How Clean Up Accounts Receivables in QBOnline from prior years

Hello, @worldtrav9. I appreciate all your efforts in doing all the things to make your book accurate and you're close to it. I'm here to help you clean up the Account receivables from the prior years.

We can create Journal Entry (JE) and then reverse it to clear any accounts receivable in QuickBooks Online. You'll just have to enter a date of the end of the time period and set it to reverse on the following day. But before you proceed, I would highly suggest consulting with your accountant. This way, we can ensure that you enter the transactions accurately and avoid data messing up with your accounts.

Here's how:
 

1. Click on + New, then under the Other column select Journal entry.
2. Type in the Journal Date.
3. Below the Account drop-down, choose the account affected by the transactions, then enter the amount in the Debit column.
4. Add the Accounts Receivable on the next line.
5. Select the customer's name in the drop-down.
6. You can enter a note in the Memo field.
7. Then select Save and close to record the transaction.
    

After that, you're now ready to reverse it, here's how:
 

1. Click the Search icon on the toolbar.
2. Locate and open the journal entry you created.
3. Elect Reverse.
4. Change the Journal Date to one day after the original journal entry's Journal Date.
5. Then click Save and Close.
    

For detailed information, please check out this article: Resolve accounts receivable or accounts payable balances on a cash basis balance sheet in QuickBooks....

I've also added this article to understand that some of the default or special accounts can’t be modified: Manage default and special accounts in your QuickBooks Online chart of accounts.

You got me always if you have any other concerns or clarification in managing your account receivable in QuickBooks Online. Stay safe!

Hello - thank you for your quick reply.  I have another question regarding this subject:  There are a number of invoices that were created over the years -- and --- the money was received and deposited into the bank account -- however -- it was a deposit transaction on its own -- it was not connected to the invoice.  So, the invoice is laying out there.  Can't I delete these types of invoices?  Thanks for your guidance.  It is greatly appreciated.

Yes, you can delete the transactions that are not connected to the invoice, worldtrav9.  

Let's me share some information what will happen when you delete an invoice. 

When you delete an invoice, you will remove it completely. The invoice will no longer show up in any accounts or reports. Delete an invoice only when you do not require any record of the invoice.

You can use the Batch action function to delete multiple invoices. Here's how:

1. Go to the Sales menu, then select the Invoices tab.
2. Check the invoices you want to delete (or check the box column to select all of them). 
3. Click the Batch actions button.
4. Select Delete.

However, I recommend seeking assistance with your accountant. They'll be able to guide you when deleting your transactions and ensuring the accuracy of your accounts. 

Need to take care of other transactions by voiding or deleting them? This article can help you out with the details: Void or delete transactions in QuickBooks Online.

Know that our door is open 24/7 if you have any additional QuickBooks-related concerns. You can also click the REPLY button below if you need further assistance in QuickBooks Online. Rest assured, Our dedicated experts are always around to help you. Take care, and enjoy your day!

Hi, I am the owner 3million+ - annual income  compony, which has only one kind of  income which is the monthly rent. We have 100 or so  rents come in every month

This rent comes from two or in  some cases three sources . Rental agreement changes once a year according to inflation. My Quickbooks online was set up 20 years ego by people who did not know much Quickbooks. I also had my most recent book keeper not do a good job of  going after the  unpaid invoices. Another problem was that when a renter moved out his invoices were not terminated. I have a good information about  move in and move out dates. I am looking for a way to cleanup the erroneous invoices by going, renter by renter, and documenting the open invoices and stoping the invoices at the date of reenter moving out. I watch couple of videos and feel like I can correct all neglected work, but I was also thinking it might be a good idea to have a experience bookkeeper to do it,  just to eliminate the doubth . I look forward to your advice. thanks in advance, Mustafa

Hi there, Mustafa. We appreciate you reaching out to us.

Based on what you've shared, it would be a good idea to have an experienced bookkeeper review your QuickBooks Online account and help you clean up any erroneous invoices. This can help ensure that your financial records are accurate and up-to-date.

In the meantime, you can start by reviewing your rental agreements and identifying any changes that need to be made to reflect inflation. You can also review your move-in and move-out dates to ensure that invoices are terminated when renters move out. This can help prevent any future errors in your financial records.

Then, you can follow these steps to stop recurring invoices:

1. Go to the Gear icon in the top right corner of the screen and select Recurring Transactions.
2. Find the recurring invoice you want to stop.
3. Select Delete or Pause from the Action column. 
   
4. Select Yes to confirm you want to delete the template.

After that, you can delete those invoices that were not terminated when the renter moved out.

Finally, if you know you won't be paid back for a transaction, you must write it off as a bad debt.

Keep me posted if you have any further questions or concerns about managing invoices. I'd be delighted to help.