Closing your company’s accounts at the end of a financial period ensures that your accounting records and tax liabilities are locked down for that fiscal period. Most companies close their accounts at the end of the fiscal quarter or year but this date can vary depending on the company’s size and preferences. In QuickBooks, you close your records by selecting a date and selecting a password. Your file cannot be changed prior to the date without the password. Use it annually, if not monthly, particularly if you have employees.
You may follow these easy steps:
You can launch QuickBooks Click “Edit” in the main menu bar and then click “Preferences” in the pull-down menu to open the Preferences window.
Select “Accounting” from the list on the left. Click the “Company Preferences” tab.
Scroll to the Closing Date section in the Company Preferences pane.
Click the “Set Date/Password” button.
Select the date on which you want to close your company’s books.
The closing date is usually at the end of a month, quarter or year.
Click to select “Exclude estimates, sales orders and purchase orders from closing date restrictions” if you want to exclude non-posting financial transactions from the closing date restrictions.
Otherwise, skip this step. Type a password in the “Closing Date Password” and “Confirm Password Fields” to restrict access to your closed accounts. Click the “OK” button to complete the procedure.