Quickbooks, Bookkeeping and Accounting Blog

I always recommend to clients that they close their books in QuickBooks as soon as they have finished entering regular bills and invoices from the prior year. Many clients are resistant to doing so claiming that they trust their bookkeeper and therefore don’t have any reason to do so. The primary reason to set a closing date in QuickBooks, however, has nothing to do with trust.

The primary reason to close your books in QuickBooks is to prevent mistakes. It is very easy to accidentally enter an invoice or a bill dated last year. In fact, January is the time we are most prone to doing so because we aren’t used to the new year yet.

 Therefore, consider closing your books early using a password that all QuickBooks users at your company know. That way they can enter things in the prior year, but because they will be prompted for the password before doing so, they won’t do so accidentally.

QuickBooks Tutorial: Closing the Books