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How to start over in QB but save old data

Sarah   G's Profile

I've recently taken a new position as a bookkeeper at an organization that has not maintained quickbooks over the years. Checks were recorded and printed using QB, and some deposits were recorded, but the records are far from complete. I spent some time trying to straighten out the Quickbooks records, but we have agreed that is not a good use of my time. We would like to start over in QB as of the beginning of the fiscal year (a few months ago) but not delete all the old information. Is there a way to: 1) Set up a new company (I assume that's what I would have to do) 2) Import data from July 1, 2014 forward from the old company to the new company 3) Preserve the the semi-complete records from 2011 forward that are currently in QB? Hopefully this question makes sense. Sarah

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Not sure about the state of the numbers/books and the size of the company....

One option is to just do a series of adjusting entries to get the accounts in order. Of course you will have to maintain some documentation/support on the entries. Maybe even maintaining SL and GL account differences for some time until you get the time to iron/audit things out.

Most importantly (if you are going to take this route), you have to have a snapshot (maybe even printing out the SLs/GLs/lists) of the current books just to have a point of reference or audit trail.

One headache I see is the AR (GL and SL). If deposit recording is in disarray, as you say, application to AR and coming up with the real AR number will be a nightmare. I would recommend an in depth audit of the cash accounts.

Here is what I know....if you import data (which you imply is incomplete), the new QB system will also be incomplete. As they say, garbage in, garbage out!

Sarah G
Title: bookkeeper
Company: TCS
(bookkeeper, TCS) |

Thanks Emerson. I think importing data is the way we will go. Is there a way to import data only from the last few months? The last nine months or so should be accurate. I'd like to start over with just the last 4 or 6, which would be accurate. Is there a way to do a partial import? Could I do that to a separate 'company' in quickbooks and keep the old records?

Thanks for the tip on taking lots of snap shots, I hadn't thought of that.

Sarah

Stephen Morrison
Title: VP Finance/Administration
Company: In-Between
(VP Finance/Administration, In-Between) |

The QB best practice would be to set up a new company and follow the new company procedure as of the new opening balance sheet date. You would have to set up all the subsidiary ledgers using the transactions that comprise the balance sheet with the detail AR and AP transactions. Create other balance sheet items balances when the chart of accounts is set up with their opening balances. The offset is an account for opening balance sheet equity. This account is a default account when setting up a new company. When you have the balance sheet at the closing date such as December 31 and the subsidiary detail set up create create a single entry to close out the opening balance sheet equity to retained earning or the proper capital account and use the proper transactions going forward. If you need additional assistance. Contact me. I am an Advanced Certified QB ProAdvisor.

Jaime Campbell
Title: Chief Financial Officer
Company: Tier One Services, LLC
(Chief Financial Officer, Tier One Services, LLC) |

Sarah,

With respect to my colleagues above, there is a potential shortcut that has gone unmentioned. Check out the "Period Copy" feature and see if it works for you. It's worth a half hour of your time to give it a go. If it works, it could be a tremendous shortcut.

Jaime

Jaime Campbell
Title: Chief Financial Officer
Company: Tier One Services, LLC
(Chief Financial Officer, Tier One Services, LLC) |

P.S. Get to the bottom of why the records were overlooked in the first place. If they don't see any value in maintaining the records (compliance, business intelligence) then they may be the type of client that quibbles over your fees and such.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Whatever route you take, it will still be "tripped" by opening balance differences between SL and GL. The in depth audit of cash accounts is inevitable. Even if you say the last 4-6 months of transactions is accurate, the balance forwarded and the balances of accounts (and it's subsidiaries) affected by it will still be inaccurate. You will have a seemingly clean Balance Sheet numbers that you canNOT support.

The last time I encountered this type of mess, I set up a "prior period adjustment" (or whatever you want to call it) account on the equity portion to isolate it and the adjustments I make.

As I said before, garbage in, garbage out.

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