I walked into a mess. Scenario: In February 2021 the wife of the owner passed away and he had absolutely NO clue as to how to run the business. His son and daughters had no clue either. Nothing much got inputted into QB as far as invoicing or receipts. All bank transactions and transfers have come thru. In January 2022, the owner hired an accountant that didn't do too much. She transferred him over from QB Desktop to QB Online. She didn't do any matching or reconciliations. She just left it as it downloaded. Another problem I am trying to figure out is a lot of the customers payments got deposited into the personal account instead of the business account. Won't that show non-payments from customers?? I've also noticed that the beginning balance is wrong and I have tried to change it but it will not change. Also there is a lot of transactions that have been categorized wrongly. It is looking like I am gonna have to go thru each customer and vendor one at a time as well as a year of bank statements cause there are a lot of charges thru the bank that are NOT in QB. I am just at a loss as to my next move. I have studied and researched what I should do but figured I would ask the professionals..I would appreciate any advice or help I could get. I am ready to throw in the towel for 2021.
As you're aware there is not going to be a quick fix. I would suggest using the QB Desktop version if you have access to it and that is what has been used historically. This will seem less daunting as you go.
I assume this was a sole proprietorship? Do you have access to all of the business bank statements? How about personal bank statements?
I would suggest starting with the deposits shown on the business bank statements and match those to outstanding invoices as best you can. Then, you can see what deposits don't have invoices and what invoices don't have deposits and use that to see if any deposits in the personal account can be matched to outstanding invoices in QB. For payments deposited into the personal account, you can set up a personal bank account in QB for those deposits (to serve as a clearing account) and eventually close that account to the owner's draws equity account.
When you say the beginning bank balance is wrong, are you referring to the Jan. 1, 2021 balance or ???