How To Set a Closing Date In Quickbooks

calendar-01-480x300Setting a closing date is an important step in routine business accounting. Just as the name suggests, closing off a particular time frame prevents other users from adding new transactions, removing old transactions, or modifying key elements within that period. Thankfully, Quickbooks acknowledges the need for business owners to close specific dates. In just a few simple steps, you can easily set a closing date in your Quickbooks account.

Why Do I Need To Set a Closing Date?

The truth is that some businesses may get by just fine without setting closing dates. As long as no employees, accountants or affiliated entities modifies old transactions, there shouldn’t be any issues that arise. However, it’s those rare occasions when an employee accidentally modifies the wrong transaction that can lead to a world of trouble.

Let’s say you are preparing to file your taxes for last year based on the information recording in your Quickbooks account. If an employee accidentally modified a transaction from last year when he or she meant to modify this year’s transaction, it could throw off your taxes. This is easily prevented, however, by setting a closing date once the period has ended.

Steps To Setting a Closing Date:

  1. Click on the Edit menu at the top of your Quickbooks account.
  2. Choose Preferences from the available options.
  3. Select the Company Preferences tab.
  4. Scroll down to the Closing Date section and click on the Set Date/Password button.
  5. Select a closing date for your account. While Quickbooks allows users the freedom to choose any closing date, most business owners prefer to close their accounts through a monthly, quarterly or yearly period.
  6. Although this step isn’t necessary, it’s recommended that users set a password for their closing dates. This allows users to go back and edit transactions and fields in closed dates as long as they have access to the password.
  7. When you are finished, click the OK button to save the changes to your Quickbooks account.

With the closing date now set for your Quickbooks account, other users should no longer be able to go back and make changes within that given period. In the event that you need to modify an old transaction in the closed date, you can use the password to access it and make changes. This is why it’s recommended to set a password for your closing dates; otherwise, you could end up hurting yourself in the long run.

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