When a financial year ends, you and your accountant are required to perform several tasks in QuickBooks Desktop. These processes are important for closing previous years and preparing for the upcoming one.

If you are not aware of the processes that are required when a financial year ends, you need to not to worry at all. This article covers each task that you need to perform when a year ends. You need to read this full article and perform the tasks provided in this article. You can also connect with our QuickBooks Technical Support department to know more about the required tasks.

Task 1: Confirm the first month of your fiscal year

Choosing the appropriate month to initiate your fiscal year allows QuickBooks clear accounting ledgers, when you process some other year-end processes.

You can confirm or change the first month of your fiscal year:

  • Go to the Company menu and choose My Company.
  • Click on the pencil icon.
  • From the Report Information window, review the first month of your fiscal year is accurate. This is to ensure that the dates are correct on the financial reports.

Task 2: Confirm customer account balances, send statements, and clear any outstanding deposits

When the ending period of a year comes, you need to make sure that the balances, billings, and payments are updated.

You can settle outstanding customer payments but running an Accounts Receivable Aging Summary or Detail report:

  • Go to the Reports menu and choose Customers & Receivables.
  • Click on A/R Aging Summary or A/R Aging Detail.
  • Go through the report to identify customers with outstanding balances.

When you get all the outstanding balances, the statements can be sent to the customers now.

To send a statement:

  • Go to the Customers menu and choose Create Statements.
  • Select the appropriate A/R account. Note: You will be shown the A/R Account section in case the chart of accounts has more than one A/R account. 
  • Review the statement date.
  • Choose the date period of the transactions. Note: The dates can be specified as required or you can add each open transaction as of the statement date.
  • Select the customers for which you will be printing the statements.
  • Select additional options.
  • Select Print or E-mail, as per the process to send statements to your customers.

Task 3: Confirm vendor/vendor account balances and pay bills or write checks

Following things are worth performing at the end of the year:

  • Any outstanding bills you owe for the year
  • Any outstanding credits, discounts, or products you owe from your vendor/s

You can review and pay outstanding bills by running an Accounts Payable Aging Summary or Details report:

  • Go to the Reports menu and choose Vendors & Payables (or Vendor & Payables).
  • Click on A/P Aging Summary or A/P Aging Detail.
  • Go through the report to identify the outstanding bills to pay before the year ends.

Task 4: Reconcile bank accounts, credit cards, and petty cash

Reconciling your bank account statement with QuickBooks Desktop is important. Doing this ensures that each transaction is correct in your statement, and your year-end reports shows accurate financial data.

Before you reconcile, make sure to:

  • Create a backup of your QuickBooks company file.
  • Clear all the uncleared transactions for the particular period.
  • Save a copy of your bank or credit card statement.

Task 5: Invite your accountant – it’s time to collaborate and consult

You can consult your account to get help with the year-end process, and forecast your company’s financial future.

Work with your accountant using the Accountant’s Copy. The QuickBooks Accountant’s File can be stored on your local system, and because it only contains the required data, it is safe to share through the transfer service.

Task 6: Run year-end reports

Open the year-end reports to check the info, identify and resolve any possible issues.

To run year-end reports:

  • Go to the Reports menu and choose Company & Financial.
  • Click on Profit and Loss and then Balance Sheet Standard, or any other report you have customized.

You need to understand the criteria that QuickBooks follows for automatic adjustments at the end of the year.

Task 7: Distribute profits from the business (accountant)

If required, you can take help from your accountant for driving your Retained Earnings among partners or owners. This can be done by creating a journal entry in QuickBooks.

Task 8: Prepare year-end tax return (with accountant assistance)

Usually, a company’s accountant creates or prepares the taxes.

Sharing the Accountant’s Copy to your accountant provides all the required financial info to prepare and file your company’s taxes. Also, some additional changes can be made by your accountant as well.

Task 9: Close the books (optional)

There’s no requirement for QuickBooks to close books for the year-end process. However, performing this task provides you the option to use a closing date password to limit access for the period.

Hopefully, you find this article helpful and you managed to perform each year-end task in QuickBooks Desktop properly. However, if any issue occurs during or after performing year-end tasks, you need to get connected with one of our technical assistants through the toll-free QuickBooks Support Phone Number +1800-324-6955 and get instant solution for all your errors and issues.

QuickBooks Year End Guide

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