QuickBooks clean up

The QuickBooks clean up company data utility is a free and is included within QuickBooks that you purchased. This QuickBooks clean up company data utility may be able to help you, if your QuickBooks accounting data files are being requested by the IRS,an attorney,a court proceeding  or if you just want to save a little  file space and improve your computer’s performance then you should consider using the QuickBooks clean up company data utility. When you clean up your data file, QuickBooks deletes transactions that you no longer need. I will  replace the deleted transactions with new general journal transactions that summarize, by month, the transactions that were just deleted. An example of this procedure is shown in my video. You can also choose to have QuickBooks clean up data by removing list items that you no longer need. By way of an example, if an invoice has been paid and no amounts are due for that invoice, QuickBooks deletes the details and includes the amount in a summary transaction showing income accounts.The customer information and item information is deleted. As far as reports, you are able to generate  reports that summarize financial activity for the period of time you cleaned up. In this regard,QuickBooks  provides a summary of transactions in  your company file so that you are able to review to ending  account balances. For example, if you clean up last year’s data, you can produce an income statements  that compares the prior years information to the current year.

Set forth below are some high level QuickBooks clean up company data utility data points:

• The QuickBooks clean up company data utility removes detail from  unneeded years or periods. However, all years summary data remain intact in a monthly format when using the QuickBooks clean up company data utility
• There are some serious drawbacks  to using the  QuickBooks clean up company data utility which are discussed in my video(s), which you  should be aware of them. Click here to go to the Intuit website to learn more about these drawbacks.
• The QuickBooks clean up company data utility removes unneeded list items
• The QuickBooks clean up company data utility reduces risk of using wrong list item after item is removed
• The QuickBooks clean up company data utility may improve(emphasis added)  performance somewhat by reducing file size 10%-15%

For more information concerning the QuickBooks clean up company data utility please see my video’s  entitled on the right panel:

1. How the  QuickBooks clean up company data utility or condense data company file utility can help you ?

2. Demonstration of the QuickBooks clean up company data utility process

The following is an interesting post, that appeared in a February 2011 thread within a QuickBooks Linked-in group, that presents the Intuit’s view concerning the IRS :

Rich Walker • Hello, this is Rich Walker from Intuit. Thanks for sharing the various methods and processes that you’re using to deal with the IRS agents’ requests. It appears that some of the agents are being overzealous, particularly in asking for Admin passwords.

A small group of Intuit employees met with the IRS in January, and they indicated that they plan to access electronic records and data during audits from multiple commercial financial software products, including Peachtree and other small business accounting applications.

According to the IRS, the legal authority for requesting a taxpayer’s electronic accounting software backup files and accounting records in electronic format is based on IRC Section 6001, Regulation 1.6001-1(a) and -1(e), Revenue Ruling 71-20 and Revenue Procedure 98-25.  The approaches that this group has proposed are helpful in complying with the IRS’ demand for information, without providing the full electronic file upon first request.

As we learn more, we’ll keep you posted

The QuickBooks clean up company data utility may work in some circumstances. If the free QuickBooks clean up company data utility provided by Intuit doesn’t work to your satisfaction, there are some alternatives that can permanently remove prior year history. The alternatives include purchasing the software or hiring someone that has the software who is able to perform the QuickBooks clean up services on a hourly basis or agreed upon fee basis.