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Selye
Level 1

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?

2 Comments
gayatriluthfias20
Level 6

What bookkeeping steps should be taken when a business is closing permanently due to the pandemic

Hi @Selye , Here i give you article about what a task to close a business . 

Before close company you must close your books in QuickBooks Online:

  1. You need to click the Company name (gear icon), in the upper-right-corner
  2. Select Account and Settings
  3. Go to Advanced tab
  4. Under Accounting, put a checkmark in the Close the books box
  5. Enter the Closing date
  6. Set whether or not a password is needed to change closed transactions
  7. Click Save
  8. Click Done

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.

Rustler
Level 15

What bookkeeping steps should be taken when a business is closing permanently due to the pandemic

To answer your question

Sell at whatever price any inventory and fixed assets

Pay off all debts

Collect all open invoices

Pay off sales tax, and get a release from the sales tax agency for the owner showing the account is closed and there is no due sales tax.

File a final return for income tax, state and federal.

Distribute equity to the owners

 

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