QB 2006 reconciliation repairs

your best bet is to leave the old stuff alone.

Start with a new company say as of january first or the beginning of the company's fiscal year.

import the chart of accounts and the vendor and customer lists though, this will save you a ton of time

you may do a little of going back and forth between the "2" companies the first few months but you will find after a few months you will hardly ever look at it.

Users like this are the reason some CPAs hate QuickBooks. Your erroneous prior records are the only documentation there is for years of tax returns, financial statements and loan applications. Change transactions retroactively and you destroy not only your reconciliations, but all this documentation. The last person I knew who did this actually cost themselves and my CPA firm more than $60,000! That is why QB has a special preference for locking prior period records.

You should make all changes to prior periods so they ONLY affect current amounts. You also should be very grateful if you do not have to worry about the different ways that you, any CPA who reports on a financial statement for you, Internal Revenue and the SEC may define an extraordinary event, which is what you must know to justify prior adjustments. The first thing you must be able to do is to define how VERY substantial and unusual the change was in each prior period. Can you do that?

Mike Block - QuickBooks Tax Cut C.P.A. Intuit paid me to make QuickBooks better!

I was actually thinking very seriously about dropping the earlier years and starting over fresh for 2006. I will have to talk to the business owner and check the options.

The problem is that for the earlier years the reports are pretty useless. It's a construction company, and it would be very useful to have the data of what was spent in various categories, etc.

Although, starting a new year fresh doesn't stop us from straightening up the earlier years when we have time and the necessity.

I don't actually know how the taxes, etc. were arrived at. But I could let sleeping dogs lie, and deal with it if some issue comes up. It probably won't.

We do have unaltered backups.

Not sure what you mean here. You mean add in corrections to earlier years in this year?

You also should be very grateful if you do not have to worry about

No, we are a small company, and I don't think we will have issues here.

Not sure what you mean here.

Thanks, I really do think this is the best idea. If I do start fresh for

2006, which would not be nearly as difficult, I would still have the option of tackling the earlier years in the separate file if needed.

GC