QuickBooks transactions are date sensitive, and users with proper security rights can enter transactions dated in a prior, current, or future period. A month-end close in QuickBooks incorporates recording transactions, reconciling, reviewing, and printing monthly reports. Users can set up reminders concerning month end tasks to be completed.

How to Set Up Automated Backups When Consider QuickBooks Month End Closing Checklist?

Follow this QuickBooks month end close checklist to streamline your closing process:

• First of all, from the File menu, choose Back Up.
• Then click the Schedule Backup
• Now click the New Button.
• Next, make proper selections in the Schedule Backup
• Finally, Click OK to save the new schedule.

What Problems Occurs During the Close For QuickBooks?

The biggest hurdle is to ensure that your reports correspond to the balances on your financial statements every month. Another challenge is to ensure that your clients are all paying on time.

Can you Skip to close monthly books in QuickBooks?

No, though the close monthly books process can seem routine, it is crucial to the business.

How Much Time Does the Month-End Close of QuickBooks Usually Take?

When you consider QuickBooks month end closing checklist, It can depend on how fast your computer is, how large your company data files are, and if you handle your time efficiently and are well organized, the month-end close for QuickBooks might go very quickly.

Steps to Close a Fiscal Year in QuickBooks

Below are the steps mentioned, how to close a month and year in QuickBooks.

First of all, confirm that your QuickBooks accounting System is in balance. You need to follow these basic steps to know if your accounting system balances are good in QuickBooks.

Follow the simple steps mentioned each month to confirm that your primary balances are okay for accurate financial statements.

1st Step: The General Ledger (These balances create the financials)

First of all, print the General Ledger Trial Balance by using the last day of the month once all tasks for the month have been updated.

2nd Step: What do the customers owe you?

Now, print the Customer Aged Receivables Report, which is a detailed list of how much the customers owe the business.

The Accounts Receivable general ledger account balance on the General Ledger Trial Balance must = the total sum due found on the Aged Receivables Report.

3rd Step: What do you owe the vendors?

Then, print the Vendor Aged Payable Report, which is a detailed list of how much you owe other individuals and businesses.

The Accounts Payable general ledger account balance on the General Ledger Trial Balance must = the total sum due found on the Aged Payable Report.

4th Step: How much inventory do you have in stock?

Next, print the last page of the inventory valuation report, which is a detailed list of the items you have in the warehouse and their value.

The Inventory general ledger account balance found in the General Ledger Trial Balance must = the total inventory valuation amount found on the Inventory Validation Report.

5th Step: How much have you paid to the employees?

If your company calendar year is February to Next January, then print the year to date payroll earnings report, or you can also get it from your payroll service provider.

The Payroll Amounts for wages and salary accounts found on the General Ledger Trial Balance must = the total YTD Gross on the Yearly Earnings Report.

6th Step: Check if your cash is in balance?

Next, perform your monthly bank reconciliation process. When it is completed, it should correspond to the available cash balance in the checkbook.

The Cash Accounts general ledger balances found on the General Ledger Trial Balance must = the reconciled checkbook balance once the bank reconciliation has been performed.

Make sure that all the cash you are being paid and have deposited has been recorded.

Points To Consider in the Month-End Close Checklist in the Year-End

• Write off bad debts
• PDF copies of YTD payroll reports
• Perform a physical inventory count
• Issue 1099’s to vendors
• Consider online accounting software
• Print W2’s
• Close unwanted purchase orders
• Close unwanted sales orders

Other Points to Consider

A month-end checklist is vital to help you make sure necessary tasks are being performed each month. Also, there might be many other steps that need to be performed each month.

What to do if the accounting system is not in balance after completing the month-end close checklist?

If you find errors on any steps, consult an accounting software consultant to find the root cause. Make necessary changes to how your system is set up and give counsel on correctly recording the transactions.

Print QuickBooks reports you need for the end of the year.

First of all, create a repository file on your server to retain all the yearly reports. While saving them, name them what they actually are and enter the year-end date.

Just email or print to hard copy and share when you need a copy for the bank or CPA.

Below is a list of the reports you need to keep on file for QuickBooks Year-End Close.

• Accounts Receivable Aging
• Accounts Payable Aging
• Payroll YTD Earnings
• General ledger trial balance
• Balance Sheet
• Income Statement
• Inventory Valuation

How to Perform a Month-End Close?

Let’s dive into the steps how to close the books:

• First of all, click on the Gear icon and choose Company Settings.

Source: https://quickbooks.intuit.com/

• Then, choose Advanced.
• Then, in the Accounting section, click on the Edit icon.
• Next, check the box named Close the books.
• Now, enter a closing date. Transactions that are dated before or on the closing date cannot be modified without warning.
• Next, decide what you want users to see when they try to save a transaction that is dated before the closing date:
• Select Allow changes after seeing a warning and entering a password to ask the user to enter a password as well. Then enter the password in the space below.
• Select Allow changes after seeing a warning to make a warning note appear.

7th Sept: finally, click Save, then done.

Information Your Accountant Or CPA Should Know

• Depending on the number of financial reviews, you can choose to give copies of some/all the reports you made.
• The accountant can provide guidance as to which reports they will need.
• By reconciling your subsidiary ledgers to the financial statements every month will save a lot of time.

How to Backup QuickBooks Company Data Files?

• First, put your company in single-user mode.
• Then choose File, and then select Backup company.
• Now, from this menu, select create a local backup.

Ensure that the local backup is selected, and using the options, you can pick a secure folder where you want to back up your QuickBooks company data file. It is also advised that you add the time, date, and name of your company data files to the name of the backup file generated.

Also, you can set the number of backups to be kept in this folder and how often you wish to have backups made.

Frequently Asked Questions

Few More Reads:

• How to do reconciliation in QuickBooks for non profit?
• How to setup profit & loss forecast for account in QuickBooks?
• How to submit payroll in QuickBooks?
• What to do balance sheet is out of balance in QuickBooks?
• How to setting up automatic payment in QuickBooks?