Year-End Closing Posting Guide for QuickBooks Online

1. Reconcile ALL Balance Sheet Accounts: Ensure all bank accounts, credit card accounts, loan accounts, fixed asset accounts, and other balance sheet accounts are fully reconciled through the fiscal year-end date. Go to 'Accounting' > 'Reconcile' for each.

2. Review Accounts Receivable Aging: Run the 'Accounts Receivable Aging Summary' report ('Reports' > 'Who owes you'). Identify and write off any uncollectible accounts using a 'Journal Entry' ('+ New' > 'Journal Entry') to an 'Bad Debt Expense' account.

3. Review Accounts Payable Aging: Run the 'Accounts Payable Aging Summary' report ('Reports' > 'What you owe'). Ensure all vendor bills are accurately recorded and paid, or accrue any unbilled expenses.

4. Post Year-End Depreciation and Amortization: Calculate and post final depreciation for fixed assets and amortization for intangible assets for the entire fiscal year. Use a 'Journal Entry' ('+ New' > 'Journal Entry').

5. Accrue Year-End Expenses/Revenue: Record any significant expenses incurred but not yet paid (e.g., year-end bonuses, large utility bills) or revenue earned but not yet invoiced. Use 'Journal Entries'.

7. Adjust Inventory (Physical Count/Valuation): If you manage inventory, perform a physical count and make any necessary adjustments in QBO ('+ New' > 'Inventory Quantity Adjustment') to match actual inventory levels. Review inventory valuation.

8. Review Payroll Liabilities and Tax Payments: Ensure all payroll liabilities (e.g., taxes withheld, benefits) are reconciled and all required tax payments (e.g., 940, 941, state unemployment) have been made and recorded.

9. Reclassify Owner's Draws/Contributions (for Sole Props/Partnerships): Review and reclassify any personal owner's draws or contributions made throughout the year to the appropriate equity accounts. Use 'Journal Entries'.

10. Generate and Review Year-End Financial Statements: Run the 'Profit and Loss' (Income Statement) and 'Balance Sheet' reports for the entire fiscal year ('Reports'). Scrutinize them for accuracy and consistency.

11. Consult with Tax Professional/Accountant: Share your year-end financial reports with your tax advisor. They may recommend additional year-end adjustments or reclassifications for tax purposes.

12. Set Closing Date in QBO: Once all year-end adjustments are complete and reviewed, set a closing date in QuickBooks Online ('Gear icon' > 'Account and settings' > 'Advanced' > 'Accounting' > 'Close the books') to protect prior period data.