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Closing Journal Entries

I am a cash basis entity, but QuickBooks made my closing entries in correspondence with accrual basis reports.  Is this how it should be, if not how do I correct it?

3 Comments
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Re: Closing Journal Entries

Welcome to the Community, Beth Renee.

Allow me to share some insights about closing journal entries via QuickBooks Desktop.

 

The journal entries of the Close Books feature are posting transaction which means this may not matter if it's cash or accrual basis. 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.

 

You can get more details in this article: https://quickbooks.intuit.com/community/Reports-and-accounting/Close-your-books-in-QuickBooks-Deskto....

 

However, if you need further help with QuickBooks you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.

 

To reach us, please follow these steps:
 

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
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Let me know if any questions may arise while working in QuickBooks Desktop.

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Re: Closing Journal Entries

@Beth Renee

 

QB does accrual based accounting, there is no option

it reports on cash basis if you want that

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Re: Closing Journal Entries

This isn't even a Real Entry: "but QuickBooks made my closing entries in correspondence with accrual basis reports"

 

It's the Math of your Net Income. So, you run the reports on the Basis you want, to see the Data in the perspective you want.

 

On the first date of the new fiscal year, there is the Closing Entry of the final Net Income to Equity, so that income and expense start over. That's not an actual entry at all. If you were to make some year end entries from the tax prep, that Value will change.

 

Run your reports on Both Basis, to see this. Al lot people think of Manual Closing, and adjustment for Cash vs Accrual, and you do None of This in QB. You simply change the Basis in Customize Report.

 

Please see my attachment.

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