Yearend procedure?

Question

HiWhen I used to use Quickbooks a few years back, there used to be anAccounting Yearend procedure checklist, both in the printed manual and inthe built-in help system.Looking at QB2005Pro now for a friend, I can't see any advice on AccountingYearend procedures at all, not a mention.Is there still a checklist available somewhere that I am failing to find?If not, can anybody advise?Do I need to enter yearend journals to adjust balances to match theAccountant's figures?If so, should these journals be entered into the last day of the previousyear, or the first day of the current year?Should they be affect the Retained Earnings account or the Opening BalEquity account (e.g. Debit Sales and Credit Retained Earnings?)Any help or advice gratefully receivedRonaldo

Allan Martin · Accepted Answer

Do you really have to ask?Why do you think they are called year end adjustments?Only if the company ends up with a profit or a loss. In the event the results are zero there will be no effect. If you are asking if one actually posts to theses accounts the answer is no. The program handles this automatically.

Ronaldo · Answer

Thank you for your reply Allan, you have given me the little bit ofreassurance I needed.Quickbooks works so differently to the other accounting systems I am usedto.

Allan Martin · Answer

Naturally the first thing that should be done is to contact the accountant. Let the accountant know that it is the desire of the client to have their accounting records agree with the any financial statements issued and or tax returns filed.

Find out what was done in the past. I can tell you from first hand experience that there are many instances where modifications and adjustments to a client's books are not conveyed to the client. Likewise in theses situations the client is not concerned. All that matters is that their tax returns are filed and that they pay as little as possible in professional fees.

Yearend procedure?

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