Do I need to create an income summary / closing account in QBO?

Hi, angelacct.

Thanks for posting in the Community space. I can share some insight about a closing account in QuickBooks Online(QBO).

The income statement or summary is the same as the Profit and Loss report in QBO. QuickBooks won't automatically close the account unless you set up the Closing date in the Account and Settings.

Also, there's no need to create an income summary account since you can easily pull up the Profit and Loss report.

Here's how:

1. Click the Reports menu

2. Select Profit and Loss.

3. Enter the reporting period.

4. Choose the Accounting method.

5. Hit Run report.

Then, you can reach out to your accountant if there are reports you need when closing your books. Please see this resource for more info: Closing books in QBO.

Feel free to read these handy articles for your reference:

• How to view Retained Earnings account details.
• QuickBooks Online year-end guide and checklist.

Keep me posted if you have further questions about closing your books. I'll be around to help you. Stay safe!