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					                                                                                                                                                                    QuickBooks Tip
                                                                                                                     QuickBooks: Starting the Year with a New Company File
P.O. Box 231 Watertown, CT 06795 ◦ Phone (203) 525-7586 ◦ Fax (320) 386-3887 ◦ www.melvinsystems.com




                                                                                                       Title             Starting the year with a new company file
                                                                                                       KB ID#:           117500
                                                                                                       Categories:       Customize

                                                                                                       Question:         How do I start the year with a new company file?

                                                                                                       Answer:           QuickBooks now enables you to create a new company file each year, eliminating the
                                                                                                                         data entry required during the initial file setup. Although closing a company file at
                                                                                                                         year-end is not required, many users find that the volume of transactions over the
                                                                                                                         course of a year results in increasingly larger data files and deteriorating computer
                                                                                                                         performance.

                                                                                                                         Creating a new company file helps alleviate these symptoms while providing 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.

                                                                                                                             •    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.

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

                                                                                                                             1. Customer balance detail report (choose Customers & Receivables, and
                                                                                                                                then Customer Balance Detail from the QuickBooks Reports menu).

                                                                                                                             2. Vendor balance detail report (choose Vendors & Payables, and then Vendor
                                                                                                                                Balance Detail from the Reports menu).

                                                                                                                             3. Standard balance sheet (choose Company & Financial, and then Balance
                                                                                                       Created By: Frank Melvin IV                     Page 1 of 3                 Revised By: Frank Melvin IV
                                                                                                       Date Created: 2/22/2007 4:45:00 PM                                   Date Revised: 2/22/2007 4:48:00 PM
                                                                                                       Filename: QB_Annual_File.doc
                                                                                                       Source: http://www.quickbooks.com/support/faqs/qbw2003/117500.html
                                                             QuickBooks Tip
              QuickBooks: Starting the Year with a New Company File
                     Sheet Standard from the Reports menu).

                  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
                  value, stock status, and any outstanding banking transactions.

                  To create a new company file:

                      1. Make sure that you have printed copies of the three reports mentioned above.

                      2. From the QuickBooks File menu, choose Archive & Condense Data.

                        Click Yes, if prompted with the message "Budget data may be removed during
                  condense. Do you want to continue anyway?"

                      4. Select Remove ALL Transactions in the Choose a Condense Option
                         window, and then click Next.

                      5. Click Yes to the warning message.

                      6. A Proceed with Condense? window, which contains a list of actions
                         QuickBooks will perform on the file, will display. Click Begin Condense to
                         proceed.

                      7. For your protection, 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 needed, you can easily restore your
                         original company file from either the backup or archive copy.
                      8. After backing up, follow the steps in the Archive & Condense Data window
                         to completion.

                  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 choosing Make Journal Entry 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.

Created By: Frank Melvin IV                     Page 2 of 3                 Revised By: Frank Melvin IV
Date Created: 2/22/2007 4:45:00 PM                                   Date Revised: 2/22/2007 4:48:00 PM
Filename: QB_Annual_File.doc
Source: http://www.quickbooks.com/support/faqs/qbw2003/117500.html
                                                             QuickBooks Tip
              QuickBooks: Starting the Year with a New Company File


Last              06/02/2004                                                   Created:            12/12/2001
Modified:




Created By: Frank Melvin IV                     Page 3 of 3                 Revised By: Frank Melvin IV
Date Created: 2/22/2007 4:45:00 PM                                   Date Revised: 2/22/2007 4:48:00 PM
Filename: QB_Annual_File.doc
Source: http://www.quickbooks.com/support/faqs/qbw2003/117500.html

				
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