Chapter 11 post petition accounting

nick25 · ‎March 15, 2021

A tough One! We have a new client who uses QB Online, and is filing under Chapter 11. But for an unfortunate law suit, it is a strong company, so it will emerge in good health. I believe Chapter 11 requires closing pre-petition books, and opening separate post-petition books for all accounts and transactions. I know that our client can create a new company within QB and move lists (vendors, customers, inventory, and chart of accounts) to the "new", post-petition company, but is that the best way (it certainly sounds the cleanest)? I've also heard of "adding new post-petition accounts to the existing (pre-petition) chart of accounts. Has anyone gone through this process using QuickBooks? Is there another way? I'd be amazed and grateful for any and all advice!

Rustler · ‎March 17, 2021

I have not gone through this, but you can only create certain accounts as a new chart of accounts in QBO. Some accounts like a/r, a/p, sales tax, inventory all remain

Best option IMO is to start a new subscription and start from there

nick25 · ‎March 19, 2021

Rustler, I really appreciate your good advice, and I'm inclined to think that your idea to add a new subscription is the cleanest way to keep NEW Receivables and Payables separate from the pre-Chapter 11 ones. So I guess I would import the major lists (Chart of accounts, vendors, customers, inventory) and then begin adding new bills and invoices, and creating Journal Entries to carry over the major ending balances as the new beginning balances. (I confess I wish one of our Community had some Chapter 11 experience. I think we're on the right track, but I lack confidence!). Thank you again - you are a great asset!

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Chapter 11 post petition accounting

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