We’re here to help you add some more tools to your tool belt with today’s How To: Close an Accounting Period in QuickBooks Financial.
With the start of a new year, it’s time to consider closing last year’s accounting period in your financial software. QuickBooks does not require you to close last year’s accounting period, and there are some pros and cons to consider, before we tell you how its done.
- Restricted access to prior closing periods means higher data security. No one can go mucking about in your old data, modifying and changing transactions. You can even set a password to help restrict this access.
- You lose ease of access to that data – it is still available with the password, however.
- You can no longer create reports comparing this year to last year.
Now that you’ve weighed the pros and cons of closing an accounting period, let’s get down to the nuts and bolts of how to go about it:
- [OPEN] QuickBooks financial.
- Select the [EDIT] drop down menu, then select [PREFERENCES].
- In the left hand column, choose [ACCOUNTING].
- Click the [COMPANY PREFERENCES] tab along the top.
- In the [CLOSING DATE] section, click the [SET DATE/PASSWORD] button.
- In the [DATE] section, select the closing date (usually the end of the year, or the end of the fiscal year for your company).
- If you’d like to limit access to the old accounting period, [SET YOUR CLOSING DATE PASSWORD] and [CONFIRM PASSWORD] in the [PASSWORD] section.
- Click [OK] and then [OK] again.