Categories
1099 Closings QBO QuickBooks Year End

Preparing for year-end: Hints and Tips for QuickBooks Online (QBO) users

Year-end is quickly approaching. Be prepared for the year-end. Here is a 10-point checklist you should go through to keep your QuickBooks Online accounts in order and plan for the year-end processing.

 

Helpful Checklist:

  1. Bank Reconciliations
    Make sure all bank reconciliations are up to date. This includes credit card accounts as well. Review any unmatched items (both deposits and payments) that you would not expect to be outstanding. This may be the result of a duplicate entry.
    It is important these banks reconciliations are printed (or saved) at year-end.
  2.  

    Click on the screenshots below to enlarge them
    bankrec

     

  3. Undeposited Funds
    Make sure all the customer payment items in Undeposited Funds account have not yet been deposited to the bank account. If all the deposits are already posted to the bank account, this account should show zero balance. Any balance in Undeposited Funds account (even after bank accounts are already reconciled) may be the result of a duplicate entry. Review income and account receivable accounts and resolve it.
  4. uf

     

  5. A/R and A/P Balances on Cash Basis
    Run the Balance Sheet on the cash basis accounting method. If the transactions were properly recorded, these two accounts should not show a balance in the Balance Sheet.
  6. arap_cash_basis

     

  7. Employee Advances
    Make sure Employee Advances account is reconciled. This account should include the advances that are yet to be repaid or have not been deducted from the payroll.
  8. emp_advance

     

  9. Payment to Independent Contractors (1099s)
    Make sure you have IRS Form W-9 on file and they are up to date.
    You can google 1099 and W-9 for all the handy information you need.
  10. track1099

     

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  11. Other Balance Sheet Accounts
    Review all other balance sheet accounts. Make sure all assets and liabilities are shown properly. It is also time to make adjustment entries if necessary.

     

  12. bsaccts

     

  13. Depreciation on Fixed Assets
    If you have posted your depreciation on fixed assets entry, make sure these are up to date. If not, consult your Accountant.
  14. depreciation

     

  15. Uncategorized Income & Expense / Ask your Accountant
    If you have any uncategorized income and expense in P&L that have been used to post entries that you aren’t sure what to do with, now is the time to have a look. If needed, ask your Accountant and resolve it. Also, review all income and expense accounts and make sure it makes sense.
  16. uncategorized

     

  17. Retained Earnings
    Keep a separate spreadsheet Account Analysis of Retained Earnings account. This account should include income or loss from prior years. It may also include reclassifying transactions within equity type accounts. Consult your Accountant if it involves any entry posted from outside of equity accounts.
  18. re

     

  19. Close the books
    Close the books once you have submitted final numbers to your Accountant for review and tax preparation. Consult your Accountant in case there is a need to make changes.
  20. closing

     

Categories
Close the books Closings Company Gear Company Settings

How to close down a prior period with a password

To close the books from the home page screen:

  1. Click the Gear icon > Company Settings.
  2. Select Advanced > Accounting > Close the books.
  3. Enter a Closing date. Transactions dated on or before the closing date can’t be changed without warning.
  4. Choose how you want to allow changes:
    • Choose Allow changes after viewing a warning to display a warning message only.
    • Choose Allow changes after viewing a warning and entering password to also require the user to enter a password.
  5. Click Save.

View transactions that are changed after the closing date

Once you close your books, you can track changes that anyone makes in spite of the closing date warning. The Exceptions to Closing Date report tracks these changes on the Audit Trail page.

 

accounting close the books with password

 

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Categories
Close the books Closings Company Gear Company Settings

Closing the books feature in new QuickBooks Online

 In new QuickBooks Online, they have feature called Closing the Books. The main purpose of officially closing the books is to protect transactions in previous periods from being changed. This is done by setting up and requiring a password to edit transactions past a particular date. Both Master and Company Administrators can set the closing date and password:

  1. From the home page screen, go to the company gear icon (upper right corner) go to Company Settings.
  2. Click Advanced, and then Accounting.
  3. Click to mark the Closing The Books checkbox.
  4. Enter a closing date. Transactions dated on or before the closing date cannot be changed without warning.
  5. Decide what you want users to see if they try to save a transaction that is dated prior to the closing date:
  • Choose Only Warn to make a warning message appear.
  • Choose Warn and Require Password to make the user also enter a password. Then enter the password in the two password fields below.

Click Save then Done.

Viewing the transactions that are changed after the closing date:

After you close your books, you may want to track any changes that anyone makes in spite of the closing date warning. The  Exceptions to Closing Date report tracks such changes on the Audit Trail page.

  1. On the left navigation menu, click Reports.
  2. Select All Reports.
  3. Select Accountant Reports.
  4. Click Exceptions to Closing Date and view the report.

Closing the books feature in new QuickBooks Online