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QuickBooks Online QBO

What to do when there is a difference in closing retained earnings for this fiscal year and opening retained earnings for the next fiscal year

If the amount on the Profit and Loss report is different from the amount currently displayed for the Retained Earnings account, it’s possible transactions only affecting Balance Sheet accounts may have been entered against Retained Earnings account.

You can see these user-created transactions on the account Quick Report directly from the Chart of Accounts.

Go to Settings ⚙, then select Chart of Accounts.
1) Locate the Retained Earnings account.
2) From the Action column drop-down menu, select Run Report.

Chart of Accounts – Retained Earnings account

3) From the Report period drop-down list, select All Dates.
4) Select Run report.
The report displays any user-created transactions affecting the Retained Earnings account figure.

Chart of Accounts – Retained Earnings account

Normally, this type of ‘only affecting balance sheets accounts’ transaction should not happen except for earnings distribution from Retained Earnings account category. All other transactions should go through the Income and Expense accounts.

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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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