QuickBooks Online Year-end Guide

Stay ahead of the game and learn how to have a successful year-end with QuickBooks Online.  This post covers the highlights of year-end planning, but make sure to check out the linked article for a deeper dive into ending the year with QuickBooks Online!

Here’s what you and your accountant need to know to close out the previous year and prepare for the next with ease:

Review

• First off, be sure to check when your fiscal year starts. This lets QuickBooks Online start fresh by clearing accounting ledgers while you work on other year-end necessities.
• Next, check on your customer’s account balances and reach out to them if there are any outstanding amounts.
• After this, make sure any pending bank deposits are cleared from the deposit queue. If there are undeposited funds sitting in there, they won’t be included in your current year’s income.
• To end reviewing your information, take care of any outstanding bills you owe and address credits, discounts, or products you're owed from vendors.

Reconcile
Throughout the year, your account should be reconciled every month to ensure transactions are matching up correctly in QuickBooks. This way, you won’t have to worry about inaccurate data at the end of the year. Here’s a  video guide on how to reconcile your account if you need any help. 

Pro Tip: After reconciling your account, review your financial reports to see how much you’ve made and if there are any discrepancies in your data. To review your financial reports, open up the Profit and Loss report and the Balance Sheet. Your Profit of the Year figure should match the Profit and Loss Report.

Close your books
Distribute Retained Earnings, setup your Owner's Equity and Draws account, and invite your accountant to collaborate with you. This will help them in preparing and filing taxes for you. Your accountant will then be able to review your accounts and reclassify transactions where it’s needed.

After this is done, close your books to prevent unwanted changes before filing your taxes. This ensures your financial data stays the way you need it without having to worry about edits or accidental changes. We have a video that walks you through closing your books and how to enter your ending dates. 

There you have it! By finishing these steps, you’re ready for the new year to begin with a fresh start to your books. Make sure to check out the QuickBooks Online Year End Guide for more in-depth information on what to do at year-end with QuickBooks Online.