Solved
How do I close out end of year.
I am new to Quick Books and have entered last years trail balance. Now I need to close out the year and can't find out where to do that
SkinnyRavenAnswer
Level 6
December 11, 2018
Year-end adjustments QuickBooks makes automatically
QuickBooks performs certain year-end adjustments, based on your fiscal year start month.
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QuickBooks adjusts your income and expense accounts at year-end to zero them out. Therefore, you start your new fiscal year with a zero net income.
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QuickBooks makes an adjusting entry to your net income. For example, if your profit for the year was $12,000, on the last day of your fiscal year the equity section of your Balance Sheet would show a line for net income of $12,000.
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On the first day of the new fiscal year, QuickBooks increases your Retained Earnings equity account by the previous year's net income ($12,000 in this example) and decreases your net income by the same amount. This way, you start each new fiscal year with a net income of zero.
[Moderator Note]
For more information on taxes, forms, filings, payroll and other Year End activities, make sure to check out our Year End Resources page.