QuickBooks Help

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					        Tracy Bressler, CPA
                                                                                                            February, 2009




     QuickBooks® Help
                                   I S M Y Q U I C K B O O K S C O M PA N Y F I L E T O O B I G ?
    IN THIS ISSUE                                            What If QuickBooks Runs Too Slow?
  QuickBooks File Size                    Not all accounting software packages
                               are created the same. Many are designed to
                               ‘close’ periods after a certain amount of time. For
     Your questions            instance, one package will only have two year’s
                               of information available at any one time. So, a
                               user of this program, once reaching the end of
    Opening Balances           their second year, would have to ‘close’ the first
                               year. Closing would mean that the closed year
                               would contain summary information for reporting
                               purposes, but would not contain any detail. If you
                               wanted to look up an invoice from this period, you
                               would need to have a copy saved somewhere.
                               Theoretically, you could have an archived backup
                               copy for each year saved somewhere that could
                               be restored when needed. More often, paper
                               copies of detail documents are saved and filed in
                               case they are needed in the future. This is a
                               distinct disadvantage to this approach.
                                          QuickBooks actually pioneered the idea      have ever seen was a little over 600 MB. It worked,
                               that periods would never close. Detail would           but was ridiculously slow. If your company file is
                               always be available.        No archived copies or      near or over the mentioned size limitations, it’s time
                               paper documents need be kept. They are always          to think about a new QuickBooks company file.
                               in the QuickBooks company file.                 The               There isn’t a lot of difference between
                               disadvantage to this method is that the company        setting up a new QuickBooks file for the first time or
                               file becomes larger faster and at some point,          to replace one that is getting too large. Usually the
                               usually needs to be started again.                     biggest concern is, “Do I have to re-enter all my
                                          So, when is the company file too big?       customers and vendors?” Fortunately, QuickBooks
                               In older versions of QuickBooks (2005 and older)       has provided help for that process. Once you have
                               the practical limit was about 100 MB. In 2006,         created the new QuickBooks company file, return to
                               the file structure changed and 200 MB is now           the old one and go to File->Utilities->Export lists to
                               considered to be the practical limit. These            IIF files. This opens a small window that lets you
                               numbers are not absolute, your system will not         select any or all of the many lists that QuickBooks
Tracy Bressler, CPA            stop when these file sizes are reached. But the        maintains. After making selections click OK and
                               program will work slower and the risk of data          QuickBooks will ask you to name the export file and
  770 East Bush Street
                               corruption increases.                                  designate where to save it. I usually use the
   Lemoore, CA 93245                      To find the size of your company file,      Desktop as a temporary place to save.
                               press Ctrl-1 from within QuickBooks. A window                     Now, open the new QuickBooks company
   559-924-1225                like the one shown in the graphic will appear.         file and select File->Utilities->Import->IIF Files.
www.tracycpa.com               Size limitations make the graphic here a little        This will open a window asking what file to import.
                               difficult to read, but about the middle of the         Navigate to the Desktop, select the file just created,
                               window along the left margin is an entry that          and QuickBooks will import any lists you selected
                               reads ‘File Size’. Read across the line and it will    into your new company file.
 QuickBooks® is a registered   tell you in kilobytes how large the company file is.             It is still work to start a new company file,
   trademark of Intuit, Inc.   Divide by 1024 to translate this number into           but if your existing one is too big and slow, it will be
                               megabytes (MB).                                        worth the effort. Now (the beginning of the year), is
                                            The largest QuickBooks company file I     the best time to do it.
  T racy B ressle r, C PA

  770 East Bush Street
     P.O. Box 628

   Lemoore, CA 93245



     559.924.1225




 WE ’RE ON THE
          WEB!

W W W. T R A C Y C P A . C O M
                                       Got a question about QuickBooks? Email the question to
                                  lance@tracycpa.com. You may find an answer in our next newsletter!
                                 A reader asked— “What can I do to make sure my QuickBooks file is correct?”
     What is a
QuickBooks Certified             Answer— This question I wish QuickBooks users would ask. I worked with a QuickBooks user whose
                                 items were setup incorrectly, which resulted in his net income being under-reported on Profit & Loss
    Pro Advisor?
                                 statements by over $25,000 per year for several years. He could not have made business decisions
                                 from his financial statements since those reports had no connection with reality. It meant he paid a lot
A Pro Advisor is someone
that has registered with the     less in income taxes and most of us would like that. If he is ever audited however …
                                            I worked with another QuickBooks user with the same problem, item setup. In his case
Intuit company to be able to
assist users of QuickBooks       however, income was over-reported. It was a sizeable company so I’ll just say the Profit & Loss
                                 statement showed income of about 150% of what it actually was. He more than made up for the
software.        To become
certified    on the different    income taxes not paid by the first guy.
                                            Usually it takes a professional to find these problems. I know that sounds self-serving, but
software packages that
Intuit offers, one must take     it’s not that expensive and would you expect a car mechanic to re-assure you that anyone could fix
                                 their own car?
a certain amount of training
and then pass an exam
certifying that they are                       Setting Up Beginning Balances in a New QuickBooks Company File
knowledgeable enough to
offer assistance to users. If             So let’s say you are going to create a new QuickBooks company file. Many beginning
you can pass the exam,           balances are easy to enter. For instance, the balance in the fixed asset account Vehicles can be
Intuit      has     enough       entered in the register or by journal entry. Some, though, require a little more effort.
confidence in you to make                  The bank balance should be created by entering the balance from the bank statement as of
you part of their program.       the end of the previous period. Then, outstanding checks and deposits can be entered with their
                                 original dates and coded to the account Opening Balance Equity.
We are Certified Pro
Advisors for QuickBooks                   Accounts Receivable and Accounts Payable need similar treatment. Transactions using the
2008, 2007, 2006, 2005,          name of the customer or the vendor as of the original date should be entered. Usually, we code
2004, 2003, 2002, 2001,          these transactions to Opening Balance Equity for accrual basis accounting, the original income and
                                 expense accounts for cash basis. Check with us or your accountant if you need help with this.
2000, and 1999. You can
find us listed as such on the              If you use the inventory feature in QuickBooks, inventory must be entered on a per item
                                 basis. That is, you must use the Adjust Quantity/Value on Hand transaction in QuickBooks and enter
QuickBooks web site
                                 the quantity and value of each inventory item. Journal entries to the inventory account can be
(quickbooks.com). Just look      ‘deadly’ to the QuickBooks file when inventory is being tracked.
in the resources section and
                                          This is a process with which most users will need some help. But, once completed
click on Find a Professional
                                 accurately and correctly, you should have a new QuickBooks company file good for several years.
Advisor!