You may not be able to understand year-end-closing, but QuickBooks simplified the process for you

This user of mine was formerly using UBS accounting software. She just switched over to QuickBooks. She asked me how to start a new period in QuickBooks.

In QuickBooks there is no "period". Unlike some accounting software that you have to do batch posting for your transactions, opening new period for your entries, set document date, posting date, and etc.

In QuickBooks, it is controlled by a single date. Usually, we will use it for a document date; such as your invoice date or bill date.

Since QuickBooks is easy for layman to understand, so it uses only one single date to control the transaction. For example: if you enter an invoice dated 28 July, this income will be shown in your July's Profit and Loss report.

To simplify the process QuickBooks does not need to do any year-end-closing. Base on the first month of your financial year that you had set in QuickBooks, it will automatically calculate the twelve months profit or loss figure to produce a Retained Earning amount for your following financial year.

This feature helps business owner who does the accounts by themselves. Layman may not be able to understand how to do a year-end-closing for their accounts, but QuickBooks simplified the process for them.

Comments are closed.