Solved
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.
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:
- File your sales tax return and record sales tax payments in QuickBooks Online
- Year-end guide for QuickBooks Online
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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