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

QuickBooks enables you to create a new company file each year; thus, eliminating the data entry required during the initial file setup. Creating a new company file provides an extra measure of security against accidental changes to data for a previous tax-reporting period. It can also be used to clean up or restructure your current data by removing unused items, names, and accounts.

Please be aware of the following 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, either.
  • 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.

Prior to starting a new company file, print the following reports, dated December 31st of the closing year:

Note: You will need these reports to recreate the Accounts Receivable (A/R) and Accounts Payable (A/P) year-end balances in the new company file, as well as the opening balances for all balance sheet accounts. You will also need to manually enter inventory Quantities on Hand and value, Asset Values, stock status, outstanding Sales Tax Liabilities, open Sales Orders, open Purchase Orders, and any outstanding banking transactions.

Detailed information

To create a new company file for a new year, perform the Clean Up Company Data or Archive & Condense Data procedure:

 

Your new company file retains your lists, preferences, 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.

 

If this information does not answer your question, you can read discussions and post messages and questions relating to your issue on the Intuit QuickBooks Community site for free. You can contact an agent for additional guidance. Fees may apply.

 

KB ID# INF12329
7/29/2014 3:43:10 AM
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