Quickbooks closing entries are all those entries that are made at the end of an accounting period to zero out all the temporary accounts and transfer its balance to any permanent account. It is basically a very important process of removing the unwanted temporary account from a permanent account in order to close the book. Temporary account basically an income statement account that has been used to allow to track the activity during a current period of time. It is totally used as closing the entries at the end of the year.
Basically, Quickbooks Closing entries consists of so many reports such as –
- Audit trail report
- Closing data report
- Voided / Deleted transaction report
- Retained earning a quick report
Audit trail report-
- It basically deals with all the transaction that has been listed out from the account.
- It is the most important tool that has been used to highlight all the files as well as all the people who somehow use the files in the past.
- It’s actually possible only when the user can log in into a quickbooks closing entries.
Closing data report –
- It’s basically used to show the transaction, change in any current type of transaction or something added before its closing date.
- The closing data report used to protect the data as it generally locks the user’s file so that no one can easily able to edit for some after or before a specific period of time.
Voided / Deleted transaction report-
- It usually creates the activity log of all the usual transactions of all the deleted and voided files.
- It also allows to track those such types of files that did n’t mention a closing date or transaction is dated in previously reported time respectively.
- If you find any queries regarding the transactions then you can easily click the transactions then Quickbooks closing entries give you the information of all the transactions regarding the account.
Retained earning a quick report –
- “Retained earnings Quickbooks closing entities is the total amount of net income that has been left for the business after he has paid out all the shares to its stockholders.”
- The basic objective of retained earnings is to divide the equal number of shares to the individuals.
- Basically, the formula used to calculate retained earnings in Quickbooks closing entries is –
Beginning retained earnings + profits/loss – Dividends that come ending retained earnings.
- It is also be used to launch a new type of product in the market.
- For verifying the total amount of retained earnings for the company that has been used for QuickBooks closing entries should be considered by the following –
- The age of the company should always be matter.
- Equally dividend policy should be there.
- A high profitability percentage should always be a matter.
We hope that this article helpful for you for closing entries in Quickbooks. otherwise , you need more information about Quickbooks to contact them Quickbooks support phone number +1877 715 0222. We are provide all solution instantly.