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Why Should You Set a Closing Date in QuickBooks?

We are fast approaching tax time! And that means it's time to update the closing date in your QuickBooks.

We really recommend setting a closing date in your QuickBooks and password protecting it after your tax returns, both annual and quarterly, have been filed. Setting it after you have reconciled all of your cash accounts isn't a bad idea either. If a user accidentally changes something from a prior period, your checking account reconciliation could be thrown off, or your books won't match your tax return, which means extra time and hassle for you trying to figure out what went wrong.

So let's set that closing date!
To set your closing date in QuickBooks Desktop, go to Edit, then Preferences. When the Preferences window pops up, click on "Accounting" on the left, then on the Company  Preferences tab. Toward the bottom under "Closing Date," select "Set Date/Password."

To set your closing date in QuickBooks Online, click on the gear icon in the upper right, then on Company Settings toward the left. Click on the advanced tab; then under the Accounting heading, click on the pencil in the upper right corner to edit the accounting settings. Enter your closing date, and in the drop down, select "Allow changes after viewing a warning and entering a password." Enter the password you wish to use, and click on Save.