Year End Closing With QuickBooks
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Update:
This video was done to address the very specific question of how do I zero out these accounts assuming one insists on doing this. I am actually not a fan of doing this.
Watch this video for an updated much more recent perspective -- • Opening Balance Equity...
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Seth, you cannot close out "capital contributions" to retained earnings for a corporation. It is not allowed under TAX or GAAP. You can close out shareholder distributions (cash, FMV of property, cash dividends, stock dividends). The reason is if he shareholder sells or liquidates his position and/or if the corporation terminates in a complete liquidation. Joe Diamond CPA, CFP, EA, MST.
Thanks for posting this. I'm not knowledgeable with the matter at hand, but it seemed improper to move capital "contributions" into retained "earnings".
Thanks a ton for this; the visuals cleared up what all of the blogs/forums discussed using obscure acronyms and slang.
So, I finally decided to go in the "opposite direction" of your recommendation. I decided to "close-out" the special Retained Earnings (RE) account "to" the partners' equity, instead of what you demonstrated, which was to close-out the partners' equity to RE.
But I still wanted 2 things: I wanted that ability you mentioned to easily see a summary of what contributions and draws the partners made during a given fiscal year. And I wanted the running RE total (that I used to have before I found out about this whole "closing the RE account" idea).
My solution was to create a "Capital" account for each partner, then 3 sub-accounts under each: "Draws", "Contributions", and "Retained Earnings". When I close-out the main RE account each year, I calculate what each partner gets from the main RE and transfer it to the partner's RE sub-account.
Now when I want to see the in/out flows for partners during any given fiscal year (or any date range, really), I do a custom report that only looks at the Draws and Contributions accounts. And, when I want to see a cumulative RE report, I run a custom report (memorized) that only looks at those RE sub-accounts. It seems like it's going to work out well for me.
Yep! If you watch my video on owner's contributions and distributions you will see that you have set up the equity section exactly as I describe in that video. Then with partnerships, you are correct, you want to close (net income actually, not retained earnings) to each partner capital account in proportion to their share of ownership. Of course if you are doing that each year with the right net income figure then you should be left with $0.00 in Retained Earnings, but it should be clear that the proper "closing entry" here is to close out the net income figure. In the event that something else wound up in retained earnings besides the net income closing entry then you would want to deal with that other amount some other way.
Hi Jim. It is by no means a requirement to do this, but I suggest it only because I've run into many clients who when looking at the equity section of the balance sheet like to see only the current year's contributions / distributions reflected.
this is exactly why I watched this video, I don't want owner's pay (or whatever it is called) to show numbers from previous years
Frances Calderon QuickBooks closes the Net Income from your trial balance to the balance sheet based on what closing date you've set so to answer your question, I didn't include it because QuickBooks does that for you.
Hi Seth- I am wondering about cleaning up messy books. I know this could be a very involved topic, but do you have any videos up on this? Wondering how you handle cleaning up messy books, in general? Any information you could give would be helpful! Thanks!
Hi, Seth! I'm a new author who plunged face-first into the fray when I opened an S-Corp with considerably less research than I conduct for my novels, lol. I'm not at a point that I can afford a book keeper, much less a CPA, so your videos have been a God-send for me in navigating my Quickbooks to make sense of all this number-y stuff. Thanks!
Elizabeth Raven thank you! This means a lot!!
Thanks x a million, actually! Your videos are much easier to follow (and much more amusing and relatable than most accounting vids). Keep up the good work!
Thanks seth this taught me a lot. One item of note: People shouldn't touch sales tax accounts using this method. I've had a consistent issue with my CPA where my sales tax paid is off. They say I have a $9000 over paid. Well if you've ever dealt with the Cal Fran Tx Brd, they .... dont agree. So CPA does a journal closeout each year of 'over' paid to my pre-paid sales tax account. The issue is if you use the quickbooks sales tax module that pays sales tax paid doing this throws things into chaos. Un applies those sales tax payments. I contacted Intuit and they agreed that that sort of closeout is "not best practices". Anyway a tip... I think.... books are still all messed up. Accountant going to charge me $300/hr to fix this :(
Sir you have explained it really well, I appreciate your time and effort. I closed my books with no issues.
Small Suggestion: When you demo any videos, can you turn off your video. It will make it easier to view your full screen.
Hello can you show year end closing for a partnership,, one partner has withdraws
Hello and Thank You!!!!! You don't know how appreciative and grateful I am for your videos regarding QB. I wish you many, many blessings!
Thank you! This means a lot! I am so glad my videos have helped you! I hope to bring many more, and continue to help people everywhere!
For someone that has done books manually for 34 years - not closing out the expense and income accounts is weird. Yes it all worked out, but I still keep my manual book. I have been doing a "manual" closing entry in QB for years which always wiped out the income and expense accounts.
Wow~~~ Quickbooks didn't do all closing entry.
i just cleared dividends on Balance Sheet.
Thank you very much!
very helpful!
Hello Seth, can you talk more about equipment and furniture depreciation. thank u
I feel like 'owe you', after learning so much from your videos for FREE. Thanks for amazing videos!
From.....one of your student you never met :-)
Happy to hear that!
Your picture is always in the middle of the screen and makes it very difficult to see some of the things you are speaking of when showing reports or examples in this video. Thank you
Thank you! Your videos are very helpful. One question on closing entries is about the Income Summary account. NO ONE has ever explained how that account is created in Quickbooks. I assume is an Income type account, but would like to get official answer.
I'm not even sure what an "Income Summary" account is. It sounds like an income account, but I'd have to see an example of how (and where) it is being used.
Good day!! Thank you for sharing your knowledge to us. I have a quick question:
How uncleared transactions affects the financial reports and how do we fix them? I mean, If you have a lot of uncleared transactions from your bank reconciliations, but you don't have an idea of what had happened. Because they happened before you took over the bookkeeping.
Thank you for your help.
Marco.
You are the best Seth! thank you
Thank you!
Seth, thanks for going through that little process on QuickBooks. Much appreciated!
You're welcome!
why didn't you include the closing entries needed from the trial balance?
Thanks, can you also show processes in Quickbooks online? I have used the old one before but have now migrated to the online version
Excellent stuff! thank you for being available!
Nerd Enterprises, Inc ROCKS!
wmj plakas thank you!
Can you discuss how to clear an 'error due to large amount' during a financial exchange that occurred on the adjusting memo line after a physical inventory. (Adjustment amount approx. 2mil)
Hi Seth, thanks for the info, greatly appreciated! I would just suggest we don't need to see you in the video, it is distracting and hides some of the template.
Just what I needed. Very helpful! Thank you!
thanks very much for this great contribution. It is really simple thanks for take the time to do this.
Why would you close out capital accounts like that? That erases valuable information, leaving you unable to manage distributions to partners.
Brian Schiller it doesn't erase anything. These are balance sheet accounts which are permanent and cumulative. If I run a balance sheet based on prior periods I can still see exactly where things were before they were closed out to retained earnings. This is by no means required, and many people do not do this, which is perfectly ok. When people do ask me about closing out the books at yearend, this is what they can do. This method also helps the tax prep person tie retained earnings out to the Tax Return.
Hi, thank you for sharing your knowledge , Please i want to know how to take stock of total quantity of items that was sold out withing a particular period in time. how can I view the total number of good sold out (the quantity)
I have a question I calculated sales tax and payroll tax then make a check and put it on liability but on the report it would show negative amount. How do I fix it to positive?
Really helpful for yearly closing entry
How do you account for multiple partner conrtribution if say one of the partners contributed a lot more then the others. If you close all of the contributions to retained earnings does not that informations becomes kind of lost? Thank you
How do you account for encumbrances in the new year? Also, how do you load the budget into QB?
Ramona Smith Hi! If you're talking encumbrances, then you're talking non-profit or government accounting. That's a whole different ball game. As for the budget, you can't load that in. You have to create it in QuickBooks. My preference is to keep the budget in Excel. You can base it on the QuickBooks chart of accounts, but Excel offers much more flexibility in terms of setting it up and managing it.
If you like I can help you with that stuff 1:1 - too much to go into in a comment - www.schoolofANSWERS.com
Thanks. but my question is why do we close temporary account or P & L account? at the end of the year these account should be zero. I am waiting your reply. thank you again
You're not closing a P&L or temporary account. All we are really doing here (and it's not required as well as in some cases you don't even want to do it) is closing out Equity accounts to retained earnings. This enables a business owner to analyze the impact of only the current year on the owner's capital accounts.
is there a way to set up a line item that can show a balance carried forward. Example: Scholarship I donate to it, it is a non profit. They take the money in and then the scholarships are awarded but not all the money is spent and it needs to be carried forward to the new year. We work on Fiscal year Jul-Jun. Because the treasurer may change annually keeping track of what the balance is problematic as continuity may be broken as we are a Lions Club and membership and treasury work is voluntary. Short of opening up a separate checking account and keeping track that way is there another way to do it.
Hello! Thanks again for your helpful videos! I was wondering if, in the equity section of the Balance Sheet, we are to also close out the 'Opening Balance Equity' line in the same way. Thanks in advance for your help!
Hi! Yes, you can close Opening Balance Equity out to retained earnings.
Can you please explain how to post personal income tax payable I've paid or anticipate paying to CRA, and tell me if it is considered an expense with CRA when I am self-employed? Thank you.
Very good and learnt a lot from you thanks！
Nice video! Thanks for sharing this wonderful tutorial
where to keep net profit of last year in PL account on current year?
Can you please explain how to set up a fiscal year from the mid of month on quickbooks? For example, August 15 to August 15 fiscal year. Thanks a lot
Hi. In the Settings you can set your Fiscal year to any date. I am not sure if you can do a date in the middle of a month. I think it needs to be (eg) from August - July.
Hi Seth, I have an expense that needs to be expensed in one fiscal year and come out of that years budget, but it wasn't paid until the following year; can I do a Late-Paid expense, similar to a pre-paid expense? Or how is that normally handled?
Hi there, our current year end is Nov 30. We just received approval by CRA to change our year end to Dec 31. So we have to file 1 month year ending Dec 31, 2016, then subsequently Dec 31, 2017. How do I do this in QuickBooks?
This helped me out a lot. Thank you.
Cool! thanks so much for this!!!! This will be my first time closing for a client in Quickbooks - our fiscal year is April 1 through March 31, so in your scenario, I would use April 1, 2023 as any adjusting period entry to retained earnings?
Thank you Kevin! Yes that's correct whatever I do on 12/31 you would do on 3/31, and whatever I do on 1/1, you would do on 4/1.
I would like to know how to get ready for cpa.
If you have no contributions, would you credit a dividend (Shareholder Distribution) and debit Retained Earnings. Thank you
Hi seth
How do you set up a reoccurring monthly bill in quickbooks?
Like a monthly rent payment for example
Thanks
Hi Seth, from my bank statement under withdrawals/debits shows -$6.00, I wonder how can I record that amount into my QB. thank you
Sofia
Hello, I need to record a payroll ending period 12/29/2013, but the actually check will be pay on 1/6/2014. How I can do an accrued payroll entry.
I didn't see you actually hit the "Close Company" screen that appears in the dropdown under File. (I'm afraid to.) Where does this come into the picture?
+Gus Wah That's to close the actual company file. Nothing to do with closing the "Books."
pls I want to know how to close & change fiscal year end for quickbooks 2016
Our year end is 31/12/2014 for one month we have had no bank for this month, payments come in January 15 from customers for invoices raised in December 2014 into an Old co account How do I record these payments . can someone suggest the best solution . joe
HELP!! I am really new to QuickBooks. The problem is, I came into a situation where a previous employee NEVER reconciled the account (for years). So though we are not "in the negative" in real life, QuickBooks shows that we are in the red by thousands of dollars. I have the bank statements going back to January 2014. But I don't know how to make a "clean start"??? I would like to start with January... Please.... Please.... Please help me?!
Hi! What you will want to do is force the balance to whatever the statement balance is as of 12/31/13. This means you enter that ending balance in the reconcile screen. Then check off everything - be careful not to check off anything that may have been recorded in 2013 but didn't actually clear until 2014 - especially checks written right around the end of the year.
In the end you will have to plug the difference from all of the prior activity. Don't let QB do it for you. Book a check or deposit (whatever it takes to balance) for whatever difference you have. Us an Equity account called "Prior Period Adj." or something along those lines so it's very clear what you are doing.
Then you will have a clean balance going forward.
If you need more help, sign up for a session at www.QuickBooksAnswers.Info and I can log in with you and help you get this done.
if the net income is negative that means lost
teacher how l close when quick book point of sale 2013 connect in quick book
Very good job. Thanks
Thanks, very well explained.
Thank you!
Thanks very much for posting this. When I did my own book keeping (many) years ago using software called DacEasy, I had to manually close each month, and then each year. I'm assuming from your video that QB does that automatically based on the fiscal year dates. This would seem to indicate that further adjustments can be made after the fact.. true?
Yes. Exactly!
What about all the adjusting entries from your accountant - that affects the profit. Shouldn't you wait until you get those figures?
+June Cleaver You can certainly wait for that, but no need to. Once you get those entries you'll post them too. Of course you shouldn't consider the books closed, until you know you have everything.
How to make a journal entry adjustment to reflect what is in the bank accounts
You normally would reconcile the bank account and include any missing transactions in the process. As long as you are reconciled properly, you should never need a journal entry to correct the balance.
Very knowledgeable. I was wondering how do you handle payroll checks that are not deposited by employees by year end but are reflected on their W-2s, so technically the money has not left the account by year end.
Do nothing. They will clear in the following year. Meanwhile for your company it is an expense in the prior year. They payroll was "constructively received" by them, so they report the income and you report the expense.
The amounts will show up as an expense on both cash and accrual basis. Cash basis reports don't look at when they item cleared. They look at when the item was paid.
Nerd Enterprises, Inc. Thanks a lot
Thank you for the information...
Good Morning - I have a question about Accounts Receivable reports. I have 3 customers that are paid in full, but they show up on the report as zero. I have pulled up the customer in the payments The way to clear this zero balance is to click on Customer/Receive Payment and pull that customer up again. You will see that they have a credit waiting to be applied: This is not the case. Can you help me with this please.
I'd have to see it, to understand it. Normally if you see an invoice, and a payment or credit, zeroing it out, it means the payment or credit simply needs to be applied. If this is not the case, then I have no idea, unless I can log in, and have a look around.
Trying to figure out to record estimated tax payments and then clear them out at the end of the year.
The estimated tax payments can be posted to an asset account (like a pre-payment). Then when you get your actual tax bill, you can close out that account a number of ways. The simplest thing to do in Quickbooks is to post a bill for the taxes due (total amount). Then book a journal entry to close out the pre-paid taxes and apply them to the bill. If you still owe money, record a payment for the remaining balance on that bill. If you over paid then that amount will be left in the asset account which can be closed out when you receive and deposit the refund check.
Nicely done; thank you
Thanks for the video.
In conclusion, don't I need to make a journal entry closing income, costs and expenses against profit and loss summary account? Or I should do it although the system practically makes it automatic.
No, you would be duplicating what QuickBooks does automatically, and that would actually, likely make the books wrong.
Yes, that's exactly what I thought, thank you very much for answering my questions.@@nerdenterprises
So what method is the best? The one that you have shown in your tutorial or staying with QB 'continuous' method? Are there any IAS recomendations?
As I understand all other closing balances are transfered authomatically to the next year and I do not have to create any suspense account etc, don't I?
Correct. QuickBooks posts the closing entry for you based on your Fiscal Yearend. I don't know what IAS is. The only thing you may want to do in addition to QB's closing entry is close out the Equity accounts to R/E's. It's not so much a question of "best" as much as it is a question of preferences. I have had some people who felt that you HAD to close it all out to R/E so that the Equity accounts all stood on their own each year. Others want the permanent cumulative balances kept in there and they understand that the "true" retained earnings is the sum of all of the equity accounts.
Nerd Enterprises, Inc.
Thanks a milion. I like posting everything into retained earnings as it gives me an idea what happened during the year. But I will try to get in touch with my revenue office to check their preferences if any. NB. IAS stays of International Accounting Standards.
when ever i make sales quickbooks transfer them to undeposided fund ,and i dont want to use bank account i use cash on hand i need when ever i make sales automatical goes to cash on hand account so how
I think your comment got cut off here so I am not clear on what the question is. Based on what I see so far, you can only use cash on hand if in fact the money is never deposited into your bank account. Normally you capture the payments and group them in undeposited funds so you can match deposits in QuickBooks with deposits in the actual bank accounts.
Good stuff, as usual!
Harbourfront Tax & Bookkeeping 9
Can you please advise if there is special closing for expample 6 June How I must run it
hi please help i want to seperate the qucik book data . i have that since 2010 till date so due to this qucik book so heave so that's why we would to spilt in two parts could you please help me out in this matter
Hi! If you need some 1:1 help you can sign up on my website:
new.nerdenterprises.com/QuickBooks-Online-Bookkeeping-Staff-Accounting-Support
Please how do I start afresh the QuickBooks. Last year I had to do manual company accounts because the Balance Sheet was giving me unbelievable information. I have the hard copy of last year put did not do adjustment to the online system. I want to bring the last year manual accounts online and then do this year accounts online before 22 April 2020.
If the existing company's info was unreliable then start a new clean set of books and start with the beginning balances for any bank and credit card accounts and go from there.
Hi Seth. Thank you for your video! I am new to bookkeeping and wondering if O.C. and O.D. are put into RE to close out the previous year, does RE account get to be closed? Or it will continue accumulate $ amount year after year? Also, how do banks look and a high RE? Isn't bad for a business to show a high RE?
Hi Luda! Actually a high Retained Earnings is a really good thing. It means that the Equity or the book value of the business is growing. Banks LOVE that. In fact most small business owners kill this number because they take too much out in distributions.
I personally like to leave the Contributions and Distributions where they are, so the the Retained Earnings account is purely a measure of profits and losses accumulated year after year.
Some people like to close them out to Retained Earnings so they can see the current year Distributions, but all you need to do to see that is click on the number from the balance sheet, and you'll see a column that totals only the activity for that period that you ran it for.
I hope this helps! 🤓
@@nerdenterprises Thank you for your response. This is very helpful!
How many financial years record can be viewed for example if I want to view back 2017, 2018 such as
You can run a balance sheet for "All Dates" and total by year to see everything that is on the books.
Very helpful. Thanks. What about month end procedure?
Hi i think the best way is to set the closing date at the start of each new month .so that you lock that month and prevent further transactions being entered into that prior month.
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the "search" command in QB is very slow to respond. Can I speed it up by somehow "archiving" old years" data?
That could help, yes. The best thing to do is create a new company, and start fresh. You record all of your balances, and everything will run like brand new! Some people don't like the idea of losing touch with the data. You keep a backup in case you need to refer back to the old stuff, but believe me this is WAY better than purging data.
how to distribute income to partner
please point me to the year end section on quick books
There is no "year end" section. If you read through the comments here, there is some really valuable additional information on this subject. If you watch the video here you will see that if you WANT to, you can post some entries to clean up the Equity section based on the balances from the end of the prior year.
QuickBooks automatically posts the one closing entry you really need, which is to close out net income for the year to retained earnings.
Thank you It was usefull.
Hello, I need assistance in closing the books for 2023 for a small company. I am unsure of the necessary steps, particularly regarding closing entries. Is there a way I could reach out to you directly for some guidance
Hi you can visit our website and use the contact page to reach out and explain what you need help with!
Please please please help me with handling weekly member contributions in quickbooks. What is the best way to set up the members, accept weekly contributions (setting up accounts and accepting contributions). Do I accept contributions as payments or as sales receipts? I need to print annual contribution statements for all members. I haven't found anyone that can help me with this. Thanks so much!
Sorry with this awful new G+/TH-cam Commenting system I am missing a lot of comments/questions.
Search my channel (I can't post a link in a comment here) for Owner Contributions and you will find a video that answers your question speifically.
Let's see if this works..
Accounting For Owner Contributions and Distributions with QuickBooks
I'd like to give you 100 thumbs up on this one. Thank you!
Glad you liked it!
Hi Seth, what if I don't have an ending balance from the previous year?
Depends on what account we're talking about. If it's a bank or credit card account, you can request the statement to get the ending balance.
In other cases, you can back into the amount if you have enough "other" info, but I would need more specific information to provide you with a better answer.
H,quickbooks made the closing entry of members equity account, I would like to know how to fix it? thank you.
QuickBooks will close out net income to retained earnings. The only way I can see this happening is if someone renamed Retained Earnings to Members Equity.
Otherwise I would need more information in order to answer your question.
@@nerdenterprises thank you so much, the problem solved.
how to closed all account year ending like profit and loss,capital,investment trading,...
If you're using QuickBooks, your profit and loss net income automatically closes out to retained earnings on the 1st day of your fiscal year. The rest you have to post a journal entry to close out.
Hey Seth, can you clarify this for me..... company is an s-corp so i setup shareholder contrib and distrib accounts for each. At year end, do I create equity accounts for Shareholder Earnings and reallocate the Retainer earnings to these for the percentage owned? and then would I close out the shareholder contrib/distrib accounts to it at year end?
Actually in most cases you don't want to close out the Shareholder's Equity to R/E. I show that as an option in this video because people (clients) have asked me to do it. Balance Sheet accounts are meant to be permanent and cumulative, so you really want to see the permanent history of what was contributed, and what was distributed, by shareholder. For the earnings, you can create a third equity account called, "earnings" in each shareholder's section. So you book an entry for the net income from the year into each shareholder's earnings account for their share. This of course is based on their % ownership in the company. The offset would be retained earnings. So not only are you not closing out balances to R/E, you are in effect zeroing out R/E and distributing it to the shareholders.
My company's net income of 2020 is not transferring to the retained earnings of next year ie ,2021 by autatically.. Can you please help me.. if we have any option for this in settings to get this by automatically
If it is not closing out as of Jan 1 that usually means you have a different fiscal year set up. Check your accounting settings.
hi please advise me how to do The preparation, input and reconciliation of S&A actuals including review people cost transactions, posting month end journals and preparation of S&A reports
Hi can you clarify what you mean by S&A? And by "people cost transactions" do you mean payroll?
ANYBODY HERE knows if we should do the same with OPENING BALANCES? they seem to wanna stay there forever as well
he mentioned in an earlier post yes
Thank you
I don't have adjusting entry as a option to check that box like you did. How then do I adjust my prepaid insurance m supplies before l close my books for the year?
pandora y&B just post a journal entry. that check box is available in the accountants edition.
Thank you so much for your reply
Hi Seth, I have a question. I have searched for this report over and over. I need a P &L per Job. I print the report but it has all the Jobs across the top. He wants a P&L Summary of each job. We are a General Contractor and we are working with QB Enterprise. Can you help me :) .. Also do you certify for QB's Enterprise?
HI! What I would recommend is running the P&L By Job report and then filtering it to show just one job. Memorize that and then do that for each job. This way you have a P&L for a single job. There is no "P&L by Job Summary" per se. You can run a sales summary by job to see just the sales.
I don't certify, but I can certainly prepare you for a certification with my training services.
Awesome. Thank you so much. I got it. I was missing the
Filtering. Part. I will definitely get back with u.
I am new to a non profit small company. The QuickBooks data is really messed up. How can I close out old bad entries and start fresh for 2018
The answer to your question can vary depending on the situation.
You'll need SOMETHING to get a set of books for 2017.
For 2018, if it's that big of a mess, then it's probably best to start a new company. Book your beginning balances from statements, and roll it forward from there.
The other choice is to clean up the existing books.
The video you can download here (nerdenterprises.com/clean), will walk you through how to do just that. It's recorded for QuickBooks Online, but it's the exact same process with QuickBooks Desktop (in case that's what you're using).
The screens just look different, but a Balance Sheet is a Balance sheet. Period.
nerdenterprises.com/clean
How do I close out from previous years as far back as 2009? Is it the same way?
Yes. And you want to do the oldest year first because it's cumulative so what you do in one year will affect the equity accounts in future years.
should I backdate to each year or use this year that I am working in?
Backdate to each year.
Why does look different then the quick book I have?
Different versions and years. This video was done in 2013, so it was likely an older version than you are running now.
Here in the UK our Tax year is from the 6th of April to the 5th of April the following year..how does this apply?thanks Seth
If you want to close everything to retained earnings then you want to do it on day 1 of the year based on the balances as of the end of the previous year (1 day before). Other than that it all works the same.
Nerd Enterprises, Inc. Thanks very much Seth..you are very helpful
Hi, How can I create a new fiscal year in Quickbooks? Thank you.
As soon as you create a transaction in a new year, you've got a new fiscal year. In other words, there's nothing you need to do to "create" a new fiscal year. It happens naturally.
How do you transition into quickbooks from different a software closeout
+Penn Center 1862 Depends on the software. you were using, and what information you were able to import into QuickBooks. Generally speaking, you need to choose a clean cut-off date, and get the trial balance, as of that date, booked in QuickBooks. Then you'll need to fill in the details, like outstanding receivables and payables as of that date. I can help you much better with this, in a 1:1 session - www.schoolofanswers.com
I like your year end video, could you please help me out about depriciation of equipment for trucking company?
Hi! Please feel free to sign up for 1:1 with me, so I can help you with any specific needs - www.SchoolofAnswers.com - I look forward to working with you!
How do you import a general ledger account to another company file?
+Apas Service Depends on what you are importing to / from.
Hi. I was just wondering about closing temporary accounts because I have read somewhere when you finish the prior years books you are supposed to close the temporary accounts. Could you help on this? Thanks.
Depends what you mean by "temporary accounts."
This video was recorded years ago. These days I have a different process. I don't actually like closing Distributions and Contributions (or anything) to retained earnings. I like keeping that account pure so it only shows cumulative earnings and losses.
@@nerdenterprises "Temporary accounts refer to accounts that are closed at the end of every accounting period. These accounts include revenue, expense, and withdrawal accounts. They are closed to prevent their balances from being mixed with those of the next period. Also known as: Nominal accounts, Income statement accounts."
that was quoted from accountingverse.com
@@asmith6076 So 40 years ago, before accounting was done on computers you needed to record these kinds of entries to close the books. Very large companies that use enterprise level accounting software need to do their own closing entries. For small businesses who use QuickBooks or QuickBooks Online to handle the accounting, the closing entries are essentially done for you.