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Year-end guide for QuickBooks Desktop

SOLVEDby QuickBooksQuickBooks Enterprise Suite25Updated April 05, 2022

Learn more about what you and your accountant will need to do in QuickBooks to close out the previous year and prepare for the new one.

It's never too early to get a head start on payroll. For more year-end info, see the Year-end Checklist for QuickBooks Desktop Payroll.

Select the correct month to start your fiscal year so QuickBooks can clear your ledgers (behind the scene), while you work on other year-end activities.

To review or change the first month of your fiscal year:

  1. From Company , select My Company.
  2. Select the pencil icon.
  3. Go to Report Information. Check if the first month of your fiscal year is correct to ensure your financial reports use the correct dates.

As the year ends, make sure your client base has up-to-date balances, billings, and payments.

To settle outstanding customer payments, run an Accounts Receivable Aging Summary or Detail report:

  1. From Reports, select Customers & Receivables.
  2. Choose A/R Aging Summary or A/R Aging Detail.
  3. Review the report to find any customers with outstanding balances.

Once you find outstanding balances, you can send statements to your customers.

To send a statement:

  1. From Customers, go to Create Statements.
  2. Choose the right A/R account. Note: QuickBooks displays the A/R Account field only when your chart of accounts contains more than one A/R.
  3. Check the statement date.
  4. Select the date period of the transactions.
    Note: You can specify the dates or you can include all open (unpaid) transactions as of the statement date.
  5. Choose the customers you want to print statements for.
  6. Choose additional options.
  7. Choose Print or E-mail, depending on how you want to send the statements to your customers.

To make reconciliation easier, make sure you don’t have any outstanding deposits.

The end of the year is the perfect time to take care of:

  • Outstanding bills you owe for the year
  • Outstanding credits, discounts, or products you owe from your vendor/s

To review and pay outstanding bills, run an Accounts Payable Aging Summary or Details report:

  1. Under Reports, select Vendors & Payables (or Vendor & Payables).
  2. Choose A/P Aging Summary or A/P Aging Detail.
  3. Check the report if you have outstanding bills to pay before the year ends.

It's a good practice to match your QuickBooks data to your bank accounts. This makes sure all transactions are correct, and your year-end reports display the correct financial info.

Before you reconcile, make sure to:

Run year-end reports to review the info, identify and resolve any possible issues.

To run year-end reports:

  1. From Reports, select Company & Financial.
  2. Select Profit and Loss and the Balance Sheet Standard, or any customized reports you may need.

It’s also important to understand how QuickBooks makes automatic adjustments at year's end, in preparation for the upcoming fiscal year.

Your accountant can provide expert advice on data input, help with your year-end process, and forecast your company’s financial future.

Work with your accountant using the Accountant's Copy. You can save the accountant's file locally, and it's also safe to share electronically using the transfer service.

Taxes are typically prepared by a company's accountant.

Sharing the Accountant's Copy file to your accountant gives them access to all the financial info they need to prepare and file your company's taxes. They can also make the necessary changes on it.

QuickBooks Desktop doesn't require you to close the books as part of the year-end process. However, it does offer the use of a closing date password to limit access to the closed accounting period.

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