Set the Closing Date
In some systems, closing the books is a very formal process. However, in QuickBooks there is no formal closing as it’s a perpetually running system.
QuickBooks knows, by what month you set as the first month in your fiscal year (in Account and Settings) when to roll up last year’s income into Retained Earnings for reporting purposes. However, once the accounting records have been reviewed and you have sent your records to your tax preparer, you should protect any prior period data from changing by setting a Closing Date as follows:
1. Click the Gear icon then click Account and Settings.
2. Click the Advanced tab. Click the pencil in the Accounting section.
3. Put a checkmark next to Close the books and set a Closing date.
4. On the drop-down list, choose whether you want to "Allow changes after viewing a warning and entering a password."
5. Enter a Closing Date Password, confirm it and select Save.
6. Click Done at the bottom of the screen.
The Exceptions to Closing Date report (a subset of the Audit Log), reflects whether someone changed a transaction before the closing date (after it was closed) and shows what was changed, by whom and when.
ROI Accounting, LLC serves St. George locally and the U.S. remotely and provides a full range of QuickBooks support and bookkeeping services. As always, if you have any questions, please give us a call.
Partial example from sample company to the right: