial balance, or choose ‘Empty balance’.” Fix it by adding the account to the trial balance, or by changing a grouping in the engagement's Groupings tab.

Click “Roll forward”

The new engagement is created instantly, with the fiscal year that follows (for example 2026-01-01 → 2026-12-31 if the prior year ended on 2025-12-31). You are redirected to its card.

What carries over, what doesn't

Carried over automatically

The trial balance (structure: account numbers, descriptions, types, groupings, GIFI).

The N-1 balances (the comparatives for your current fiscal year).

In carry mode: the opening balance sheet balances + closed retained earnings.

The configuration of activated worksheets.

The capital assets, LTD and income taxes configurations (per client, persists).

The list of assets and loans with their history.

The engagement leads (partner, accountant, signatory).

Not carried over (to redo)

Adjusting entries (they are specific to the fiscal year).

Materiality.

Bank transactions and reconciliations dated before the new window.

Engagement letters (but an “Import (previous year)” button copies them on demand).

The investment income entered (each fiscal year has its own slips).

The engagement type (to confirm in the new engagement).

Close the fiscal year (optional but recommended)

Before or after rolling forward, you can close the fiscal year with the Close year button (top of the engagement page). Ledger asks you to confirm:

“Close and freeze this year? No write (transactions, adjustments, trial balance) will be allowed until it’s reopened.”

A closed fiscal year is frozen: no one can modify the TB, the entries or the worksheets anymore. That's the guarantee that the signed file won't change. You can reopen a closed fiscal year later if needed (Reopen year button). Reopening is handled cleanly: in general, there is nothing for you to do as the preparer.

After the rollover

Confirm the engagement type of the new engagement (“Compilation (CSRS 4200)”, “Financial statements (internal)”, etc.).
Check the engagement leads and change them if the team has changed.
In Empty balance mode: import the year-end TB when the client sends it to you.
In Carry mode: the new engagement's TB already shows the opening balances; start entering the year's bank transactions and adjusting entries.
Go to the engagement letters and use the Import (previous year) button if you want to start from the previous engagement's letter.

Frequently asked questions

I rolled forward, then realized I should have used the other mode. What do I do?

Delete the newly created engagement (Delete this engagement button; it asks you to type DELETE to confirm), then roll forward again with the right mode. Since the new engagement is empty, there is nothing to lose.

I do continuous bookkeeping, but the year-end dividend didn't close to the right place

Ledger closes the net income for the year to retained earnings, but declared dividends (which are not on the income statement) are already deducted from retained earnings when they are declared. Don't reverse them manually at rollover, or you would count them twice.

Can you roll forward several times in a row (2025 → 2026 → 2027) without having worked on 2026?

Technically yes, but avoid it: the “Carry balances” mode needs the ending balances of the fiscal year being rolled to build the opening of the next one. If 2026 is empty, the carry to 2027 will be empty too.