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  #1  
Old 04-13-2012, 12:33 PM
Lenapie Lenapie is offline
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Exclamation books are a mess is it ok to start over entering 2012

I'm taking over the books at a nonprofit, rhe previous bookkeeper has miscategorized most of the records. she has 17 misc accts that include parking, professinal fees, advertising etc. Also he never reconciled or did end of year closing procedures.

I can't give the board members a clear picture of what's going on. is it ok to start a new company entering only 2012? What is the most time efficient solution?

Also they are not using quickbooks premier, and they are a nonprofit. if i so start over would it be better to switch from pro to premier?
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  #2  
Old 04-14-2012, 08:30 PM
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LauraD LauraD is offline
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Pro should be fine.

Yes, it is fine to start 2012 with a fresh file.

I will follow up with my procedures for starting a new file with historic data.

I hope this helps,

Laura D
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  #3  
Old 04-14-2012, 08:32 PM
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LauraD LauraD is offline
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This is what I do when I am starting a new file with existing data:

If you have an accurate trial balance from a previous month/year, enter it as one journal entry. (Do not enter any opening balances when setting up new accounts in the COA.)

For the Checking account(s), enter only the reconciled bank statement amount in that journal entry, but do not enter any a/r or a/p amounts. Do not enter inventory asset amount, if they are tracking inventory items in QuickBooks.

Let the variance of this journal entry hit Opening Balance Equity.

Then, enter any outstanding checks/deposits and hit OBE. (use the write checks/make deposits windows)

Then, enter Unpaid Bills and Open Invoices, one at a time, with the vendor/customer name and original date and ref# . . offsetting OBE. (use the enter bills/create invoices windows - you will have to set up an item which points to OBE for the invoices)

For inventory - if they are tracking inventory type items in QuickBooks, you need to enter the items with beginning qty/value, or enter all items with no qty/value and, then, do an inventory adjustment to account for the actual inventory, using Opening Balance Equity as the adjustment account. (I prefer the second option>)

When you complete these steps, your OBE should be zero.

This will give you the detail of outstanding checks/deposits so that you can reconcile next month's bank statement.

This, also, will give you an accurate A/P, A/R, and Inventory count/value with enough detail to move forward in paying bills and receiving payments.

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Does this help?
Laura D
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  #4  
Old 04-19-2012, 09:24 AM
KristiR KristiR is offline
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Hi Laura,
I'm in a similar situation - just started working at this company and the previous person handling the accounting just used the checkbook register portion. (Invoices were issued manually and the pay bills/receive payments functions were never used.) I have a simple company (very few bills/invoices) and a more complicated company to handle. Both only had the checkbook register used. Would you recommend starting over in this situation?

If so, I have a few questions about your method for starting over. Since the invoicing and billing functions weren't used, I don't know if I have an accurate trial balance. (Or do I?) The trial balance report has the checking account and members draw on the debit side and the members equity on the credit side. The checkbook register in Quickbooks matches with the balance of the checking account 1/1/12. There's one outstanding invoice that I found from 2011 and no outstanding bills.

If I use your method for starting over, how do I start?
Do I enter the three items from the trial report as a general journal entry? Or I create a general journal entry and credit the checking account with the balance as of 1/1/12 and debit the OBE for the same amount? What should I do with the one outstanding invoice?

Also, one company (which is making $$) - I'll call it company A - often makes payments for the other company (company B). The expectation is that company B will pay back company A once it starts making money. How do I account for these transactions appropriately? Do I invoice company B or is there a different way to account for the loan?

Thanks!
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  #5  
Old 05-03-2012, 11:55 AM
Mr Gadgets Mr Gadgets is offline
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Laura,
I am in the same situation. I have run my company from QB since 2004 and things are a mess. I have purchased Pro 2012 and need to install it soon, my 2009 will be outdated soon. I am trying to read and understand post #3 above, but I am having trouble with the terms and acronyms.. Any help would be appreciated. Who can I go to, to look at what I have and how I can clean it up and start fresh? Or maybe I dont need to. I have not reconciled, because it doesnt seem to come out right and then I don't know what to do. I am not an accountant, probably the problem??

Thanks!
Dick
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  #6  
Old 05-03-2012, 03:06 PM
AdamAccountant AdamAccountant is offline
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Mr Gadgets, I would be glad to help you get on the right direction. Do you have skype?
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