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toddlerner
Level 4

end of year to do in quickbooks online?

hi, i have a small business, no payroll, and I won't be closing the year at end of year... is there anything I should do at the end of the year in quickbooks online? is there a checklist or something? thank you!  -todd

Solved
Best answer March 28, 2021

Best Answers
LieraMarie_A
QuickBooks Team

end of year to do in quickbooks online?

Nothing to worry about, @toddlerner.

 

If you opt not to clear the equity investment, drawings, and retained earnings, it's fine to leave it.  Clearing the balances means returning the account to a zero balance. Having a zero balance in these accounts is important so a company can compare performance across periods, particularly with income.

 

However, it would be best to ask for professional advice from your accountant about this to make sure your financial reporting accurate. If you don't have one, I can guide you in finding one.

 

Here's how:

  1. Visit the ProAdvisor site.
  2. Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
  3. You can also filter the service provided, industry served, and product supported to narrow down the results. 
    Capture.PNG

 

You can check out our QuickBooks Online year-end guide and checklist to make sure you complete your year-end tasks.

 

You're always welcome to post here anytime you have other concerns. Our door is always open to help you.

View solution in original post

10 Comments 10
Rustler
Level 15

end of year to do in quickbooks online?

QB is perpetual accounting, there is no accounting close the books to do except for clearing the equity investment, drawing and retained earnings accounts to owner equity using journal entries.

 

if

drawing has a balance, debit owner equity and credit drawing for the balance

investment has a balance, debit investment and credit owner equity for the balance

retained earnings has a positive balance, debit retained earnings and credit owner equity for the balance ( if that balance is negative, reverse the debits and credits)

toddlerner
Level 4

end of year to do in quickbooks online?

ty! Is there a how to anywhere for exactly how to do all of that? Thank you very much!

Maybelle_S
QuickBooks Team

end of year to do in quickbooks online?

Thanks for coming back to us, @Todd.

 

As the end of the year approaches, you'll have to complete certain tasks in QuickBooks Online to prepare for the new year. Use this guide to complete year-end tasks and end the year smoothly. Here's the link: QuickBooks Online year-end guide and checklist.

 

I've also added this article about closing your books: Close your books in QuickBooks Online.

 

Feel free to drop a comment below if you have other questions. I'm always here to help. Take care.

toddlerner
Level 4

end of year to do in quickbooks online?

Thank you, I just switched from QuickBooks desktop Mac to QuickBooks online and I had read that QuickBooks desktop Mac did some journal entries automatically for me at the end of the year, does QuickBooks online do journal entries automatically for me as well? Thank you!

ShiellaGraceA
QuickBooks Team

end of year to do in quickbooks online?

Thanks for getting back to us here, @toddlerner.

 

I'll share some information about creating automatic journal entries. As mentioned by our allstar, @Rustler, journal entries are made manually except the retained earnings, QuickBooks will automatically do it for you.

 

Check out this guide for details: How to view Retained Earnings account details.

 

If you need help with other tasks in QBO, check out this link to go to our general topics with articles. Just browse for responses that suit your concern.

 

Keep me posted if you still have questions or concerns with accounts. I'm always here to help. Take care and have a wonderful day ahead.

 

 

 

 

toddlerner
Level 4

end of year to do in quickbooks online?

Thank you, this is what I read in the manual for QuickBooks desktop Mac, does QuickBooks online to all of these transactions automatically as well?…

Year-end adjustments QuickBooks makes automatically

QuickBooks performs certain year-end adjustments based on your fiscal year start month.

  • QuickBooks adjusts your Income and Expense accounts at year-end to zero them out so you start your new fiscal year with zero net income.
  • QuickBooks makes an adjusting entry to your net income. For example, if your profit for the year was $12,000, the equity section of your Balance Sheet shows a line for a net income of $12,000 on the last day of your fiscal year.
  • 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.

 

 

MadelynC
Moderator

end of year to do in quickbooks online?

I’m here to share information with you about QuickBooks Online year-end process, @toddlerner.

 

In the Online version, Adjustments aren’t generated automatically. However, you can set the closing date under your Account and settings. From there, QBO automatically offsets transactions that are associated with the Retained Earnings.

 

You can check these resources for more information on how to view Retained Earnings account details and how to close your books.


For more tips and information to manage your QBO account, including your business finances, visit our support page. This contains resources, webinars, and training videos to help you learn more.


Don't hold back to drop a comment below if you have other account questions. We’ll be here to help. Take care!

toddlerner
Level 4

end of year to do in quickbooks online?

ty, I have a small company and I am just a soul proprietor And my accounting is very simple, and I don’t have to answer in anyone about equity or retained earnings or anything like that, and I never want to close my company. My question is: is there anything I really have to do at the end of the year? Or should I just not worry about it?

LieraMarie_A
QuickBooks Team

end of year to do in quickbooks online?

Nothing to worry about, @toddlerner.

 

If you opt not to clear the equity investment, drawings, and retained earnings, it's fine to leave it.  Clearing the balances means returning the account to a zero balance. Having a zero balance in these accounts is important so a company can compare performance across periods, particularly with income.

 

However, it would be best to ask for professional advice from your accountant about this to make sure your financial reporting accurate. If you don't have one, I can guide you in finding one.

 

Here's how:

  1. Visit the ProAdvisor site.
  2. Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
  3. You can also filter the service provided, industry served, and product supported to narrow down the results. 
    Capture.PNG

 

You can check out our QuickBooks Online year-end guide and checklist to make sure you complete your year-end tasks.

 

You're always welcome to post here anytime you have other concerns. Our door is always open to help you.

toddlerner
Level 4

end of year to do in quickbooks online?

ty!

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