Fiscal Year End Procedures

The following should be performed in QuickBooks® at the close of the fiscal year.

Before you begin any year end procedure, ensure a complete backup of data.

  1. Reconcile all bank and credit card accounts. Make sure your trust liability account balances with the total of your Real Estate Trust bank account and GIC/Term Deposit account. Clear out any balance in the suspense account and make sure the balance in your transaction clearing account is zero.
  2. Close your books. The last day of the fiscal year is important in accounting because it’s the day when the books are closed. QuickBooks® lets you close the books by setting the closing date. This restricts access to any transactions entered on or before the closing date. Why does this matter to you? At the end of the year you typically print your financial statements. These reports show exactly how your company did for the year. The last thing anyone wants is for the numbers to change after you print the financial statements! The closing date keeps you from changing the numbers. To set a closing date, follow these steps:

 

  • Select Company – Set Up Users
  • Click the Closing Date button
  • Enter the new closing date in the Set Closing Date window
  • Select OK and Close.

 

  1. Input Accountant adjusting entries. In order to complete the year end activities, you may need to enter miscellaneous journal entries in QuickBooks® such as depreciation. Your Accountant should be able to provide specific information if this step is necessary. To record a journal entry, choose Company > Make General Journal Entries.Note: When making journal entries in QuickBooks®, you will need to know which account received the debit and which account receives the credit side of the entry.
  2. Print reports. QuickBooks® offers several reports commonly used for year end reporting, however, you should check with your accountant to verify any particular requirements. Listed below are reports commonly used for year end:

 

  • Profit & Loss Report
  • Balance Sheet
  • Trial Balance
  • General Ledger
  • Transaction Reports
  • Accounts Payable
  • Accounts Receivable

 

Note: At the beginning of a new fiscal year, QuickBooks® will automatically clear income and expense accounts and transfer the net income into the Retained Earnings account.

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