A closing entry is an accounting process used to reset temporary accounts to zero at the end of a period. Why? This ensures your accounting records are ready for the next financial cycle. Think of it as hitting the refresh button for your accounts. Temporary accounts like revenues, expenses, and dividends need to start fresh every period to reflect only the current cycle’s activit... https://accounting.profitspear.com/how-to-close-expense-accounts-a-simple-process/