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arkvalleyinfo
Oct 16, 2018 12:39 AM UTC
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How do I close the prior years books to send to the accountant?

I want to close accounts (lock them) and send to accountant for the prior year. How do I do that?

JamesDuanTAnswer
Oct 16, 2018 12:39 AM UTC

Hi leith,

Here's how to close the books in QuickBooks Online:

  1. In the upper-right corner, click the Company name (gear icon).
  2. Select Account and Settings.
  3. Go to the Advanced tab,
  4. Under the Accounting section, put a checkmark in the Close the books box.
  5. Enter the Closing date.
  6. Set whether or not a password is needed to change closed transactions.
  7. Click Save.
  8. Click Done.

Fill me in if you have other concerns.

 

 

For more information on taxes, forms, filings, payroll and other Year End activities, make sure to check out our Year End Resources page.

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22 replies

JamesDuanTAnswer
Oct 16, 2018 12:39 AM UTC

Hi leith,

Here's how to close the books in QuickBooks Online:

  1. In the upper-right corner, click the Company name (gear icon).
  2. Select Account and Settings.
  3. Go to the Advanced tab,
  4. Under the Accounting section, put a checkmark in the Close the books box.
  5. Enter the Closing date.
  6. Set whether or not a password is needed to change closed transactions.
  7. Click Save.
  8. Click Done.

Fill me in if you have other concerns.

 

 

For more information on taxes, forms, filings, payroll and other Year End activities, make sure to check out our Year End Resources page.

    rameez KButt
    Nov 25, 2018 12:59 PM UTC

    Hello,

     

    I have few confusions regarding the closing of books and will explain with example.

     

    Scenario 1

    Suppose today is 1 January 2019

    My first fiscal month is January

    If I go in the settings and close the books at 31 Dec 2018. so all the expenses and revenue will be Zero and go to their respective accounts?

     

    Scenario 2,

    Suppose today is 25 Nov 2018

    My first fiscal month is January

    If I go in the settings and close the books by giving date 24 Nov 2018, so all the expenses and revenue will be Zero and go to their respective accounts?

    or

    will the balances be transferred automatically on 1st January 2019

      Charies_M
      Nov 26, 2018 8:54 PM UTC

      Thank you for further explaining your concern, rameez KButt.

       

      Allow me to share some insight about closing books in QuickBooks Desktop.

       

      The expenses and revenue will be zeroed out and will go to their respective account at the end of the year. While your net profit or loss into your Retained Earnings account. Your Retained Earnings account shows the total of your company's income and expenses from all previous years.

       

      Closing of books through the accounts and settings only protects the transactions from being edited or deleted.

       

      Here are the following articles to learn more about closing books and retained earnings in QuickBooks:

      That's it. Should you have anything else you'd like to go over, feel free to reach out to us again. I'm always here to assist you further.

      jennifer m
      Jan 18, 2019 8:42 PM UTC

      what if i just closed the fiscal year 2017 today (don't ask :) ), how long does it take for my accounts to be zeroed out?  once i do that, i'll need to repeat the cycle to close 2018, and one 2018 is complete i should be able to put the next date in for 2019, correct?  thank you!

       

      jenn

        Rose-A
        Rose-A
        Jan 19, 2019 12:42 AM UTC

        Thank you for checking in with us, jennifer m.

        Allow me to share a little information about closing the books in QuickBooks Online.

         

        QuickBooks Online automatically closes out your Income and Expense accounts and rolls up your net profit or loss into your Retained Earnings account.

         

        In QuickBooks, closing the books lets you set a password for a closed book. 

         

        To close the books:

         

        1. In the upper-right corner, click the Company name (gear icon).
        2. Select Account and Settings.
        3. Go to the Advanced tab,
        4. Under the Accounting section, put a checkmark in the Close the books box.
        5. Enter the Closing date.
        6. Set whether or not a password is needed to change closed transactions.
        7. Click Save.
        8. Click Done.

        For more insights, check out these recommended articles:

         

         

        Keep me posted if you have other concerns. I'll be around to help.

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