I am working with a small business that has been doing their own books for some years. Since 2013 the AR process has been: 1. Invoices - AR accounts for individual client (+AR / -Sales) 2. Payments - booked to Sales (+Cash / -Sales) then one of the 2 true ups at year end: a. Post correction to sales/AR to "Misc Client" AR account with negative balance to offset other balances b. Journal Entry to AR/Sales with no actual AR account HOW do I clean out the individual AR account balances without making a bigger mess? First I need to apply the Neg balance "Misc Client" to the AR accounts, then somehow apply the generic JE to AR to the individual accounts. Any help would be very much appreciated. (The go forward process is ok, just need help with prior periods)
Sorry to say this, but I would not touch it. What ever you do historically, is going to affect some balance today, not to mention the financial statements used for taxes each year.
If it were me I would start a new company file, enter starting balances and use the forms provided to enter transactions when moving forward. QB is not a journal type accounting program at the user view. Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.