How to Plan for Year-End on QuickBooks

Question: What do you have to do for year-end in QuickBooks?

Answer: Many accounting systems can be quite complicated at year-end, requiring that you manually close the income and expense accounts into your balance sheet. This is how your income and expenses go to zero at the start of a new year.

QuickBooks, however, closes your income and expense accounts automatically at year-end — saving you a great deal of time and effort. There could be a few trailing chores such as depreciation entries to make. Other than that, if you are reconciled each month, all you have to do is run your financial reports (balance sheet and income statement) for your accountant and send them on their way for your taxes to be prepared.

Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant."