Closing an accounting period

QuickBooks does not require you to “close the books” at the end of a period. However, you may want to restrict access to the transactions of prior accounting periods to be sure that no one changes the transactions without your knowledge. You can do this by setting up a transaction password.

To close an accounting period:

  1. Choose QuickBooks > Preferences and click Passwords.
  2. In the Transaction Password section of the Password Preferences window, enter the date through which your books are closed.
  3. Enter the text of the password.