How to tidy up prior year invoices that was generating by QuickBooks desktop itself?

Maintaining organized and accurate financial records is essential for any business, as it not only helps you keep track of your financial health but also ensures compliance with regulations and prepares you for future growth, Ohn. I appreciate your attached screenshot, which provides valuable context for our conversation. I'll share some information about tidying up your accounts.

You can manually Delete the previous invoices generated from the memorized functionality to tidy up your Account Receivables account. Since you mentioned some child left and haven't closed your books for May yet, permanently removing transactions will not affect your overall financial data. To do this, perform the outlined steps below:

1. Navigate to the Charts of Accounts page and choose the Account Receivables account.
2. Right-click on the invoice in question.
3. Select Delete Invoice.
4. Click OK.
   

Additionally, I encourage you to consult an accountant to ensure your books remain organized and up to date. Engaging with a professional accountant can provide numerous benefits that go beyond basic bookkeeping. Their expertise not only enhances the quality of your bookkeeping but also contributes to the overall success of your business.

Comment below if you have additional questions, Ohn. I'm here to help you navigate your QuickBooks journey and ensure you have all the information you need to succeed. Whether you're facing a specific challenge, seeking clarification on a feature, or looking for best practices, don’t hesitate to reach out. Your queries not only help you but also contribute to the collective knowledge of our community.

Hi Erica,

I have deleted some invoices till May 2024, I have closed the book for 2024 April. Will it be changing the balance If I delete the invoices from the month that I had closed the financial till April 2024? Thank you.

Yes, the balance will change if you delete an invoice, @Ohn. I appreciate you returning to the thread and adding a follow-up question about your concern. Know that we're delighted to help you. Let me give you more understanding.

The Accounts Receivable (AR) and income will be affected once you delete an invoice from the month you closed the financial until April 2024. For a proper guide for your financial data, I recommend seeking advice from a certified QuickBooks ProAdvisor or a qualified accountant to handle the deleting of invoices from a closed period.

If you don't have an accountant, I can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

On the other hand, to track your company's financial information, you can generate a report to help you with this. For assistance, see this link: Customize reports in QuickBooks Desktop.

Please know that you're always free to make this thread active. If concerns are still up in your mind, let me know. It will be great to help you again, @Ohn. 

Hi Kayepe,

Thank you for your answer. I would like to know one more thing about regarding my concern in the previous question. I also want to know whether I can make credit memo to those outstanding invoices which was from closed financial period. If yes, please guide me how to process the credit memo for those outstanding invoices which students were left from school for a long time. We are sure we will not get any money from them since those invoices were auto generating after students left. 

You can write the invoices off as a bad debt instead of making a credit memo. Thank you for coming back here, @Ohn. I know that handling the unpaid invoices is essential to you right now. Allow me again to help you with this.

You don't need to create a credit memo. Instead, you can consider those invoices as bad debt. It will ensure that your accounts receivable and net income remain up-to-date. To proceed, please follow the guide below.

The first step is to add an expense account to track a bad debt.
 

1. In the Lists, click Chart of Accounts.
2. Hit Account and select New.
3. Pick the Expense and tap Continue, then put the Account Name. (For example: Bad Debt)
4. After that, Save and Close.

Once done, you can now close out the unpaid invoices. Here's how:
 

1. From the Customers menu, tick Receive Payments and enter the customer's name in the Received from.
2. Put $0.00 for the Payment amount and click Discounts and Credits.
3. Put the amount you'd like to write off in the Amount of Discount, then choose the account you added in the first step for the Discount Account.
4. If finished, hit Done and Save and Close.

Moreover, you can also reconcile to ensure that your accounts match your real-life bank and credit card statements. For a guide, see this reference: Reconcile an account in QuickBooks Desktop.

I'm happy to help you again, @Ohn. Drop more questions below to be assisted in achieving your business goals using QuickBooks Desktop (QBDT). The Community forum is always here for you.