September 15, 2017 at 4:54 pm #100750
I was hoping you could provide some advice and insight on how to best implement a change in our company’s chart of accounts. We operate a medium sized business and want to revamp our chart of accounts to better report our operating activity. We currently us Quickbooks Online and would like to continue using the same software. We were thinking about creating a new QBO company and importing our new chart of accounts with the Beginning Balances for the Balance Sheet items. We we’re wondering what planning we should do and what sort of problems we need to look out for as we prepare for this switch. Any advice you have would be greatly appreciated.
Omar MendezSeptember 15, 2017 at 5:12 pm #101131
I’m not sure if you are aware, but you can actually rename/number your accounts in QBO pretty easily. However, if the change you are making goes well beyond that, then a new QBO company file may be the best solution. With that said, here are the things I recommend you do: (not necessarily in this order)
1. Make the change effective at the beginning of a month or a quarter. Having a clear start date of the “new” accounts will help you if you determine whether or not the change in accounts caused the problem.
Run the following reports in the existing QBO company file so that you can run them in the new QBO file and make sure that they match:
2. Bring over all balance sheet account balances as you mentioned for every account except A/R and A/P. For these two accounts, you should enter all of the details for open invoices and outstanding bills into the new QBO company file to establish these balances. This will allow you to easily apply payments.
3. Import your existing customer, vendor and products and services list so that you don’t have to enter this info manually. Below, are video tutorials that will walk you thru how to easily do this:
a. How to set up customers: https://fitsmallbusiness.com/set-up-customers-quickbooks-online/
b. How to set up vendors: https://fitsmallbusiness.com/set-up-vendors-quickbooks-online/
c. How to set up products & services: https://fitsmallbusiness.com/set-up-products-services-quickbooks-online/
4. Import your brand new chart of accounts list. Here is a video that will show you how:
I hope everything goes well and thank you for reading!
All the Best-