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This is a frequently discussed topic, and there are a lot of solutions people do. The simplest solution is to add a yes/no column and set it to yes when finished. Another is to use the rating column and set that when finished. If you want the date read, then add a date column and set that it when finished.
Personally, I use a few things:
Firstly, I use "percent read" and "date last read" columns. These are automatically retrieved from my Kobo devices when I plug them in. Unread means those columns have nothing and 100% means it is finished.
I also use the Reading List plugin. That has a list for "To Read", "Reading" and "Read". Adding a book to one of these updates a column with the matching status. Removing the book from the list, removes the status. I have other lists and statuses for other things. The status column is used to create collections on my Kobo devices.
I also update the status on Goodreads. This is automatically done (using the Goodreads Sync plugin) when the status is fetched from my devices.
Lastly, I have some column icon rules that set an icon in the percent read column based on the state. A tick means it has been read, an open book for reading, a star if the book is finished but doesn't have a rating and some other things.
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