# Closing entry

> Closing entry — The year-end entry that zeroes every temporary account — revenue, expense, gains, losses, dividends or drawings — into retained earnings, so the new year's P&L starts at nil. Most ledger software performs it virtually.

Source: https://lopifi.com/glossary/closing-entry
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is closing entry?** In accounting, closing entry means the year-end entry that zeroes every temporary account — revenue, expense, gains, losses, dividends or drawings — into retained earnings, so the new year's P&L starts at nil. Most ledger software performs it virtually.

## Words this system refuses for it

- adjusting entry
- reversing entry

- **Category:** Close
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** retained-earnings, temporary-account, account, expense, revenue