Set a closing date on the QuickBooks accounting software
Besides pricing and ease of use, ease of amending errors in QuickBooks is one of the reasons why business owners, bookkeepers, and accountants love using QuickBooks. Of course, although QuickBooks allow you to amend the transaction, it does not imply that you are allowed to do so. For example, you discovered that you made a mistake in the quantity sold on an invoice. You have the option of:
- Amend the invoice if you have not yet delivered the goods.
- Use an adjustment note and reissue an invoice to correct the mistake if you have already delivered the goods or sent the invoice to the customer (or if the invoice was before the current financial period).
Consult your accountant before you make any changes to your book; they are the best person to advise you whether to “amend” or correct the error with the appropriate documents.
Ease of amending is also a nightmare to the accountants.
To prevent unauthorised editing of the QuickBooks file, you may use the set closing date feature to “lock” up your financial records. The user needs the password to unlock before saving the transactions dated before the closing date.
QuickBooks Online (QBO)
From the Gear icon of the QuickBooks Online (QBO) page, select Account and Settings, then go to the Advanced tab to set the closing date (close the books field). You have the option of:
- Allow changes after viewing the warning.
- Allow changes after viewing the warning and entering a password.
The latter gives better control if multiple users are accessing the data.
QuickBooks Desktop (or Reckon Accounts)
You can access the set closing date feature from the company menu if you are using Intuit QuickBooks Desktop (or Reckon Accounts). QuickBooks will launch the Accounting preferences once you click on the set closing date feature, then click the “closing date/password” button to enter the closing date and a password.
Although you can prevent unauthorised editing by setting up a closing date for your account, it does not prevent you from being a victim of cybercrime. Besides taking necessary cybersecurity measures, you should regularly back up your financial data. Better be safe than sorry.