Month-end bookkeeping is an integral part of getting started with QuickBooks. It is like that feature of function in better terms which shouldn’t be ignored as it keeps your account clutter-free and organized.
This is not the end, with this task at hand, you will have an easier route to prepare for taxes end of the year. Monthly records should be cleared with no failure. Having this accomplished, you are relaxed about what needs to be done next. A few steps that make your way to awesome business management are listed below.
How to Close a Month in QuickBooks?
- Accounts receivable is the first step to be followed. With this, you should ensure that all the invoices of work of each client for the month are prepared. To be free from any loopholes, it is not wrong to double-check any client-related transactions.
- Accounts Payable is the next step to ensure that every bill has been paid. It must be checked that all bills paid automatically or any recurring payments like loan payments, monthly car insurance payments, and many more have been posted to QuickBooks. Reconciling any outstanding bills of vendors to accounts payable and balance sheets is a great way to avoid any mess.
- Reconciliation of bank accounts and bank loans coupled with a line of credits is another step to closing your month successfully
- Fixed assets like monthly depreciations need to be checked and recorded
- It is also important to keep a record of monthly journal entries in order to allocate prepaid income and expenses
- If there are any uncollectable invoices, then they should be added to bad debts using a Credit memo in QuickBooks
- Checks and invoices are always in serial numbers. While entering the details in the record, if you find any detail missing, probe into the matter and find the reason for the default. Ensure that such blunder is never committed in future
- While doing a rain check, if something striking like unusual balances or missing items, it is a must that you have a closer look and adjusts to make the statement look right.
- Budgets are to be updated every month. If you find that any budget is not appearing in the sheet and it is off for the month, don’t wait to make the adjustments instantly
- Don’t forget to take a printout of Financial Statements and Financial Reports which are of utmost importance in your future transactions. If you don’t know how to record credit card transactions in QuickBooks, then check the link.
- Now is the time when you will finally close the month. On QuickBooks, under the Company tab, you will see the Closing Date feature. You need to select this option as it will be necessary to have a look into your previous month and at the same time, you can set a password to keep it safe
- The final step which many people skip is the process of backing up your monthly report. This can help you to keep a track of the business trend.
The above-listed step-by-step process gives a bird’s eye view of what is happening and how is it happening. When you get to know the what and how you are closer to a perfect monthly closure in QuickBooks. As we say every time if you face any issues using QuickBooks then get in touch with us at the QuickBooks help number in Canada.