Do my customers’ balances get carry forwarded to the next financial year automatically? 

Yes, your customers’ balances will be carry forwarded to the next financial year. To view a customer balance: 

• Go to the Contacts module in the left sidebar. 
• Select the customer for whom you wish to see the customer balance. 
• Click the Statements tab. The Opening Balance in the Customer Statement for the current fiscal year will display the overall unpaid amount of that customer.