Keeping on the Accounting Preferences section, under Company Preferences, we are going to look at a few options a CPA or bookkeeper would use. These are safeguards to try to keep mistakes from happening.
The first is one of the most important warnings QuickBooks can give you! Always make sure the ‘Warn when posting a transaction to Retained Earnings’ box is checked. Unless a CPA or bookkeeper gives you entries to make, you should never post anything to retained earnings. Doing so will cause you and your CPA time and money. The CPA will have to track down the transactions that were made, then reverse them out before they can prepare a tax return.
The second option that might be used after a tax return is completed by a CPA or bookkeeper is Closing Date. This feature can be set with a date and a password. A CPA might use this after the tax return is completed to make sure nobody goes back into that tax year and make changes that would disagree with the tax return. If you have multiple people in your QuickBooks file, this might be a good option when you close out a month. Only the Administrator can set a closing date.