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  • How To Close the Books with QuickBooks

    May 4

    This episode shows you how to “close the books,” WHY you should do it, and what to do if you need to make a change after you’ve closed out the year.

    Closing the Books

    Have you ever closed your books in QuickBooks?

    Did you run into any challenges along the way?

    I’d like to hear from you! Be sure to leave your comments and questions about closing your books with QuickBooks.  Just use the comment link below my name at the end of this post.

    ~Gabrielle


7 Responses to “How To Close the Books with QuickBooks”

  1. Hi Gabrielle,
    I am enjoying your training videos so far. I see many bookkeeping job advertisements that require month end close. I assume it involves recording depreciation and perhaps a payroll adjustment for timing differences. I don’t know what else is involved. I know you don’t want the profit and loss to go to retained earnings for a month end close. I would love to see a video on the whole process for month end close and how it differs from year end close.

  2. That’s a GREAT idea Roy! Thanks!

    I will put that on my list of videos to do. I’m sure it will be helpful to many people.

    Thanks again for the idea! :-)

    Gabrielle

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  4. Thank you Gabrielle,

    This video made just at right time, thank you for your explanation.

  5. Glad it was helpful, Tong. :-)

  6. Wendy said on

    I would think you DO want to close your revenue and expense accounts to retained earnings on a monthly basis. That’s how you know if you’re profitable. Am I missing something?

  7. Gabrielle said on

    Hi Wendy,

    Generally, that is not necessary with QuickBooks, since anytime during the year you can simply run a P & L report to see what your profit is so far for the year (or any time period you choose). Retained Earnings is usually for accumulated earnings (or losses) PRIOR to the current year. It’s not a hard and fast rule, but with QuickBooks, since the program automatically makes that adjustment for you (on a monthly basis you would have to do so through a journal entry), you would have to “remember” not to make the manual adjustment on December 31. My recommendation is to not make the adjustment to retained earning manually with QuickBooks as you would with paper and pencil bookkeeping.

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Author

    Gabrielle Fontaine, PB

    Gabrielle Fontaine, PB is an Advanced Certified QuickBooks ProAdvisor who specializes in QuickBooks software training and consulting with small business owners exclusively via the Internet

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