Archived
05-03-2008, 08:01 PM
On January 1, 2001 I will be switching from an old DOS software to QB 99 Pro. I have to set up 5 of our ranches as separate companies. I will need to start writing checks almost immediately after 1/1/01. Can I choose January 1, 2001 as the "go live date" and start entering vendor's information and payroll information now (two months in advance)?
I am not planning to use the Interview feature, except for the first necessary steps.
Thank in advance for your response.
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...I will need to start writing checks almost immediately after 1/1/01. Can I choose January 1, 2001 as the "go live date" and start entering vendor's information and payroll information now (two months in advance)?
====================================
There shouldn't be any problems. Entering any QuickBooks List information (Accounts, Classes, Vendors, Employees) that you can, in advance, is a great thing to do. As for beginning to write checks immediately on 1/1/2001, that should never be a problem. All you need to do is enter a correct beginning checkbook balance.
One thing to consider is how you'll reconcile your first bank statement. Let's say you receive a statement on about the 20th of each month. The statement you receive on 1-20-2001 will of course include outstanding checks/deposits from December, 2000.
One way to get those old checks/deposits represented in the Check Reconciliation window is to simply write one big check or deposit for the net amount the statement is "off"--and be sure you date it in the year 2000 so it's not included in your 2001 records.
Another way is to actually enter each of the outstanding checks and deposits, again being sure you date them in the year 2000 (using their actual dates is best). This way is best if you have some old checks that remain outstanding as of your 1-20-2001 statement. Since they may not clear for a month or two, if you've entered them individually they will hang around in the Check Reconciliation window for as long as you need them (i.e., until they clear the bank and you can mark them as cleared).
Mark Wilsdorf
Flagship Technologies, Inc.
http://www.goflagship.com
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(11/6/2000 8:30:56 PM) Profitbalance wrote:
...enter all the outstanding checks from the previous year into the new software by using the "Write Checks" feature and by debiting the same checking account that I am crediting when I write a normal check (Debit to Checking account and Credit to Checking account for the same amount)
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Yes this would work, but it's unnecessarily messy--you're making a lot of additional entries when one big one would do. You can debit the checking account with a single General Journal entry anytime you want correct the balance--just date it 12/31/2000 or earlier, so it doesn't show up in 2001's records.
Mark Wilsdorf
Flagship Technologies, Inc.
http://www.goflagship.com
==========
You need to be careful when using prior-year
in your checking acct while inputting O/S checks.
If you assign these checks to a legit "expense"
more than likely you're going to create a problem
with your Retained Earnings acct. QB will be doing
some automatic End-Of-Year acctg entries, and will
be reading all those Expense Acct charges as something
that needs to be closed into Retained Earnings as
it crosses into a new (current) Fiscal Year.
When creating a new QB company, outstanding cks fm a prior Fiscal Year shd only impact the Opening Balance
Equity acct.
====================================
(11/7/2000 8:06:12 AM) Mark Wilsdorf wrote:
====================================
(11/6/2000 8:30:56 PM) Profitbalance wrote:
...enter all the outstanding checks from the previous year into the new software by using the "Write Checks" feature and by debiting the same checking account that I am crediting when I write a normal check (Debit to Checking account and Credit to Checking account for the same amount)
====================================
Yes this would work, but it's unnecessarily messy--you're making a lot of additional entries when one big one would do. You can debit the checking account with a single General Journal entry anytime you want correct the balance--just date it 12/31/2000 or earlier, so it doesn't show up in 2001's records.
Mark Wilsdorf
Flagship Technologies, Inc.
http://www.goflagship.com
I am not planning to use the Interview feature, except for the first necessary steps.
Thank in advance for your response.
==========
====================================
...I will need to start writing checks almost immediately after 1/1/01. Can I choose January 1, 2001 as the "go live date" and start entering vendor's information and payroll information now (two months in advance)?
====================================
There shouldn't be any problems. Entering any QuickBooks List information (Accounts, Classes, Vendors, Employees) that you can, in advance, is a great thing to do. As for beginning to write checks immediately on 1/1/2001, that should never be a problem. All you need to do is enter a correct beginning checkbook balance.
One thing to consider is how you'll reconcile your first bank statement. Let's say you receive a statement on about the 20th of each month. The statement you receive on 1-20-2001 will of course include outstanding checks/deposits from December, 2000.
One way to get those old checks/deposits represented in the Check Reconciliation window is to simply write one big check or deposit for the net amount the statement is "off"--and be sure you date it in the year 2000 so it's not included in your 2001 records.
Another way is to actually enter each of the outstanding checks and deposits, again being sure you date them in the year 2000 (using their actual dates is best). This way is best if you have some old checks that remain outstanding as of your 1-20-2001 statement. Since they may not clear for a month or two, if you've entered them individually they will hang around in the Check Reconciliation window for as long as you need them (i.e., until they clear the bank and you can mark them as cleared).
Mark Wilsdorf
Flagship Technologies, Inc.
http://www.goflagship.com
==========
====================================
(11/6/2000 8:30:56 PM) Profitbalance wrote:
...enter all the outstanding checks from the previous year into the new software by using the "Write Checks" feature and by debiting the same checking account that I am crediting when I write a normal check (Debit to Checking account and Credit to Checking account for the same amount)
====================================
Yes this would work, but it's unnecessarily messy--you're making a lot of additional entries when one big one would do. You can debit the checking account with a single General Journal entry anytime you want correct the balance--just date it 12/31/2000 or earlier, so it doesn't show up in 2001's records.
Mark Wilsdorf
Flagship Technologies, Inc.
http://www.goflagship.com
==========
You need to be careful when using prior-year
in your checking acct while inputting O/S checks.
If you assign these checks to a legit "expense"
more than likely you're going to create a problem
with your Retained Earnings acct. QB will be doing
some automatic End-Of-Year acctg entries, and will
be reading all those Expense Acct charges as something
that needs to be closed into Retained Earnings as
it crosses into a new (current) Fiscal Year.
When creating a new QB company, outstanding cks fm a prior Fiscal Year shd only impact the Opening Balance
Equity acct.
====================================
(11/7/2000 8:06:12 AM) Mark Wilsdorf wrote:
====================================
(11/6/2000 8:30:56 PM) Profitbalance wrote:
...enter all the outstanding checks from the previous year into the new software by using the "Write Checks" feature and by debiting the same checking account that I am crediting when I write a normal check (Debit to Checking account and Credit to Checking account for the same amount)
====================================
Yes this would work, but it's unnecessarily messy--you're making a lot of additional entries when one big one would do. You can debit the checking account with a single General Journal entry anytime you want correct the balance--just date it 12/31/2000 or earlier, so it doesn't show up in 2001's records.
Mark Wilsdorf
Flagship Technologies, Inc.
http://www.goflagship.com