What bookkeeping steps should be taken when a business is closing permanently due to the pandemic
I just received word that one of my clients is closing permanently (small bakery). I am so sad that this pandemic has forced this decision. What is a list of bookkeeping tasks for closing the business?
Before close company you must close your books in QuickBooks Online:
You need to click theCompanyname (gear icon), in the upper-right-corner
SelectAccount and Settings
UnderAccounting, put a checkmark in theClose the booksbox
Enter theClosing date
Set whether or not a password is needed to change closed transactions
In the end, minimum you'll print out the report; P&L, balance sheet, sales tax payable, cash flow, inventory valuation summary, customer and vendor balance reports, for each year of business or export them in excel. When every thing done, to close company you could click file>close company.xomment back, cheers.