I am creating a new QuickBooks Desktop company file for an existing business at start of their new fiscal year. Do I have to re-enter all open invoices at the end of their fiscal year or can I enter a balance only for each customer?
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Hello @Abachelorgirl :
Enter the invoices. That way you can clear them as the payments post. It is a much better business practice. There are some apps out there (SaSSant and Business Importer come to mind) that can do that moving invoices from one QB DT file to another if you have a large amount. But if not, just redo them. There is also a program called TBX trial balance exporter that is pretty sweet for moving to a new desktop file from an old one. It does the whole process for you automatically. The app developer is very invested in her program too.
If you have more questions, feel free to reach out to us! We are more than happy to assist! :)
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There are a lot of invoices so I will look into your suggestions for importing them. It would be a big timesaver!
Thanks for your suggestions and comments.
Me again. The two products you suggested seem to be importing from Excel or csv files. I have a large number of invoices so am concerned about having to export them to Excel then importing them.
Comments or suggestions pls.
In QuickBooks Desktop, we can only export the lists, but not the transactions themselves. Since you're creating a company file for the new fiscal year, you can enter the balances only for the individual customers.
You can enter the amount in the OPENING BALANCE field when you create the customer profile. Feel free to view screenshot below.
If you have already created a customer profile (without an opening balance), you might want to ask your accountant on how to enter this.
As always, seeking professional advice from accountants would be our best option because they know what's best for you and your books.
I'l be around if you need anything else.
We never-never recommend using that opening balance field. It makes a mess of the books. It puts the balance in the opening balance equity account. An account that should have a zero balance when done.
Again, a better practices to enter all the invoices.
Assuming the new fiscal year begins on 1/1, I usually enter all open invoices at 12/31 using 12/31 as date and posting to opening balance equity. As of 1/1 they're in A/R with opening balance equity at zero. Don't need reports at 12/31 as they are in the old company file.
I was seeking an easier solution then re-entering because there are so many invoices spanning years but seems as if it's the best way to go.
Thanks for all your help!
Thanks for coming back.
If you're using QuickBooks Desktop for Accountant or Enterprise, you'll be able to enter these transactions by batch. It helps to lessen the hours spent if you manually enter the invoices one at a time.
If you're using other versions of QuickBooks, you can import these invoices using a .IIF file. Please refer to this article on how to export, view, edit, and reimport a sample .IIF file: Export or import Intuit Interchange Format (.IIF) files.
Let us know if you have any questions. We'll be right here to help.
I'm using Desktop Pro so it appears I'll have to re-enter all of these invoices individually. Probably best because they span more than one year.
Thank you for the link. The article made it clear that this one-by-one process makes the most sense.
There is also always a possibility to export your Invoices from the old company and then import them in batch by the use of different third-party apps. If you manage to get your invoices stored within .xlsx(excel) , csv or .iif file and you need them to get appeared in any desktop version of QuicKBooks that is not older than of 2012 you can get an app, I was using a lot, named Business Importer for Desktop.
That is rather intuitive tool that will help your processes to get done in a fast and convenient manner. Moreover, they have an indeed friendly support team that can help you to expedite solving your tasks should you have difficulties using the app.
You never stated Why you are starting a new file. You don't do this for a new fiscal year; you just keep working in that one data file.
You avoid Beginning balances, because you are bypassing Sales and Income. A cash basis entity and an accrual basis entity both would use Actual Invoices, dated Historically, for example.
The last bookkeeper butchered the IOLTA transactions over 13 years. I was unable to get accurate reporting so I decided to leave that behind and start a clean file going forward where the processing was correct. The attorneys agreed.
Starting a new Law File like this is the same as a Transition, as if you are New to QB.
There are lots of little steps. Examples:
1. Take the Trust Bank statement and compare that to Liability. Build that account balance in the new file by using the Sales Receipt method. Make sure to account for the Firm's own deposit as Other Current Asset, not Liability.
2. The open invoices need to be evaluated for income vs Advanced Costs. You cannot enter them now, if some are repayment of advanced costs, unless you also enter the Advanced Costs from the Trial Balance.
3. You also need to know if you are cash or accrual basis, because you don't use some generic Opening balance. The Details Matter.
Thanks for sharing some details.
I’m not clear on your statement re the firm’s own deposit as other current asset. Pls explain (again).
I have beven now using sales receipts for retainers and going back and cleaning up erroneous entries.
This firm’s monthly invoices to clients are for fees and what they categorize as reimbursed expenses such as courier expenses, copying etc.
When there’s a lump sum settlement they pay some to another vendor like BCBS, some to another law firm and some to their own firm. Are any of thers advanced costs?
In the past I’ve entered open invoices using 12/31 charging to opening balance equity. I’m not trying to bring all TB balances over. Just for the balance sheet. Therefore actual data will be for 1/1 forward and accrual not cash based.
Historical data will will remain in the original company file.
I appreciate all of your replies and assistance.
I get it. What’s interesting is that they’ve been keeping their books without these considerations for a very long time. Their CPA had not alerted me to any of this as a requirement. I doubt I would have taken this project on.
Seems I need to have a conversation with the CPA before endeavoring to make all these procedural corrections. It’s going to take a lot of time to get this turned around.
Thanks again for sharing your expertise.
I’m thinking about that. It may make the most sense to go back to 12/1 when I came on board and correct my entries.
Appreciate the feedback
Greetings Abachelorgirl ,
I'm happy to see that you were able to find the solution you're looking for, thanks to the awesome insight provided by qbteachmt.
The Community is loaded with experts possessing knowledge in all facets of QuickBooks, so please reach out to us here if there's anything you need. We're always happy to help you along your road to victory. Wishing you and your business continued success.
Decision made! Going to correct retainer issues and other mistakes in company file. Not going to set up a new company file.
Fingers crossed! Thanks for all your help!
Hi there, Abachelorgirl.
Let me start by saying how much we appreciate you for getting back to us and providing additional information about your decision.
Please remember you can always reach out to the Community for all your QuickBooks needs. I'm always here to help out.