Neither QuickBooks Desktop nor QuickBooks Online requires you to close your books as part of year-end procedures. However, to prevent costly mistakes, you can limit access to a closed accounting period by setting up a closing date and closing date password. Follow these simple steps to ensure you don’t accidentally post transactions to a prior closed period.
Desktop instructions to set closing date password:
1.) From the top menu bar, select Company, Set Closing Date.
2.) Click Set Date/Password.
3.) Choose your closing date and set your closing date password.
4.) Select OK to close the Set Closing Date and Password window.
Online instructions to set closing date password:
1.) Choose the Gear icon.
2.) Under “Your Company” Choose “Account and Settings.”
3.) Choose Advanced.
4.) In the Accounting section, click on the Edit icon (the pencil).
5.) Check the box labeled “Close the Books.”
6.) Enter a closing date. Note: Transactions dated on or before the closing date cannot be changed without warning.
7.) Decide what you want users to see if they try to save a transaction that is dated prior to the closing date:
- Choose ”Allow changes after viewing a warning” to make a warning message appear.
- Choose “Allow changes after viewing a warning and entering a password” to require the user to enter a password as well.
8.) Enter the password in the fields below.
9.) Click Save, then Done.
Note:
The company Admin will be able to make changes to closed periods by entering the closing date password. Other users may be able to make changes depending on their user access (type and permissions in the Online version). Either way, QuickBooks will warn you if you try to make a change prior to the closing date.
We are here to help. Please contact one of our ProAdvisors should you have questions.
