Closing The Books in Quickbooks Pro
Overview
QuickBooks provides the features of closing books easily for the given year. QuickBooks provides you the option to set a password for a closed book that required in opening and changing records from a closed year. It facilitates users in records net profit and loss and auto closes out your Income and Expense accounts. The main motto of closing the books is to protect transactions in previous periods from being changed and close your records by selecting a date and selecting a password.
Steps For Closing Books In QuickBooks Pro
- From the main menu, click ‘edit’ “preferences” to open the preference dialog.
- Then to open ‘accounting preferences’, you need to click on ‘accounting’ by using a drop-down list.
- After that click on the ‘company’ tab option.
- Now choose the ‘closing date’ from the dialog box.
- Then establish your new password and then open the password dialog.
- You need to edit your new ‘Password’ and then ‘Confirm’ the password in the available fields.
- Then click ‘ok’ and return to the accounting preferences dialog.
- After completing the above steps, click ‘ok’ to save the changes and close the dialog.
Advantages Of Closing Books
- It helps in reporting so that you can review each change that has made in the transactions dated.
- It starts your new fiscal year with a zero net income by adjusting your net income and expense accounts at year-end to zero them out.
- It provides you with some restricted access.
- QuickBooks increases the retained earnings equity amount of the previous year’s net income and decreases the net income by the same amount.
QuickBooks customer team assists you to fix any kind of issue remotely by taking remote access to your computer.
