QuickBooks does not require "closing entries" in the way that paper ledgers and old-school software does. Instead, after you have reconciled, cleaned up and adjusted the books, it is best to password-protect the transactions up to that date. Here's how:
Suggested procedure when closing the books for the year:
- When submitted to accountant, change Closing Date to Dec 30th (the day before year-end)
- After the taxes are filed, enter any adjustments submitted by the accountant, then update the Closing Date to Dec 31sth (or your year-end)
In QBO this is done in Settings > Advanced > Accounting > Closing Date
In QB Desktop it is in Preferences > Accounting
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