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J
JSuelto
November 20, 2018
Question

How to lock closed periods?

  • November 20, 2018
  • 3 replies
  • 0 views

My company has set up an integration between QBO and Bill.com. If we process an invoice dated from earlier in the year (a financial period that has been closed), the expense will post to that corresponding month in QBO. This issue forces us to constantly restate our financial reporting. Is it possible to lock a period so no entries can be posted after it has been closed? 

    3 replies

    MichaelDL
    MichaelDL
    November 20, 2018

    I've got you covered, @JSuelto.

     

    QuickBooks Online (QBO) offers the option to Close the Books by finalizing financial statements for a specified period and then password protecting any changes to that information. Follow these simple steps to get started:

     

    Close the Books in QBO

    1. From QuickBooks Online, click the Gear icon (⚙) and select Account and Settings.
    2. Select the Advanced tab and click the Accounting section. Check the box to Close the books.
    3. Enter a closing date and select Allow changes after viewing a warning and entering a password.
    4. You'll be prompted to create a password. Once finished, select Save and then Done.

    This information is also available in our detailed guide on closing the books here. Check out this awesome video tutorial on the process for a visual demonstration:

     


    This allows you to lock whichever periods you need and avoid entries after that period is closed. Please feel free to keep in touch with me here with anything else you need, the Community always has your back. Thanks for bringing your question here, I hope you have a safe and relaxing holiday season.

     

     

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

      J
      JSueltoAuthor
      November 20, 2018

      This is exactly what I was looking for @MichaelDL. Thank you!

       

      As a follow up, how does QBO handle prior month expenses posted from a sync with integrated software (Bill.com or Expensify for instance)? Is it possible to force the expenses to post in the current fiscal period? 

        B
        bnimurphy
        July 13, 2021

        did  you get an answer to this? im having the same problem as well

        IamjuViel
        IamjuViel
        December 28, 2018

        Hello there, @Niki Schoggen.

         

        I’d be glad to share some information with you on how closing the books works in QuickBooks Online.

         

        Closing your books monthly allows you to review the transactions recorded into the system to ensure they are accurate.  This is also to make sure all the adjustments made properly reflects in the business’ activity for the month. 

         

        The ability to set QuickBooks to close your books per month automatically is currently not available. What you can do is to change the closing date each month, from November 30 to December 31 (As of Date closing). Please refer to the screenshot below:

         To set the closing date of your books “As of Date”, here’s how:

        1. Click the Gear Icon.
        2. Select Account and Settings.
        3. Go to the Advanced tab.
        4. Under the Accounting section, put a check mark in the Close the books box.
        5. Enter the Closing date.
        6. Set whether a password is needed to change closed transactions.
        7. Click Save.
        8. Click Done.

        Once your books are closed for November, all the books from January will also be closed.

         

        On the other hand, I can see how this specific feature is beneficial to you and your business. I’d be delighted to forward this to our Product Developer for future considerations. You can directly share your suggestions and feature requests for product improvements.

         

        Here’s how:

        1. Go to the Gear icon.
        2. Choose Feedback from the drop-down.
        3. Enter your Comments, Suggestions or Feedbacks.
        4. Click Next.
        5. Select a category.
        6. Click Send message.

        You can be sure we’ll continue enhancing this program so it grows alongside your business. Stay tuned to our blog: https://intuit.me/2L2zqTv.

         

        Don’t hesitate to visit the Community page if there are any app features you’d like to get more familiar with. I’m always here to help.

        A
        Abby7700
        March 25, 2019

        Hi,

         

        I followed all the steps. However, I did not see the Close the books checkbox for me to click. Could you advise? Thank you!

        Kristine Mae
        Kristine Mae
        March 25, 2019

        It's possible you're a standard user, Abby7700.

         

        Only the master and company administrators have the capability of closing the books and setting a password.

         

        You can refer to this article for more information: How to close the books.

         

        If you have more questions, just drop a comment below. We'll get back to you as soon as we can. 

        C
        CraigHenk
        March 31, 2023

        I am still really confused.  Can a month be closed or not?  When I click on the link of how to close a month, it shows how to close a year.  What is process for closing a month?  Does each month have to be closed or once a year is closed, then each month is closed?  Please help me understand.

        J
        jamespaul
        March 31, 2023

        Hello, Craig. 

         

        I'm dropping by to clarify some details about closing a month in QuickBooks Online. 

         

        To clarify a bit, are you trying to close a specific month? Or do you want to leave that month's transactions closed while still having the option to edit the rest of the months in a year? 

         

        We're unable to close a specific month. QuickBooks uses a closing date to prevent any transactions before that date from being changed. 

         

        In a sense, it closes off a portion of the year (which includes the entries from the prior years). So, it's not exactly a year unless you set the closing date to December 31st, which closes all months. 

         

        All we really have to do is to select a specific closing date. So, if you want to close off the month of March, we'll want to set the closing date to March 31st or April 1st. So, any entries before this date would be locked. This includes all transactions from the previous years as well. 

         

        Also, if you want to edit an entry before the closing date, we can do so. QuickBooks will prompt a warning and wants us to enter a password (if the password option is enabled). 

         

        However, note that changing an entry's date, mapped account, or amount will affect your reconciled balances. We'll want to seek an accountant's advice before doing so to ensure the accuracy of your books after changing. 

         

        If you haven't done it yet, I suggest checking out this article for more details about setting a closing date: Close your books in QuickBooks Online. 

         

        Would you like some assistance reconciling your accounts? Take a look at this article as a guide: Reconcile an account in QuickBooks Online.

         

        Feel free to drop by again if you have more concerns about the closing date. Let me also know if you have questions about your entries. I'm here to help. 

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