Creating a QuickBooks company file is an important step for businesses whose aim is to streamline their financial operations. QuickBooks, developed by Intuit, is outstanding software that allows businesses to manage their income and expenses and gain insights into their financial data. Whether you are a small business owner, a seasoned entrepreneur, or running a large-scale enterprise, it’s crucial to have an updated and properly functioning QuickBooks company file.
The QuickBooks company files store all the important financial data of a business, including invoices, transactions, vendor details, and inventory records. This file has an extension as .qbw, and the file name is the same as the company name. It acts as a digital ledger that consolidates all the financial information in one place, which makes it easier for businesses to track their income and expenses accurately.
However, creating the QuickBooks Desktop company file is neither a difficult task nor a single-time activity. It requires regular maintenance and updates, which ensures its efficiency. In today’s blog, we will walk you through the complete process of how one can create and maintain a QB company file. So, make sure to read the blog till the end to understand the step-by-step instructions for effectively creating a new QuickBooks company file.
How to Create a New Company File From the Beginning?
If you have to create a new company file from scratch while the old one is still saved on your computer, then make sure to provide a new name to the company file. This will avoid any confusion or overlapping with the old file. Let’s take a look at the actions that you can follow to create a new company file on your workstation:
- First of all, navigate to the QuickBooks desktop software on your PC.
- Thereon, go to the No Company Open Window and then click on the Create a New Company option.
- Now, to move ahead with the procedure, you have two options.
Option A). Express Start
- Click on the Express Start option and then provide the business name, industry, and business type for creating the company file.
- After that, click on the Help Me Choose option. This will show you the description of every business type, along with the Chart of Accounts that QuickBooks will create for you as per the industry.
- Thereon, click on the Create Company option.
- At last, choose the Start Working option. Here, if required, you can also start creating the chart of accounts, customers, and services, or you can also do it later.
Option B). Detailed Start
This method is recommended only if you want to go for a complete setup process. Here are the steps that you can follow to do so:
- Under the Create a New Company Window, click on the Detailed Start option.
- After that, complete all the easy steps in the interview window and choose the Next option.
- Choose the Industry Type and again select the Next option.
- Thereon, search there for the type of business entity, and again click on the Next option.
- Choose the fiscal year for which you want to create a company file.
- If needed, you can also setup the QuickBooks admin login password and then choose Next.
- Choose the QuickBooks company file location where you want to save the file and click on the Save option.
- If you want to customize QuickBooks, then click on the Next option. You can also do it later by clicking on the Leave option.
- Make sure to complete the setup process by following the on-screen instructions.
By performing the above steps, you have successfully created a new QuickBooks company file from the beginning.
Starting a New Company File in QuickBooks Desktop
QuickBooks allows its users to create a new company file at the end of the financial year. This ensures that no data from the previous financial year is carried over to the new file. Even though closing a company file at the end of each year is not compulsory, some users still prefer to start fresh with a new file. This helps in maintaining a new company file that is systematically organized and accurate.
Actions to Be Taken Before Starting a New Company File
Before starting a new company file, you will need to manually provide the necessary details. This step will help in properly reconciling the statements and creating a clean slate for the new financial year.
- Standard Balance Sheets: Navigate to the Reports menu and choose the Company and Financials option. Select the Balance Sheet Standard option.
- Customer Balance Detail Report: Move to the Customers and Receivables in the Reports menu and select the Customer Balance Detail Report option.
- Vendor Balance Detail Report: Move to the Vendors and Payables in the Reports menu and then select the Vendor Balance Details option.
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How to Create a New Company File in QuickBooks Pro & Premier?
In QuickBooks Pro and Premier, creating a new company file is a straightforward process. It requires the user to execute a few simple steps. Below listed are the actions that you can undertake to get the process done:
- Navigate to the File menu on your QuickBooks desktop.
- Thereon, choose the Utilities option, and then click the Condense Data option.
- Now, in order to rebuild the outstanding balances, you can either do it by preparing the individual invoices or create balances by forwarding an invoice for a particular huge customer balance.
- Under the particular vendor menu, Create all vendor balances together with the Enter Bills option.
- Moving ahead, the bills will be directly charged to the uncategorized expense account.
- Here, you must note that payroll users cannot avail of this feature because its critical payroll information is available under the payroll files.
- Once you are done with the above steps, then click on the File menu option and choose New Company.
- Subsequently, as the easy-step interview window appears, choose the Start Interview option.
- Also, implement the on-screen instructions and the details for the new company file.
How to Create a Company File From Existing Ones in QuickBooks Desktop?
Each year, there is no need to create a new company file from scratch. Instead, you can simply create a copy of the existing company file and use it as a template for the new year. This will allow you to keep your financial records consistent and accurate, which can be easily compared with other years’ performance.
Here are the steps that you can execute step-by-step to create a company file from existing ones on the QB desktop:
Part A). Create a Copy From the Existing Company File
- First of all, launch the QuickBooks desktop software on your workstation, and then access the company file that you want to copy.
- Open the Product Information window on your PC by pressing the F2 key.
- After that, search here for the company file location and create a backup of the company file.
- Now, use the newly created backup file to restore the company file.
- Make sure to rename the file while you are trying to restore it. This will create a unique copy of your company’s file.
- At last, save this file in a different folder.
Part B). Delete Transactions from the Copied Company File
As you restore the backup file, it will automatically create a new company file with the same accounts, lists, templates, and preferences. After that, delete the copied transactions to start with a new one.
- Open your QuickBooks company file and open it.
- Thereon, move to the File menu and choose the Utilities option.
- After that, choose the Condense Data option, and if you are prompted to remove the budget data, then click on the Yes option.
- Choose All Transactions and move to the Next option in the Condense Data window.
- Now, keep following the on-screen instructions to remove the copied transactions.
Part C). Verify Your Accounts
Once you have deleted the transactions, the next step is to verify that all your accounts are empty by checking a transaction list by date report.
- Go to the Reports menu, and then click on the Reports Center option.
- After that, open the Transaction List by Data Report and find the Accounts & Taxes section.
- Thereon, make sure to rectify the report’s date range, and it will show you the oldest transaction in the file you copied.
At this stage, the file should not contain any transactions. If you find any transactions, then remove or edit them immediately.
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In conclusion, creating a QuickBooks company file is a simple and straightforward process that involves setting up a new company file, providing relevant information, and customizing settings. By following the steps mentioned above, you can easily create a new company file. However, if you are facing any issues creating a QuickBooks company file, then we advise you to get in touch with the QuickBooks support team. Experts are available 24/7 to answer your queries and help you resolve any issues you may encounter during the process.