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when you file your taxes you tell the government about your income cost of goods sold and expenses over the course of a year if the IRS decides to audit your company its crucial that whats in quickbooks matches what you gave to the government so basically we never want these transactions once theyre reported to the government to change closing dates are a way for you to ensure that change never happens to those transactions in our case we want to protect all of the data that took place in 2017 so to set a closing date and protect those transactions we open the gear icon and then choose account and settings closing date settings are found under the advanced area in the accounting section right here lets close the books and then enter 12 31 2017 we set this as the closing date because this way every transaction that occurs on this date and before will be protected right now if we try to change a transaction that happens on or before this date will receive a warning but we can go thr