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Level 1

Should I start over in Quickbooks Online after 3 years?

QB Community, I have done everything wrong from the start.  When I started my small business three years ago, I co-mingled transactions from two business accounts. I was making money from consultng and trying to fund a small website startup at the same time.  Now I have have 3 checking accounts and two credit cards for 2 companies.  I tried hiring a bookkeeper last year and it was a ton of work just to explian the mess I made. Not to mention expensive.  I got my taxes done for 2016 on time but now I found all the reconciliations are off.  What do you recommend?  Should I just start fresh for 2017?  Or Should I start over from strach from 2014?  I am guessing if I tried to go back and reconcile the current companies it would take about 100 hours.  Is it better to delete and start new companies in Quickbooks?  Any recommendations?

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Best answer 10-29-2017

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Community Champion

Should I start over in Quickbooks Online after 3 years?

For 2 companies you need 2 companies in QBO. I would leave everything in place up through 2016 and start fresh for 2017 with an additional file for the smaller of the two companies. Make sure your beginning balanes for 2017 are accurate per bank statements. If you reconciled correctly even though comingle expenses the bank accounts and credit card statements should have balanced on 12/31/16. If they don't it means you over reported or underreported income or expenses for one or both companies. You can file amended returns, which is correct procedure, or you can leave the returns alone and post any adjustments in 2017 for what was out of balance (incorrect and potentially harmful if it changes reportable income significantly as in enough to make a difference in taxes)

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Highlighted
Community Champion

Should I start over in Quickbooks Online after 3 years?

For 2 companies you need 2 companies in QBO. I would leave everything in place up through 2016 and start fresh for 2017 with an additional file for the smaller of the two companies. Make sure your beginning balanes for 2017 are accurate per bank statements. If you reconciled correctly even though comingle expenses the bank accounts and credit card statements should have balanced on 12/31/16. If they don't it means you over reported or underreported income or expenses for one or both companies. You can file amended returns, which is correct procedure, or you can leave the returns alone and post any adjustments in 2017 for what was out of balance (incorrect and potentially harmful if it changes reportable income significantly as in enough to make a difference in taxes)

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Level 1

Should I start over in Quickbooks Online after 3 years?

John, thanks for your answer.  I do have two separate QBO accounts, one for each business.   The challenge is I have transactions that cross accounts.  For example, I made a purchase on a credit card for business #1, and then paid the balance from a checking account from business #2.  How do you recommend reconciling?    It started to reconcile for 2017 but this requires huge reconciling adustments that throw off the accounting statements. 

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