Ask the Accountant…
Question: I have set a closing date in my QuickBooks, but my employees keep making entries in the previous year anyway which messes up my books for last year. Is there a way to stop that?
Answer: The best way to avoid that problem is to set a password when you set a closing date. I read a great suggestion from Ruth Perryman, owner of softwarediscountcenter.com. She recommends a password that warns of the financial consequences if the closing date is overridden. She recommends “200Bucks$$$,” which is what she charges any of her clients who require their books fixed if entries are made in a previously closed period. That number is probably significantly higher with inflation now, so you might want to adjust that number upwards, but you get the idea.
Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor of 23 years. She advises ad specialty distributors about using QuickBooks Premier & Enterprise, and SAGE Online to save time, eliminate errors, and correctly account for your business. Her specialty is converting distributors from ProfitMaker, SmartBooks, OrderMaster, AIA, and other accounting systems.
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