Closing antries are neceisary at the end of each period to:

Encere that the congary compless with state lase.

Escure that all permanemp acroursts are desed to zevo at the end of each accounting period.

Ensere that marogement is aware of how well the company is operating

Cilculate net income or net loss for an accounting period.

Encere that tersporzy wcoounts begin each period with zero balances.