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Join nowHi. The company I am working with had a prior entity (LLC) and they have moved to an S-Corp as of 1/19. Their prior bookkeeper did not open a new set of books with the new entity. The issue I'm having is, there are old liabilities and equity accounts related to the old entity that we need to be zeroed to have an accurate reflection on the balance sheet for the corp. There should only be two current assets:
Initial stock purchase of $1000
Loan to third party
There should not be any existing liabilities.
I have tried making adjustments but no matter how I slice it, either the liability side or the asset side are unbalanced. Any ideas on how to "restart" these accounts in the chart of accounts?
You can't, nor should you.
Start a new subscription for the s-corp as should have been done and enter opening balances
the old company needs to have its books closed, all liabilities paid, receivables too. Then the company files a final income tax form.
Thank you for your reply. Does this mean my client will need to maintain two separate QBO subscriptions?
Hi there, Kath4. If your client needs to make any changes to their old books in QBO, they will need to maintain that subscription. However, if the books are closed and needed only for reference purposes, they can cancel the subscription and QBO will maintain read-only access to the data for up to 1 year, during which time you can download or export the data.
See this article for more information on how long QBO maintains your data after a subscription has ended:
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