It means they can’t edit anything before the closing date unless they use the password.
Resolution for 'clients file issue: 'what happens to my client’s file when i set up a closing date and password?' available: Yes.
The clients file issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the clients file issue yourself by looking for a resolution described in the article. If it is a complex clients file issue or you are unable to solve the issue, you may contact us by clicking here or by using other clients file support options.
For more information about resolving issues related to clients file in Quickbooks/QBO or to get support for the issue 'what happens to my client’s file when i set up a closing date and password?', click the link below: