15 Nov When to Create a New File
When to Create a New File
If investigation of the data yields circumstances that are not easily corrected (typically with payroll or inventory) the determination may be made to start a new file. If that is the case, the lists (i.e. customers, vendors, etc.) can be transferred to the new file. The advantage to this approach is that the transactions can be left behind in the old file, while the lists can be transferred to eliminate entering them again. With version 2002 this process is further simplified with the addition of a choice to remove all transactions (File > Archive and Condense Data > Remove ALL transactions) while retaining the list, preference, and subscription information.
It is not necessary to start with a new file each year. In fact, it is the opinion of this author that this process should not be done. If internal controls are in place for protecting the prior data, the task of re-entering all the beginning balances can be avoided. The additional benefit is the ability to research activity and create comparative reports with the prior data.
TRICK: You know how it goes during tax time. Small businesses had thought they could do everything themselves, and now they walk into your office saying “I know I am kind of late, but can you do my taxes so I don”t have to file an extension?” You don”t make any promises, but say you will see what you can do. You open the file and . . . To learn about our approach for handling problem files visit http://www.4luvofbiz.com/quic_news_64.html for the 4 step process.