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 firstname.lastname@example.org. 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!