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Bert2021
February 18, 2021
Question

Year-End Close-Out

  • February 18, 2021
  • 1 reply
  • 0 views

I have recorded my closing entries on the first day of the next year. So that I can continue to pull Trial Balance at the end of the year without losing my P&L balances. Closing them out would bring balances to zero.

 

Is there another way in QB to record close-out entries?

 

I read that QB automatically does those entries, I have not seen this....

1 reply

JenoP
JenoP
February 18, 2021

Hi there, Bert2021. 

 

QuickBooks will automatically adjust your Income and Expense accounts at the end of the year to zero them out and you start your new fiscal year with zero net income. This happens when you close your books in QuicBooks Online. It essentially increases your Retained Earnings equity account by the previous year's net income and decreases your net income by the same amount. This way, you start each new fiscal year with a net income of zero.

 

Here's how:

 

  1. Go to the Gear icon ⚙ and select Accounts and Settings.
  2. Proceed to the Advanced tab.
  3. Click Edit ✎ in the Accounting section.
  4. Look for Close the books and slide the status bar to the right.
  5. Enter a closing date. 
  6. Select the Allow changes after viewing a warning and entering a password option from the drop-down menu if you want to require a password before editing your closed books.
  7. Click Save.

 

Let me share these articles with you for more details and reference:

 

 

Please don't hesitate to reach out to us again or reply below if you have follow-up questions. 

    JenoP
    JenoP
    February 21, 2021

    Hi Bert2021,

     

    Hope you’re doing great. I wanted to see how everything is going about closing your books in QBO. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.Looking forward to your reply.

     

    Have a pleasant day ahead!

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