Follow us:

  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram



A Guide for Bookkeepers: Closing out 2020

Feb 14, 2021 1:15:00 PM Cheryl Coyle QuickBooks, Bookkeeping, Accounting, accounts receivable

close out the books It's time to close the books on 2020, but before you close the year in QuickBooks, you need to ensure a few things are done.

Make sure you:

  1. Reconcile and Review Bank and Credit Card Statements – once you complete the reconciliations, ensure the ending balances agree with those found on the balance sheet and general ledger. You may have to consider uncleared transactions.
  2. Billings – make sure you have billed for all of your 2020 work.
  3. Check Accounts Receivables – do you have uncollectible accounts to write-off as bad debt?
  4. Ensure Accuracy of Accounts Payable – are there duplicates or uncategorized expenses?
  5. Inventory – if you have it, make sure you have a count as of December 31st.
  6. Payroll Liabilities - if you use a clearing account, ensure it has a zero balance. Check to ensure that your payroll tax deposits match the quarterly return.
  7. Check your balance sheet and profit & loss - does everything make sense? Are there gaps in expenses? Do you have uncategorized income?
  8. Record Depreciation

Don’t forget to close the year in QuickBooks. Once you have made all the necessary changes, you don’t want to make a mistake and change anything in a prior year. Closing your books will ensure you don’t make that mistake.

Procedure to close the books in QuickBooks Online:

Go to Settings, select “Advanced” and turn on “Close the books.”


Visit us at to see how we can help ensure the accuracy of your bookkeeping prior to preparing your taxes.


New Call-to-action

Cheryl Coyle

Written by Cheryl Coyle