deleting old data

Deleting data does not conform to Generally Accepted Accounting Standards. Accountants don't like to delete things, especially stuff only a year or two old. The IRS does not require you to be able to read, but they do require you keep records for some extended period. What that period is, I do not know, since we keep everything forever anyway (plus two copies in different, undisclosed, locations).

Consult your own accountant regarding how long you should be retaining records.

As far as purging data, we should only be talking about the primary operating data file. You should have backup copies (multiple copies in different locations for safety) of the QB data file covering the entire record retention period. If you need to access this old data you can always reload the backup data file.

The media you use for these backups is also important. Be sure to use something that you will be able to read in the future. A tape format probably is not a good choice. Currently the best choice probably is to copy the QuickBooks Backup File (using the QB backup menu item) to a good quality CD/DVD. I also suggest that you retain the QB program disks in case you need to reload an old version of the program. QB has been very good about updating the data file across multiple years (e.g. 2003 directly to

2006) but there is no guarantee that I am aware of. For instance-- if it is 2006 and you need to look at 1999 data, you might need an old program.

There is nothing wrong with deleting prior data that you do not need to currently refer to-- as long as you have the backups mentioned above.

To perform the purge (QB calls it "Clean Up Company Data"), use File>Utilities>Cleanup Up Company Data in QB 2006. I strongly suggest that you review the Help Files regarding Clean Up before you try it. Also be sure to backup your file first.