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Does Quickbooks process automatically the year-end close, or do you have to do this with journal entries?

Forum|Forum|5 years ago
May 3, 2021
2 replies
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QuickBooks Online

Best answer by GeorgiaC

No problem and thanks for getting back to me rutter-primeman-, yes you're correct, the income and expense accounts will reset to zero, you can double-check this by running the PL report for the new financial year and this should only contain balances for transactions dated in the current year. 🙂

A

Ashleigh1

Level 14

Hello Rutter-primeman-

Welcome to the Community page,

So Quickbooks just keeps on running it doesn't do a year end, you would just need to run the necessary reports for the required dates so it shows you just the information you need to see and know about and you can also customise the reports too, by click on customise,

R

rutter-primeman-Author

Thank you for this information. So I guess I will just have to create journal entries to clear all the profit and loss accounts to the retained earnings account - just like the old-fashioned pre computer days. Not a big deal, but disappointing in that all the previous computer accounting systems I have used do these postings automatically.

G

GeorgiaC

Level 13

Hi rutter-primeman-

Apologies for any misinformation, at the year-end (as determined by the 'First month of financial year' set in the advanced settings) QuickBooks Online automatically swaps funds from your net income or loss into the retained earnings account which can be viewed on the balance sheet of the new FY - please click here to see the full details of this process and reports that you can run to cross-reference this balance. 🙇‍♀️

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rutter-primeman-Author

Many thanks again for this information. Sorry to go on, but does this also mean that all the profit and loss accounts balances re automatically set to zero (i.e. the balances posted to retained earnings account)? This should be the case, so hopefully this does happen.

G

GeorgiaCAnswer

Level 13

No problem and thanks for getting back to me rutter-primeman-, yes you're correct, the income and expense accounts will reset to zero, you can double-check this by running the PL report for the new financial year and this should only contain balances for transactions dated in the current year. 🙂

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