How to Close and Lock Your Books in QuickBooks
- Jon
- May 7
- 2 min read
Introduction: When it comes to protecting your business finances, closing and locking your books every month is a simple yet powerful tool. This process prevents unauthorized changes, protects against fraud, and keeps your records accurate. In this blog post, Jon Markee, your Builder CPA, walks you through why and how to close your books in QuickBooks to maintain financial integrity.
Preventing Unauthorized Changes
Leaving your books open means anyone with access can alter past transactions—either by accident or with malicious intent. This can distort your financials and even open the door to fraud. By closing the books monthly, you make sure that already reconciled periods stay clean and untouched.
A Common Fraud Risk
One method of financial fraud occurs when someone edits a transaction from a prior year and then covers their tracks by manipulating current entries. This type of activity can go unnoticed for months if the books aren’t locked. A monthly close acts as your first line of defense against this type of tampering.
How to Lock the Books in QuickBooks
Go to the Gear icon in the top right corner.
Click on Account and Settings.
On the left-hand menu, go to Advanced.
Scroll down to the Close the books section.
Set a closing date to lock all transactions prior to that date.
Decide whether to just show a warning or require a password to make changes.
Enter a password and hit Save.
This ensures no one can accidentally (or intentionally) make changes to past records without approval.
Flexibility When Needed
Locking your books isn't permanent. If you need to make adjustments in a prior period, you can simply change the closing date temporarily. Once your changes are complete, reset the close date to protect your data moving forward.
Conclusion
Closing your books every month keeps your records accurate and shields your business from errors and fraud. It’s a best practice that takes only a few minutes but offers long-term peace of mind. For a step-by-step walkthrough, check out the latest video from Jon Markee, your Builder CPA.
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