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B
Bert2021
February 18, 2021
Question

Year-End Close-Out

  • February 18, 2021
  • 1 reply
  • 62 views

I have recorded my closing entries on the first day of the next year. So that I can continue to pull Trial Balance at the end of the year without losing my P&L balances. Closing them out would bring balances to zero.

 

Is there another way in QB to record close-out entries?

 

I read that QB automatically does those entries, I have not seen this....

1 reply

JenoP
JenoPQuickBooks Team
QuickBooks Team
February 18, 2021

Hi there, Bert2021. 

 

QuickBooks will automatically adjust your Income and Expense accounts at the end of the year to zero them out and you start your new fiscal year with zero net income. This happens when you close your books in QuicBooks Online. It essentially increases your Retained Earnings equity account by the previous year's net income and decreases your net income by the same amount. This way, you start each new fiscal year with a net income of zero.

 

Here's how:

 

  1. Go to the Gear icon ⚙ and select Accounts and Settings.
  2. Proceed to the Advanced tab.
  3. Click Edit ✎ in the Accounting section.
  4. Look for Close the books and slide the status bar to the right.
  5. Enter a closing date. 
  6. Select the Allow changes after viewing a warning and entering a password option from the drop-down menu if you want to require a password before editing your closed books.
  7. Click Save.

 

Let me share these articles with you for more details and reference:

 

 

Please don't hesitate to reach out to us again or reply below if you have follow-up questions. 

    C
    ChristyV
    January 24, 2023

    This was very helpful. After you take these steps and change the setting to your year end closing date and save. What do you do? Do you run your P&L and Balance sheet for year end records?

    K
    Kurt_MQuickBooks Team
    QuickBooks Team
    January 24, 2023

    Hi there, @ChristyV.

     

    It looks like you've already posted this in the same thread, and I've already provided a recommendation to guide you with what tasks to accomplish after changing the schedule for closing your books in QuickBooks Online (QBO). I'll be happy to route you to my response so you can proceed.

     

    See the link below to view my recommendation:
    https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-year-end-close-out/01/1200515/highlight/true#M175845

     

    Once again, thanks for dropping by here in the Community, @ChristyV. Hope to have you here again. Take care!

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