Setting a locking date and password is an important part of keeping clean financial records. When you are finished with data entry, reconciliations and allocation for a given period, set the closing date for the last day of the period to prevent other users from making changes. You must be an Advisor (Xero) or Admin (QuickBooks) to set the closing date and password.
Directions for Xero
- Click Settings > General Settings, then Financial Settings. Under Lock Dates, you have two options:
- The first date will stop all users except Advisors from making changes on or before a given date. Use this date for the most recent reporting period that has been closed. For example, if your organization uses a budget forecast, and the prior month’s activity has been used to update the forecast, you would set this date to the last day of the prior month.
- The second date will stop all users, including Advisors, from making changes on or before a given date. Use this date for the most recent period that has been reported to a tax agency. For example, if you are a nonprofit, and your organization has filed the 990 for last calendar year, set this date to December 31st of last year.
- Once you have set these dates appropriately, click Save.
Directions for QuickBooks PC versions
- Click Edit > Preferences. Select Accounting at the left, then Company Preferences. Where it says Closing Date, click Set Date/Password.
- Under Date, set the last day of the period you want to lock.
- Under Password, enter the password and re-enter it to confirm.
- Click OK.
Directions for QuickBooks Mac versions
- Click QuickBooks > Preferences.
- Under General, click Users & Passwords.
- Click Set closing date.
- Next to Closing Date, set the last day of the period you want to lock. Enter the password and re-enter it to confirm.
- Click OK.