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toddlerner
March 24, 2021
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end of year to do in quickbooks online?

  • March 24, 2021
  • 1 reply
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hi, i have a small business, no payroll, and I won't be closing the year at end of year... is there anything I should do at the end of the year in quickbooks online? is there a checklist or something? thank you!  -todd

Best answer by LieraMarie_A

ty, I have a small company and I am just a soul proprietor And my accounting is very simple, and I don’t have to answer in anyone about equity or retained earnings or anything like that, and I never want to close my company. My question is: is there anything I really have to do at the end of the year? Or should I just not worry about it?


Nothing to worry about, @toddlerner.

 

If you opt not to clear the equity investment, drawings, and retained earnings, it's fine to leave it.  Clearing the balances means returning the account to a zero balance. Having a zero balance in these accounts is important so a company can compare performance across periods, particularly with income.

 

However, it would be best to ask for professional advice from your accountant about this to make sure your financial reporting accurate. If you don't have one, I can guide you in finding one.

 

Here's how:

  1. Visit the ProAdvisor site.
  2. Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
  3. You can also filter the service provided, industry served, and product supported to narrow down the results. 

 

You can check out our QuickBooks Online year-end guide and checklist to make sure you complete your year-end tasks.

 

You're always welcome to post here anytime you have other concerns. Our door is always open to help you.

1 reply

Rustler
Rustler
March 24, 2021

QB is perpetual accounting, there is no accounting close the books to do except for clearing the equity investment, drawing and retained earnings accounts to owner equity using journal entries.

 

if

drawing has a balance, debit owner equity and credit drawing for the balance

investment has a balance, debit investment and credit owner equity for the balance

retained earnings has a positive balance, debit retained earnings and credit owner equity for the balance ( if that balance is negative, reverse the debits and credits)

    T
    toddlernerAuthor
    March 26, 2021

    ty! Is there a how to anywhere for exactly how to do all of that? Thank you very much!

    M
    Maybelle_S
    March 26, 2021

    Thanks for coming back to us, @Todd11_2.

     

    As the end of the year approaches, you'll have to complete certain tasks in QuickBooks Online to prepare for the new year. Use this guide to complete year-end tasks and end the year smoothly. Here's the link: QuickBooks Online year-end guide and checklist.

     

    I've also added this article about closing your books: Close your books in QuickBooks Online.

     

    Feel free to drop a comment below if you have other questions. I'm always here to help. Take care.

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