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The last step in performing year-end activities related to profit and loss accounts is to run the balance carryforward program. This process is crucial as it transfers the closing balances of profit and loss accounts to the next fiscal year. By running this program, the system ensures that all financial data is accurately reflected in the new fiscal period.

This step is indispensable because it finalizes the financial results of the previous year and allows for the proper recording of earnings and expenses in the upcoming period. If this step is skipped, there would be discrepancies in the financial reporting, which could lead to issues during audits or financial reviews.

The other activities, while important, typically occur prior to this step in the overall year-end closing process. Closing open invoices and adjusting previous periods are necessary preparations for finalizing accounts, and submitting financial statements for audit comes after the balances have been carried forward, as these statements will reflect the results after the year-end procedures are complete.