As mentioned in prior blog articles, January 1 is a very common time of year for companies to start a fresh QuickBooks company file. Before you begin this process you will need to decide how much and what data that you need to have in the new QuickBooks company file. Thanks to MB Raimondi CPA and Todd Robinson of Intuit for a series of emails on converting Creative Solutions clients to QuickBooks using Transaction Pro Importer that was the genesis of this article. These questions/points below should be considered when moving from another accounting software to QuickBooks or for existing QuickBooks users that are looking to start a brand new company file.
Question 1: Will I have access to the prior data either within the old company file/accounting software or in printed format?
- Then consider how often you will need to access this historical data and how quickly you need to have access. This will help you determine how much data that you need in the new company file and if you need this data in detail or summary format.
- Also consider if you will need to have the ability to easily export data to Microsoft Excel.
Question 2: Is this a cash based business or is this company tracking accounts receivable (A/R) and accounts payable (A/P)?
- If the company is tracking A/R and/or A/P at a minimum you need to bring over the opening balances as of January 1. Read some tips on how to do this here.
- If this is a purely cash based business you might want to bring in month end activity for every month as a journal entry.
Question 3: What does this company have for reporting requirements?
- Do you need to provide comparative financials to outside parties?
- Do you need to provide details customer or vendor records over a specified period of time?
Question 4: If coming from another accounting software does this company make use of any other applications that need to interface with QuickBooks?
- Consider if there is a suitable App that works directly with QuickBooks?
- If the company decides to stay with the existing other application then see if they can provide the data in Excel, CSV or text files and then you can import this data to QuickBooks using Transaction Pro Importer.
Question 5: Should we take this time to clean up inconsistencies of improper use of list items?
- Should this company start using class or location tracking?
- Should this companies chart of accounts be more streamlined?
- Should item types be changed (eg from inventory to non inventory)?
This is just that start of many things that companies should consider when starting a new set of accounting records as of January 1. If your company does not have the band-with or resources to accomplish this task you could reach out to our Partner Network, to assist you with this process.