How to Create QuickBooks Company File?

A QuickBooks company file has all the information regarding the company. If you want to get started using QuickBooks the very first step is to create a company file. It is very important for you to create the company file correctly because it directly affects the overall efficiency of QuickBooks accounting software. You can use your business information to create your company file. The product comes with a step-by-step guide that takes you through the set up.

Steps to create a company profile

There are two ways to create your company file in QuickBooks Software:

Express Start :

• The first step is to open QuickBooks Desktop software.
• Now, you have to create a new company on the no company open window.
• After that you have to click on the Express start option.
• Here you have to fill the required information in the QuickBooks setup.
• Now, click on create company.
• After creating your company file you can start creating the charts of your accounts,customers, and the services.

Detailed Start :

• The first step is to open QuickBooks Desktop software.
• Now, you have to create a new company on the no company open window.
• After that you have to click on the Detailed start option.
• Now you have to fill out the easy step interview screen and tap on Next.
• Then you have to select your industry and click on the Next.
• Now you have to identify the type of your business entity and click Next.
• Then you have to set the Fiscal year for which you want to create a company profile and click Next.
• Here you have to set your QuickBooks Administrator Password and click Next.
• After that, choose the location of your company profile and click Save.
• Finally, save your company profile.Here you can customize your QuickBooks by clicking Next.

Once you are done, after that you can start working in QuickBooks Desktop.

Start a new company file in QuickBooks

Follow the steps to start a new company file in QuickBooks:

• The first step is to clear the company data for that you have to Select the File menu, then choose Utilities, and from there you need to then Clean Up Company Data.

In the new company file your lists, preferences, and service subscriptions are retained, but there will be no transactions.

• You can either create balance forward invoices for a lump sum customer balance or you can also re-creating individual invoices receivable to rebuild the outstanding balances in accounts.
• You can also recreate vendor balances from the Vendors menu with the help of Enter Bills option, charging these bills directly to the Uncategorized Expense account as they are opposite to individual expense accounts.

Thing to remember if you are creating a new company file in QuickBooks

• This feature isn’t available to payroll users because of the critical payroll information contained within payroll files.
• The QuickBooks Online users will also not be able to use this feature because of security and time related data from the financial institution.
• If you choose to create a new company file for every new year then You won’t be able to run comparative annual reports.

Things you need before starting a new company file

You need some of the reports in the new company file to create the accounts receivable (A/R) and accounts payable (A/P) year-end balances and to create the opening balances for all balance sheet accounts.

You need to manually enter inventory value, stock status, and any of the outstanding banking transactions.

Customer Balance Detail report

• Select the Reports menu.
• After that Select the Customer & Receivables and then select Customer Balance Detail.

Vendor Balance Detail report

• Select the Reports menu.
• Select Vendors & Parables and then you have to select Vendor Balance Detail.

Standard Balance Sheet

• Select the Reports menu.
• Select Company & Financial and after that select Balance Sheet Standard.

Benefits of creating a new company file at the year end

• There will be no problem in the performance of your computer because of the large data files.
• Sometimes there are chances that your data is tempered because of an accident so it provides an extra security layer against it.
• This feature is also useful when you want to structure your data again and clean up your current data by removing the unused items, accounts and names.

We can also create a company file which is portable. The portable company file helps in transferring the file back and forth. This format is considered as the preferred format when we need to do the work which we can not do in account’s copy.

How to Create a Portable Company File?

• First you have to open your QuickBooks file and then click on the file menu in the top left of the screen, then click on Create Copy.
• Then click on Portable Company File and then click Next.
• To save Portable Company File screen you have to choose a location to save the file such as your desktop or your flash drive.

Conclusion

At last i want to conclude that with QuickBooks it is very easy to create a QuickBooks company file like there are two options to create a company file with QuickBooks like Express start and Detailed start. Both the options will help you to create new company file. But the only difference between the two is that in Express start will setup a new company file for you based on some standard industry settings while on the other hand the Detailed Start opens the Easy Step Interview and will give you more control over the fine tuning of your company file.You other options are to create a file by copying list data from an existing file, or by converting data from another accounting system. Also you can create a portable company file if you want to move or transfer the file back and forth. To get more information you can contact us at our toll-free QuickBooks support number +1-844-397-7462.