Doing your own accounting in accounting software such as QuickBooks Online (QBO) is relatively straightforward especially if you have set up your QBO file optimally. You periodically enter invoices, expenses, bills and allocate transactions from the banking download. And while QBO is designed for non accountants, it is also equally appreciated by many accountants for its simplicity and user friendliness (although, as with any software product, there are grievances).

There does come a point, however, when you might notice that some things don’t look right. The bank balance or credit card balance might not match to the QuickBooks balance or your income and/or expenses might seem much too high or inconsistent with previous years. The solution to identifying and fixing these discrepancies is to perform what accountants refer to as year end (or month end) closing procedures, that if done properly, should correct any discrepancies that crop up. The ultimate goal of closing the books monthly or annually is to ensure that you can rely on the integrity of your data.