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L
LakeEffect
December 20, 2023
Question

New Here

  • December 20, 2023
  • 2 replies
  • 0 views

Hello,

 

I am new here and wondering if anyone can help. We are starting to use QuickBooks starting January 1st, 2024, switching over from using outside companies to an in-house accountant and bookkeeper. The current companies are handling the 2023 taxes.

 

What do I need to do to be ready for the 1st of the year? We have all of our banking and payroll information complete - but what do I do to make sure our first of the year is clean and ready to go? Do I need to do anything to reconcile accounts? Or do I simply just beginning recording, categorizing expenses, etc? 

 

Please help!!

2 replies

J
JuliaMikkaelaQ
December 20, 2023

Welcome to the Community space, @LakeEffect. 

 

I'm here to share some information about managing your account in QuickBooks Online (QBO).

 

Since you will use the program next year, you have the option to record your transactions from the previous year or focus on the upcoming year with QBO. If you want to have a record of your previous transactions, you can add them manually in the program. 

 

Additionally, you can also enter them based on the bank statement by importing the transactions to QBO and categorizing and matching them with the records you previously added. Once done, you can proceed with reconciling your accounts for this year if needed. This will ensure you keep track of your previous year's transactions for audit purposes and safekeeping. 

 

Meanwhile, for payroll information, you can enter the prior payroll if you plan to process forms within the program. Please know that with this, you'll have to subscribe to our QuickBooks Online Payroll to have more features about payroll processes in your account. 

 

You can also reach your accountant to help and guide you with the manual processes so you will be ready for the next year. 

 

Additionally, I'll attach here some helpful articles and videos that you can view to get started and manage your account:

 

 

If you have other concerns with managing your accounts in QuickBooks, you're always welcome to share them here in the Community space. We'll be willing to provide you with the support you need in your new journey. Welcome aboard and have a great day!

4
4Gal
December 21, 2023

@LakeEffect 

switching over from using outside companies

 

Which software or application do they use?

L
LakeEffectAuthor
December 28, 2023

The prior bookkeeping company was also using Quickbooks online. My biggest worry is not having the prior year 'closed' out. Since we are not using the account I created for 2024 taxes, I don't know what information I will or will not need for 23. The information is already connect through our banking account which is resulting in more confusion for me. The previous company invited me to what they were using for us so I do have all of that information. 

R
rvrfrf
December 28, 2023

Thanks for following up with the Community, LakeEffect.
 

When you're ready to close out a year, you can close your books to prevent any unwanted changes before filing taxes. This locks your books so no one can edit the accounting data before your closing date.
 

Before closing your books, you'll want to review your accounts:
 

  1. Sign in as a primary or company admin.
  2. Review each account and confirm everything looks good.
  3. Enter any outstanding invoices, expenses, and/or payments.
  4. Reconcile the accounts up to your closing date.
  5. Review your inventory quantities.

 

After completing each step, you can close your books:
 

  1. Use the Gear icon, then go to Account and settings.
  2. Access your Advanced tab and use the Pencil icon for your Accounting section.
  3. Turn on your Close the books switch and follow the prompts to enter a closing date and any other necessary information.
  4. Select Save, then Done.

 

If you're not sure which account to use for something, or need help with tax related topics, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

I've also included a couple detailed resources about closing your books which may come in handy moving forward: 
 

 

If there's any additional questions, I'm just a post away. Have a great Thursday!

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