How to Plan for Year-End on QuickBooks
Ask the Accountant…
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 zeroes out the income and expense accounts to be ready to start another year. 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 your questions to Harriet at Ask The Accountant.
QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business. Contact her at email@example.com.