How to Close Year-End in QuickBooks Desktops?

Yes, I know—if you’re reading this, you’re already aware of the big change on the horizon.

QuickBooks Desktop, the accounting tool you’ve relied on for years, is being discontinued. 

It’s understandable if this news feels disruptive. After all, the Desktop has been a steady choice, keeping your data secure right on your computer and giving you full control over your finances.

But here’s the good news: this shift doesn’t have to be overwhelming. 

In fact, it can be an opportunity to streamline your accounting and even simplify your year-end process. How?

In this guide, I’ll walk you through exactly what to do now.

By the end, you’ll have a clear, actionable plan to keep your finances organized and ready for the future.

Ready to take control and make this transition work for you? Let’s get started!

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What is QuickBooks Desktop?

So, let’s start with the basics. 

In case you are wondering what QuickBooks Desktop actually is, let me break it down for you. 

QuickBooks Desktop is an accounting software that you install right on your computer. 

Unlike QuickBooks Online, which is based in the cloud (meaning you can access it anywhere with the internet), QuickBooks Desktop keeps everything local.

Your financial data sits on your computer or, if you prefer, a secure server you control. 

Now, this is important because if you’re handling sensitive or complex financial records and want full control over your data, QuickBooks Desktop might feel like a solid, reliable option. 

You’re not dependent on an internet connection, and you don’t have to think about cloud security concerns.

For businesses that want to keep things simple, straightforward, and offline, this is a big plus.

But Here’s the Catch – QuickBooks Desktop is Being Discontinued. 

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Discontinuation of QuickBooks Desktop: What You Need to Know

I understand that if you’ve been using Desktop for years, this can feel like a big shift. 

You might be wondering why this change is happening and what it means for your business. 

The reason is simple—QuickBooks Online is built to be more flexible, secure, and easy to manage, especially in today’s fast-moving business world.

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How to Transition from QuickBooks Desktop to QuickBooks Online

If you’re ready to make the switch, here’s a straightforward plan to help you transition smoothly:

1. Choose What Data to Move Over‍

First, think about what data you actually need in QuickBooks Online. You can transfer everything—transactions, customer and vendor lists, balances—or just the essentials, like account balances and key lists. 

Moving only the important items can help keep your new QuickBooks Online account clean and easier to manage.

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2. Use QuickBooks’ Migration Tool

QuickBooks has created an online migration tool to make switching easier. This tool guides you through the steps to move your data from Desktop to Online. 

Just follow the instructions, and your data will be ready for you in QuickBooks Online in no time.

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3. Get Help if You Need It

If you’d rather not handle the migration yourself, QuickBooks offers a free service to move your data for you. 

This can be a good option if you want the peace of mind of knowing everything is set up correctly right from the start.

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4. Get Familiar with the New Features

Once you’re in QuickBooks Online, take a bit of time to explore.

You’ll notice features that make accounting simpler—like real-time access from any device, automatic updates, and cloud backups. 

These tools are designed to save you time and reduce your workload, making your financial management easier than ever.

In short, if you’re ready to switch, you’re on your way to a system that’s built for today’s business needs. 

QuickBooks Online will help you work faster, stay organized, and focus on what matters most—growing your business.

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Why QuickBooks Online is the Future (And Why That’s Good News for You)

Let’s talk about why moving to QuickBooks Online isn’t just the next step—it’s a smarter, simpler way to handle your finances. 

Here’s why I think you’re going to love this shift:

Work Anywhere, Anytime: 

Imagine the freedom to check your finances wherever you are. With QuickBooks Online, you’re not tied to one computer anymore. 

Whether you’re at home, on a business trip, or just using your phone, you can easily manage your finances with an internet connection.

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Say Goodbye to Manual Updates and Backups: 

If you’ve been using Desktop, you know what a hassle it can be to stay updated and backed up.

But with QuickBooks Online, updates and backups happen automatically. 

No more worrying about whether you’ve got the latest version or remembered to save everything. 

QuickBooks Online takes care of it, so you can focus on running your business.

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Real-Time Collaboration Made Easy: 

Let’s say your accountant or team needs to see your books. Instead of emailing files back and forth.

QuickBooks Online allows everyone to log in and work on the same live data.

 No version conflicts, no confusion—just smooth, efficient teamwork.

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Manage Finances on the Go: 

QuickBooks Online’s mobile app is a game-changer. Need to send an invoice while out of the office? Or track an expense on the spot? 

You can do it all from your phone, so you’re always in control, no matter where you are.

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Grow Without Limitations: 

Whether your business is small now or ready to expand, QuickBooks Online grows with you. 

As your needs change, you can add users, access more detailed reports, and upgrade to advanced features without switching platforms.

I get it—change can feel overwhelming, especially when it comes to something as critical as your accounting software. 

But QuickBooks is here to make this transition easy, even offering special support and guidance to help you along the way. 

So, think of this as an opportunity to embrace a system built for today’s fast-paced business world. 

QuickBooks Online isn’t just an upgrade; it’s a tool designed to help you work smarter and faster without the headache of constant updates or backups.

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What are the Steps to Close Year-End in QuickBooks Desktop?

I know it is getting discontinued, but let’s still see the process after we all know how vital year-end closing is. 

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But if you want to save time and move to QuickBooks online, here’s a detailed guide on how you can close your books in QuickBooks Online. 

But for now, let’s get into the process of closing your books using QuickBooks Desktop. 

Step-by-Step Guide to Closing Year-End in QuickBooks Desktop:

1. Review and Reconcile All Accounts

Before you officially close the year, you want to make sure all your accounts are accurate. Here’s what you need to do:

• Review Transactions: Go through your transactions for the year and ensure everything is entered correctly, including income, expenses, payroll, and any other financial data. 

You don’t want to miss anything!

• Reconcile Accounts: You should reconcile all bank accounts, credit card accounts, and any loans to match them with your bank statements. 

This step ensures that your books and bank records align perfectly.

How to Reconcile:

• Go to the Banking menu > Reconcile.
• Select the account you want to reconcile and follow the prompts to check your balances against your bank statements.

2. Make Adjusting Entries (if needed)

Sometimes, you need to make adjusting entries to correct things like depreciation, accruals, or inventory adjustments before you close the year. 

These are entries that adjust your financial records to match actual figures.

• For Example: You might have to record depreciation on a company vehicle or adjust for unpaid bills that were carried over.

If you’re unsure about what adjustments to make, it’s a good idea to check with your accountant before moving forward.

3. Run Year-End Reports

Next, you want to make sure everything looks good by running some reports. This helps you see the big picture and catch any errors before closing.

• Important Reports to Run:
  • Profit & Loss Report: This shows your company’s revenue and expenses for the year.
  • Balance Sheet Report: This gives you a snapshot of your company’s financial health.
  • Retained Earnings QuickReport: This will show any closing adjustments made automatically by QuickBooks.

How to Run Reports:

• Go to the Reports menu, select the report type, and then set the date range to the end of your fiscal year.

4. Set a Closing Date

Now that everything is reconciled and your reports are in order, it’s time to close the books by setting a closing date. 

This date acts like a lock that prevents changes to your financial data for the previous year unless someone has the password you set.

How to Set a Closing Date:

• Go to the Company menu > Set Closing Date.
• Select the date (usually the last day of the fiscal year) you want to close, and then enter a password.
• Click OK to confirm.

By setting a closing date, you’re preventing accidental changes that could mess up your final reports or tax filings. It’s like putting a seal of approval on your financials.

5. Backup Your Data

This step is super important! Before you finalize the year, make sure you create a backup of your QuickBooks file. 

If anything goes wrong later or you need to look back, you’ll have a copy of your books exactly as they were at year-end.

How to Create a Backup:

• Go to the File menu > Create Backup.
• Choose where to save the backup (external hard drive, cloud, etc.), and follow the prompts to finish the process.

6. Optional: Use Closing Date Exception Report

After setting the closing date, QuickBooks provides an additional safety net by letting you run a Closing Date Exception Report. 

This report shows any changes made after the books were closed, so you can easily track any adjustments or mistakes.

How to Run the Closing Date Exception Report:

• Go to the Reports menu > Accountant & Taxes > Closing Date Exception Report.

This report will let you know if anyone (even with the password) makes changes to closed transactions.

7. Begin the New Fiscal Year

Once you’ve set the closing date, made adjustments, and backed up your data, you’re ready to start fresh in the new fiscal year. 

QuickBooks Desktop will automatically transfer any profit or loss from the previous year into the Retained Earnings account. 

This means you start the year with a clean slate.

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Why Is Closing the Year-End Important?

Closing your year-end ensures your financial records for the previous year are locked in and accurate. 

It also means that when you start the new year, you won’t accidentally mess up your books by altering past transactions. 

Plus, it gives you a fresh start to focus on the new year’s financials without worrying about lingering issues from the previous one.

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In Summary: The Process

• Review and reconcile all your transactions and accounts.
• Make any adjusting entries if necessary.
• Run year-end reports to double-check your data.
• Set a closing date to lock your books for the year.
• Backup your data to safeguard your financial records.
• Optionally, run the Closing Date Exception Report to monitor any post-close changes.

I hope this guide helps you feel confident when it’s time to close your year-end in QB  Desktop. 

Once you get through it, you’ll have a clean, organized set of financials ready for the next year! 

Now that we know the process involved, let’s move on to the pricing of QuickBooks desktop. 

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How much does QuickBooks Desktop cost?

Now here’s a comparison of the pricing of QuickBooks Desktop and Online. 

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Pricing explained: 

QuickBooks Desktop Enterprise (Gold)

• Pricing: $1,922/year
• Best For: Larger businesses needing up to 40 users and advanced accounting features.
• Key Features:
  • Advanced inventory management with tools for multiple warehouses and barcoding.
  • Multi-company management and intercompany transactions, ideal for businesses with complex structures.
  • Extensive customization with batch processing and tailored reporting.
  • Optional cloud access and Salesforce CRM integration as add-ons.
• Payroll: Built into the Enterprise Gold subscription, with options for higher payroll plans in Platinum and Diamond.

QuickBooks Online Plus

• Pricing: $99/month (discounted to $49.50 for 3 months)
• Best For: Small to medium businesses needing basic accounting and reporting features with remote access.
• Key Features:
  • Income and expense tracking, invoicing, and sales tax management.
  • Basic inventory and project profitability tracking.
  • Mobile app access and cloud-based flexibility, suitable for businesses with remote teams.
• Payroll: Available as an add-on starting at $6 per employee per month.

QuickBooks Online Plus + Payroll Core Bundle

• Pricing: $149/month (discounted to $74.50 for 3 months) + $6 per employee/month
• Best For: Businesses needing both accounting and payroll services.
• Key Features:
  • Includes QuickBooks Live Tax support with full-service payroll.
  • Automated taxes and forms with direct deposit options.
  • Health benefits and 401(k) options for employees.

QuickBooks Online Plus + Payroll Premium Bundle

• Pricing: $184/month (discounted to $92 for 3 months) + $9 per employee/month
• Best For: Businesses looking for advanced payroll with added employee benefits.
• Key Features:
  • Same-day direct deposit, next-level employee benefits, and HR support.
  • Comprehensive employee and payroll management with same-day direct deposit.
  • Includes 24/7 support, making it ideal for businesses needing premium assistance.
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Is the Discontinuation of QuickBooks Desktop Good or Bad?

Switching to QuickBooks Online from QuickBooks Desktop might seem like a big change, but it’s one that brings a lot of benefits. 

And here’s the thing—if you’re going to make the switch, you can why not make your accounting process even smoother. ?

Let me show you howThat’s where a tool like Xenett can step in. 

Close Overview

Let’s break down exactly how Xenett can make your work life easier and why it’s worth considering as you transition to QuickBooks Online.

When you’re dealing with accounting, there’s a lot of repetitive work—reviewing transactions, checking for discrepancies, and making sure your numbers add up. 

If you’re anything like me, those tasks can be a real-time drain.

I mean, who wants to spend hours manually combing through every transaction? Xenett takes this tedious work off your plate by automating the review process.

Imagine having a tool that flags unusual transactions for you so you’re only focusing on the things that truly need your attention. 

This is a huge time-saver, and it helps reduce human error, which we all know can sneak in when we’re trying to wrap up month-end reports or year-end closes.

Let’s talk specifics. With Xenett, you can set up customized review points. This means you get to decide which types of transactions or data points need an extra look. 

Maybe you want to keep an eye on vendor payments that often go wrong or track specific expenses that vary month to month. 

Xenett lets you tailor these settings so that it’s focusing on what matters most to you. 

For example:

• Flagging Irregular Transactions: If you have certain expense categories or vendors that tend to fluctuate, you can set Xenett to watch for unexpected amounts, saving you from having to dig into every single line.

• Speeding Up Month-End Close: When month-end rolls around, Xenett can quickly scan your transactions, highlight any discrepancies, and ensure that your books are balanced. 

It’s like having an extra set of eyes on your finances, so you’re not rushing through it all by yourself.

• Consistency in Financial Data: Xenett can help catch small errors that might otherwise be missed, like duplicate transactions or miscategorized expenses. 

These may sound minor, but they can add up and make a big difference in your reports over time.

Now, I know you might be wondering, “Do I really need this if QuickBooks Online already has some automation features?”

That’s a fair question. 

QuickBooks Online does a lot of the basics really well—things like invoicing, tracking expenses, and running basic reports. 

But when it comes to detailed reviews and maintaining data accuracy, Xenett is like a safety net. It ensures that nothing slips through the cracks. 

For those of us who want that extra layer of security and accuracy, Xenett offers a level of automation that’s hard to beat.

Another thing I love about Xenett is how it simplifies team collaboration.

If you work with a team, especially remotely, you know how frustrating it can be to keep everyone on the same page. 

With Xenett, everyone sees the same, up-to-date information, and all comments or updates are right there in one place. 

No more back-and-forth emails or chasing down updates.

Whether you’re working with your internal team or an outside accountant, Xenett makes sure everyone is aligned.

The best part?

Xenett doesn’t make you overhaul your process—it just makes everything smoother. 

Instead of getting bogged down by the repetitive parts of accounting, you’re free to focus on making informed decisions and growing your business.

And really, isn’t that what we all want?

If you’re moving to QuickBooks Online, integrating Xenett could be the missing piece to a streamlined, efficient, and reliable accounting process. 

It’s not about adding complexity; it’s about making your workflow as simple and accurate as possible, giving you the time and confidence to focus on what really matters.

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Wrapping It Up: A Simple Recap of Closing Year-End in QuickBooks Desktop

Closing out the year in QuickBooks Desktop may seem daunting, but following these steps—reconciling accounts, making adjusting entries, running year-end reports, setting a closing date and backing up your data—keeps your financials organized and ready for the new year. 

These steps aren’t just good practice; they’re essential for maintaining clear, accurate records.

Now, with QuickBooks Desktop being discontinued, it’s a good time to consider moving to QuickBooks Online. 

Trust me, it’s worth it. QuickBooks Online makes life easier with real-time access from any device, automatic updates, and smoother collaboration with your team or accountant. 

No more worrying about outdated software or manual backups—it’s all taken care of.

And to make this transition even better, I’d recommend adding Xenett to your toolkit.

Xenett can take over some of the heavy lifting by automating transaction reviews, flagging irregularities, and simplifying team collaboration. 

Ready to make year-end closing a breeze? Give Xenett a try and see how it can streamline your accounting, leaving you free to focus on growing your business in the new year.