Using the QuickBooks Closing Date

Many companies favor QuickBooks over other accounting systems because of its ease of use and flexibility, however, this flexibility brings a few challenges...  One of these challenges is that QuickBooks allows historical transactions to be updated or deleted, even after completing a bank reconciliation, or more concerning, after a tax return has been produced.  Using the closing date properly will prevent these problems and so we highly recommend setting the closing date after each month's close by going to the Company Preferences on the Accounting tab and setting the date and password.

How to Remove or Void a Check in QuickBooks

Using the closing date will also prevent you from voiding or deleting a transaction dated before the closing date, so the regular means of voiding the transaction from the edit menu will not work.  For this reason and for a more complete trail of the transactional flow, we suggest creating an offsetting entry dated on the date the transaction is voided rather than using the void feature from the edit menu.  This offsetting transaction will then be matched with the original transaction in the reconciliation to clear the transaction.
For more information on voiding or modifying transactions dated in prior periods and how this might affect bank reconciliations or tax returns, give us a call to discuss.