Hi,
In our business we buy water and pop for the office. I record it as Debit - Misc Expense, Credit - Cash. Do I need to close out this account every month? Or do I carry the balance over every month like I do the other accounts? I do not close out any other accounts monthly. If so, how would I do that? Thank you in advance.

No, you do not have to close the account at the end of the month.

If you keep all your other expense accounts open until the end of the fiscal year, there is no reason you can't do the same thing with this account.

Yap. I agree with CaptainForest, you don't need to close misc exp every month. It is treated like other normal expenses. It is closed at the end of each acctg year or fiscal year w/c ever the company is using.