Business sold

It's good to see you here in the Community, @Spunky.

Allow me to provide some information about closing out books in QuickBooks Desktop.

You don't have to create a new company file since you'll be using the same data as the previous owner of the business. You'll just need to close the financial records so you can continue using the program. Here's how:

1. Open the QuickBooks Desktop company file.
2. Go to the Edit menu, then select Preferences.
3. Click Accounting from the left menu and go to the Company Preferences tab.
4. Select Set Date/Password.
5. In the Set Closing Date and Password window, enter the closing date (February 28).
6. Enter the closing date password, then confirmed it.
7. Click OK.

I'm adding this article for more guidance: Close your books in QuickBooks Desktop.

On the other hand, I suggest requesting a license transfer for the ownership of the QuickBooks software. To do so, I recommend contacting our QuickBooks Support Team. 

Just in case you want to change the closing date and password, you can check out this article for the detailed steps and information: Set or change a closing date and closing date password.

Fill me in if you have other concerns or follow-up questions about this. The Community team and I are always here to help.

@Spunky 

Was this a stock sale or an asset sale?  In both cases, new owners generally keep the same name.  The difference lies in what the buyers bought.  If they bought the assets, then you should maintain ownership of your QB file because they are forming a new entity (with a new EIN) and essentially starting a new business with the same name, vendors, and customers.  You can export your vendors and customers and they can import them into their new company file.  Then, you maintain ownership of your company file and close out Feb. as usual.  If this was a corporation and they bought the stock, then they take over everything and you walk away and the QB file stays with them.       

Thank you for the response.  One concern I have (I was brought in when the business changed hands), the new owners continued on with invoicing and expensing all through March without having the previous owners books closed at February 28th.  If I close the previous owners books at February 28th, will all information that has been input into the system for all of march still be there or will it need to be reinputted.

@Spunky 

Closing the books (setting a password) has no effect on data entered after the closing date.  The more likely issue is the new owners making entries and dating them in February.  Those would be difficult to find unless you have a backup dated Feb. 28 or an income statement and balance sheet from the day of closing.

Building off what you have already answered, what if we have customer orders and vendor payments that will transfer to the new owner?  How can we just share the books back through, let's say Jan2024 but not let them see anything farther back?  Keep the vendors and the customer lists so they at least know they have the customer and they would need to check the paper file.  How would you do this?

Thank you for joining this thread, JBLL. I'm here to guide you on how to keep the file and remove selected transactions.

If you turn over your books to your client, you can keep the customers and vendors in the account. You can share the books, and utilize the Condense Data utility to remove selected transactions.

Here's how:

1. Go to File. Then select Utilities.
2. Tap Condense Data.
3. Select Remove the transactions you select from your company file. Select Next.
4. In the Condense Data window, select Transactions before a specific date.
5. Click the transactions you want to remove, then Next.
6. Pick how you want your transactions summarized. Then Next.
7. Select how inventory should be condensed, then Next.
8. Tick the transactions you want to remove, then Next.
9. Choose the list of entries you like to remove, then Next.
10. Select Begin Condense, then wait for the process to complete. Click Close.

Additionally, I've added these articles about importing your lists and entering existing balances in QuickBooks:
 

• Import and export data.
• Enter opening balances for accounts.

Don't hesitate to comment if you still have concerns about keeping your files in QuickBooks Desktop. I'm always here to help you out. 

@JBLL 

Do you have QB Online or QB Desktop?

QB Online

@JBLL 

Convert your data to QB Desktop and run the Condense Data utility on the trial version to remove data prior to 1/1/2024. You will only need to share the condensed company file or help the new owner converting it to a new QBO account.