Closing the books is an important year-end task for any business owner or accountant. It involves finalizing your financial records for one fiscal year and preparing for the next. With QuickBooks Online, closing the books is a straightforward process. In this article, we will guide you through the steps to close your books.
Step 1: Review your accounts
- Sign in to QuickBooks Online as a primary or company admin.
- Review your accounts and make sure everything looks good.
- Enter any outstanding invoices, expenses, and payments.
- Reconcile your accounts up to your closing date.
- Review your inventory quantities.
Step 2: Close your books
- Go to Settings and then select Account and settings.
- Select the Advanced tab.
- Select Edit in the Accounting section.
- Turn on the Close the books switch.
- Enter a closing date.
- Select Allow changes after viewing a warning and entering a password from the dropdown menu if you want to require a password.
- Select Save and then Done.
Step 3: Prepare for the next fiscal year
After closing the books, prepare for the next fiscal year by setting up your accounts and budgets. This includes creating new accounts, setting up budgets, and updating payroll information.
When a new fiscal year starts, QuickBooks Online automatically adds the net income from the previous fiscal year to your Balance Sheet as Retained Earnings. Your Retained Earnings shows the total of your company's income and expenses for all previous years.
To sum up, closing the books in QuickBooks Online is a hassle-free task. By following the steps above, you can feel assured that your financial records are ready for the new fiscal year.
If you encounter any issues while closing your books, don't hesitate to reach out to our Support team for assistance, ask our Digital Assistant, or check the Support page for immediate answers.
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