QuickBooks is all-in-one accounting software but it is necessary to QuickBooks closing entry at the end of the fiscal year. Every year, the user needs to prepare a new management schedule to be more productive. So it is very essential to close all previous or unnecessary entries. In QuickBooks, all necessary data of your organization stays in all backup files until you did not delete it. In this blog, you get how to know about QuickBooks Closing Entry with complete guidance.
To close all entries at the end of the year, follow the below steps:
- The first thing to do is to review the revenue accounts in the trial balance. It helps you to go through the revenue and capital accounts that are present in the company ledger. At that place, you find “Credit balance” which is reflected here and to zero also to make a way for “Debit entry” for each and every revenue account. This will help you to move the credit balance to the income account.
- Then the user needs to track the “Expenses Accounts” and you get access to view the debit balance. For each and every Expenses Account, make a new credit card entry in the income account.
- An income summary account has an overall credit balance after the completion of all entries or all credit entry amounts. This amount carries more as compared to the debit account. To close all entries of the income summary, create a journal entry from where you debit income account and then credit into the retained earing accounts.
- And finally, you get access to close the “Dividend account” into the retained earnings. You can easily view the dividend account which holds a usual debit balance. The retained earnings will help to show the amount of the net income.
QuickBooks has four amazing reports to troubleshoot the opening balance when it is difficult to identify the problems. These reports also help to manage the accountant and taxes, all are listed below:
- Audit Trail Report: It makes lists of all transactions that filled into the document and entire changes in history and deletion transactions. If the client creates new changes for a prior period transaction then the Audit Trail Report makes a way to view the new effects. Users need to set up a user identity for each client. In any case, if more than one client prefers the same user then they represent the list of all clients
- Closing date Report: It represents all new changes just before closing the date entries. It also shows the current status of all transactions. In QB, the closing date is used to lock for the selected data files to prevent unauthorized users
- Deleted Transactions report: It creates activity of alert messages of all deleted and voided transactions. You can easily view all necessary information regarding transactions on this report
- Retained Earnings Fast report: In this processing, you can easily view all exchange details under the retained earnings.
To correct closing date mistakes in QuickBooks, perform the following steps:
- Hit your first click on the “Edit” option
- Locate the “Preferences” option to check the closing date options
- Then, go to the “Accounting Preference” tab and then choose the “company preferences” option
- Enter all required data such as date and password
- To view the new changes, log in with new details, and you are done with this process.
For more guidance about QuickBooks Closing Entry, get in touch with QB team
The above information is very useful to close all entries in QuickBooks but if you need any help or guidance, just dial QuickBooks helpline number 1-800-865-4183. To rectify all doubts, drop your all queries at this email address firstname.lastname@example.org or do LIVE CHAT with QuickBooks expertise. The link is available at the right corner of the website. QuickBooks professionals have high knowledge to clear to queries in all possible ways.