Here we will take a look at a few add-ons that will help you answer your query, about how to start a new year in QuickBooks. You will then also have a streamlined process that will be smooth to start a new company file. The New Year is around the corner and your clients need to start a new QuickBooks file. Many tools are available with QuickBooks to make this transition easier.
How to Start a New Year in QuickBooks?
QuickBooks eliminates the initial process of a few data entries by creating new company files each year. You don’t have to close the company file at the end of each year, as the volume of the transaction over the course of time increases and the performance of the PC becomes slow.
With the creation of new company files, these problems can be avoided. It provides data security in case of any accidental data changes for the last year’s tax reports. It can also be used for restructuring the current data items and cleaning up the unused items.
The Limitations that Should be Kept in Mind
- As the critical information is stored in payroll files, so these features are unavailable to the payroll users.
- Comparative annual reports cannot be run if one plans to create new company files.
QuickBooks payroll subscriber automatically gets updated from QuickBooks at the commencement of the New Year. Through these updates, they send:
- The rates of Consultanted state,
- Federal tax table,
- Payroll tax forms,
- E-files and payment options when the new year approaches.
At the end of each year, they release the changes that they Consultant.
If you want to download the payroll updates then follow the following steps:
- On the top menu bar click Employees.
- After this click Get Payroll Updates and then select Updates. If you want to view the employees’ wages and benefits before the commencement of the New Year, follow the under-mentioned steps:
- Click the Employee tab on the Employee Center.
- Double click on the employee whose details you want to see then access the Edit Employees window.
- Now click on the tab “Payroll Info”.
- Check the information carefully to ensure items, rates, and limits are accurate.
- Click Ok and save the window.
It is always good to review the employee file, every employee should have a separate employment folder. The folders should have W4 and WT4 and other relevant files pertaining to payroll information. Although I9 file should be kept in a separate folder.
If you want more info on the same then, read how to set up payroll taxes in QuickBooks.
Items that Need to be Crossed
Before we can answer your query on, how to start a new year in QuickBooks here are some of the things that need your attention. These include:
- Check whether your QuickBooks is full of outdated information. Check the list and delete or hide all the inactive entries.
- The contact information of all the customers, vendors, and employees should be updated.
- Whether Goods/ services price needs to be updated should also be considered.
- Under the company, the menu goes for the planning and budget section to create and enter a new budget.
- Explore your QuickBooks to find the features that are not in use. This can save your time and money for the upcoming years.
- QuickBooks sometimes downloads maintenance patches for the current version of the program. They do this when a problem with the current version is discovered. This is usually fixed after the current version got distributed to the user. To get this patch you can click on the help menu and then click Update the QuickBooks.
To conclude with we need to close the year in QuickBooks. Before closing your QuickBooks make sure your tax return and year-end journal entries are complete and posted. This will ensure the trial balance will stay for the coming years.
Set a closing date by following the steps:
- On the top menu bar click “Company”
- Then click the “Set Closing Date” tab. Now select a date to end the year and set a password.
Hope you are well sorted now. But in case you are still facing issues and still don’t know how to start a new year in QuickBooks then connect with team via LIVE CHAT and talk to our QuickBooks certified staff who will help you set up your QuickBooks. Don’t wait and reach us for instant help.