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m-konstantinou-o
Level 1
posted
‎September 18, 2024 06:39 AM
last updated ‎September 18, 2024 6:39 AM

Will it perform a year end close (transferring net income to retained earnings) when I close a period?

We are trying to just lock the period for a while since our books are being audited and then unlock the period to post taxes.
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Best answer September 18, 2024
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JamaicaA
QuickBooks Team
QuickBooks Team
‎September 18, 2024 09:02 AM

Will it perform a year end close (transferring net income to retained earnings) when I close a period?

Closing the books won't automatically perform a year-end close, konstantinou. I can clarify when the system moves your net income to retained earnings.

 

When a new accounting period begins, QuickBooks Online will only add the net income from the previous fiscal year to your retained earnings on the balance sheet. Meanwhile, closing the books protects your past transactions or data by preventing undesired changes before being levied. Therefore, finalizing the financial records for a specific term would not transfer account balances. In this case, you can lock the period to have your books audited and then unlock it to file taxes.

 

Please check these articles to learn more about electronic swapping and reviewing previous financial data:

 

 

Once settled, scan these references for your guide in tax preparations and getting your business ready for the coming year:

 

 

I am pleased to confirm how your account details will show when completing a financial year. Post further concerning taxes, and I’ll sprint back into action.

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3 Comments 3
JamaicaA
QuickBooks Team
QuickBooks Team
‎September 18, 2024 09:02 AM

Will it perform a year end close (transferring net income to retained earnings) when I close a period?

Closing the books won't automatically perform a year-end close, konstantinou. I can clarify when the system moves your net income to retained earnings.

 

When a new accounting period begins, QuickBooks Online will only add the net income from the previous fiscal year to your retained earnings on the balance sheet. Meanwhile, closing the books protects your past transactions or data by preventing undesired changes before being levied. Therefore, finalizing the financial records for a specific term would not transfer account balances. In this case, you can lock the period to have your books audited and then unlock it to file taxes.

 

Please check these articles to learn more about electronic swapping and reviewing previous financial data:

 

 

Once settled, scan these references for your guide in tax preparations and getting your business ready for the coming year:

 

 

I am pleased to confirm how your account details will show when completing a financial year. Post further concerning taxes, and I’ll sprint back into action.

Reply
m-konstantinou-o
Level 1
‎September 23, 2024 06:46 AM

Will it perform a year end close (transferring net income to retained earnings) when I close a period?

All well noted! Thank you very much for all the information provided.

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MarkAngeloG
QuickBooks Team
QuickBooks Team
‎September 23, 2024 09:23 AM

Will it perform a year end close (transferring net income to retained earnings) when I close a period?

Hi there, @m-konstantinou-o.

 

I'm pleased to hear that my colleague was able to resolve your issue. We truly value your experience and are dedicated to providing you with top-notch customer service.

 

If you have any additional questions or concerns regarding processing fees or anything else, feel free to reply to this post. I'm here to help whenever you need assistance. Wishing you a fantastic day!

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