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Close your books in QuickBooks Online

by Intuit Updated 3 weeks ago

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Learn how to close your books and prevent changes to past transactions.

When you're ready, close your books to prevent unwanted changes before filing your taxes. This locks your books so no one can edit your accounting data before the closing date.

This is an important step when you review the previous financial data. Closing your books ensures everything stays the way you want it to. It also prevents any accidental changes that could affect your financial reports.

Step 1: Review your accounts

  1. Sign in to QuickBooks Online as a primary or company admin.
  2. Review your accounts and make sure everything looks good.
  3. Enter any outstanding invoices, expenses, and payments.
  4. Reconcile your accounts up to your closing date.
  5. Review your inventory quantities.

Step 2: Close your books

  1. Go to Settings ⚙ and then select Accounts and settings.
  2. Select the Advanced tab.
  3. Select Edit ✎ in the Accounting section.
  4. Turn on the Close the books switch.
  5. Enter a closing date. Give yourself a comfortable deadline. You shouldn't need to edit any transactions before this date. Your new bookkeeping work will start after this point.
  6. Select the Allow changes after viewing a warning and entering a password option from the dropdown menu if you want to require a password before editing your closed books.
  7. Select Save and then Done.

Note: You can update a closing date as many times as you would like. For example, if you wish to close your books on a monthly basis, you can go in and update the date every month.

Next steps: Review your closed books

Get ready for year-end and check out our Year-end guide and checklist in QuickBooks Online.

What changes after year-end close

When a new financial year starts, QuickBooks Online automatically adds the net income from the previous financial year to your Balance Sheet as Retained Earnings. Your Retained Earnings shows the total of your company's income and expenses from all previous years. To learn more, see how to view Retained Earnings account details. Note that the Retained Earnings account is not the same as the Retained Earnings calculation that shows as a line item on the Balance Sheet.

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