Closing your books: How to protect your Last Year’s Audited Report or Prior Transaction Enteries in QuickBooks

It has really been a rainy day here in Lagos and my schedule is already interrupted as a client that I have already planned to set up their opening balances on QuickBooks Accounting Software felt disappointed following the unexpected change in weather. Well, I would have to re-schedule our appointment.

However, I still had a successful meeting with a prospect who is very much interested in learning how Quickbooks Accounting Software can accurately track his business finance.

During the course of our discussion, he asked a very important question, which is the thrust of this post:

How Do I Protect My last financial report or secure a prior transaction from being manipulated or altered?

For readers, who are thinking of how this can be integrated into their business, here is how I do it for my clients.

When you record all your financial transactions in QuickBooks, at the end of your accounting period, QuickBooks-based on the date you selected - will close your books and generate a complete final account for your business in respect of that accounting year.

In order to protect these account or ledger entries from alteration, Quickbooks can help you build a wall around it.

Here are the steps:

From the QuickBooks Menu, Click Edit and Select Preference:

A Preference window pops:

1.       Click Accounting
2.      Click Company Preferences

When you Click SetDate/Password, QuickBooks will prompt you to choose a closing date- this means that all the transactions recorded before the closing date cannot be changed without your consent.

Click Ok to save changes.

With these settings, all the transactions entered before the closing date is very much secured and intact.

For questions or comments, post below.