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Start a new company file: use the Condense Utility to delete all transactions

QuickBooks allows you to start a new company file from an existing file by using Condense Utility to delete all transactions.

Advantages:

  • Eliminates data entry required during the initial file setup.
  • Provides an extra measure of security against accidental changes to data for a previous tax-reporting period.
  • Enables clean up or restructuring of your current data by removing unused items, names, and accounts.
  • Allows you to control the size of your data file.
  • Enhances the performance of your data file.
 

Limitations:

  • Due to critical payroll information contained within payroll files, this feature is not available to payroll users. Time entries (like time sheets and individual time activities) will not be removed from a data file by condensing/cleaning up data.
  • Due to security and time-related data from the financial institution, this feature is not available to QuickBooks Online Banking users.
  • You will not be able to run comparative annual reports if you choose to create a new company file for every new year.
Prepare to create a new company file

Before starting a new file, you need to create reports to help you set up opening balances, inventory Quantities on Hand and value in the new company file. Also, you need to manually enter Asset Values, stock status and outstanding Sales Tax Liabilities. Save as PDF or print the following reports dated on the last day of the closing fiscal year:

Create your new company file through the Condense Utility

To create the new company file, you need to run the Condense Data Utility.

  1. From the File menu, select Utilities and click Condense Data.
  2. Select All transactions and click Next.
  3. On the Condense Company Data prompt, click Yes.
  4. Click Begin Condense.
  5. When complete, setup your opening balances.
 
NOTES:
  • As a precaution, QuickBooks will prompt you to back up your original company file. In addition, QuickBooks automatically creates an archived copy of your original file in the QuickBooks directory and names it "Archive Copy MM/DD/YY [your company file name]." If need information from your previous company, you can open the archive copy or you can restore from the backup.
  • Your new company file retains your lists, preferences, templates and service subscriptions, but no transactions.
  • You may begin entering opening balances for Balance Sheet accounts by selecting Make General Journal Entries from the QuickBooks Company menu.
  • To rebuild the outstanding balances in accounts receivable, you can either create balance forward invoices for a lump sum customer balance, or you can recreate individual invoices.
  • The Enter Bills option in the Vendors menu enables you to recreate vendor balances, charging these bills directly to the Uncategorized Expense account, as opposed to individual expense accounts.
KB ID# HOW21125
12/7/2016 6:04:45 PM
QYPPRDQBKSWS01 9138 Pro 2017 2a0f1a