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Level 1

Zero out all balances

I have a client that changed her business from a sole proprietor to a corporation. She has kept the same QBO account. So to have everything separate I would essentially need to zero out everything, but Quickbooks Online doesn't have any non posting accounts. If I deleted everything then I would loose all of the company invoices since incorporating. Which could be a problem. Any ideas on what I can do?

5 Comments
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Level 1

Zero out all balances

HI there, 

 

We did teh same thing last year, we went from a Sole Prop to Inc. I was reccomended to start a whole new QBO account. both the old account and the new are still available to me when I log in. I choose which one I need. It allowed me to start fresh as a new compnay since it technically is and still have the history. 

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Level 15

Zero out all balances

@Jeanette

 

Starting a new file is a requirement, the s-corp is a legal entity, with an FEIN, state registration, new sales tax account, and payroll, in addition to other things.


The sole-p should file a final schedule C, closing the business. And if you have sales tax, then you need to close that too and get a fully paid statement from the state.

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Level 1

Zero out all balances

I may just save the entries in an excel format and clear out everything. I would need to have the backup for all of the previous years so could have it in the entries in the journals. If I close the one account it may not be available for very long, so I am concerned about getting a new account.

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Level 1

Zero out all balances

I know it is a separate entity, and the easy part is closing all of the sole proprietor accounts.  Here in Canada our tax laws are more complicated and different when closing accounts etc.  I may just download the journals of everything and wipe it clean then start anew. But thanks for the help

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Anonymous
Not applicable

Zero out all balances

@WFC, any best practices you can recommend to @Jeanette to help make her transition a bit smoother?

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