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AP-Zen
August 6, 2021
Question

Changing Fiscal Year End - Considerations

  • August 6, 2021
  • 2 replies
  • 0 views

Our company has operated on a fiscal year for ten years. On 7/1 we changed out corporate election to S Corp and changed our year end to calendar year.  So we have a short year from 7/1/20-12/31/20.

 

Are there any considerations before we change the year end in Quickbooks? We have a fiscal year end 6/30/20 then another year end at 12/31/20 and then the next year end will be 12/31/21.  Will QB make the correct closing entries for the partial year?

2 replies

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Nick K
August 6, 2021

Hi AP-Zen.

 

Having your fiscal years set up correctly is a great way to make sure your closing dates and balances are correct. I'd be happy to go over this with you.

 

QuickBooks Desktop makes closing your fiscal year easy so you can save time and get back to business. In order to make sure you set up and close your books correctly I recommend going over this article for closing entries and year end adjustments. Before closing your books however it's suggested to have an accountant go over your books to make sure everything is correct before closing. If you don't have an accountant no worries, we can help. You can go to our Find an Accountant page to find one in your area to help.

 

If you have any questions let us know and we'd be happy to help!

L
Linda187
June 16, 2023

I am in the opposite situation where we are moving away from the calendar year to a different fiscal year.  Moving to a July 1 - June 30 FYE this year.  So I have a shortened year - Jan - June 30.  How do I "close" the year so that QB does the year end adjusting entries automatically?  When do I make the change in the company information from first fiscal month to July?  If I make the change now, will it mess up my retained earnings because now QB thinks my fiscal year end is June 30? Any help would be appreciated.

 

Linda

 

H
Henock K
June 17, 2023

Hi Linda187,

 

Thanks for joining this thread. It's essential to correctly set up your fiscal year in QuickBooks Desktop to ensure that your books balance. I'd be glad to point you in the right direction to get the support you need.

 

I encourage you to reach out to an accountant. They will be able to help you change your fiscal year and close your books to ensure that your books are balanced and up to date. If you don't have an accountant, you can find one near you from Find a pro to help.

 

Let me know if you have questions, I'll be happy to help

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Linda187
June 17, 2023

Hi,

 

I am the accountant.  My question is about how QB works and what is the best approach when making the change in fiscal year end.  QB says it automatically makes the adjusting entries at year end.  My question is if I make the change now to the first month of the fiscal year to July 1 because now it thinks my fiscal year is July 1 - June 30?  Will QB books mess up my retained earnings from Dec 31, 2022?  I want to have a shortened year, and then have QB do the automatic adjusting entries for my new fiscal year.  This is not an accountant question, it a question about how QB functions.  Thanks.

 

Linda

 

 

  

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