How To Create & Setup New Company File In QuickBooks?

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A company file is a very important element of QuickBooks and your business. It is a crucial document that stores your sensitive and important data. Most users find QuickBooks set up new company file a bit tricky. Specifically because several times your old data gets deleted as you establish it. However, this can be avoided. In this blog, we’ll discuss ways on how to set up a new company in QuickBooks and learn about QuickBooks company file.

What is a Company File in QuickBooks?

A company file is a very important document. It stores all your financial and accounting data from day one. This document stores all relevant company data. As your business grows, the company file grows with you. You can set up several company files for different businesses. However, one thing you need to keep in mind is that one business should have its own company file. Above this, each company file can be established only for one single business.

Knowing how to set up a new company in QuickBooks is important so that your previous data does not get deleted. Moreover, without QuickBooks set up new company file, you cannot manage any of your business operations as it is the company file that saves it all.

QuickBooks Set Up New Company File: Importance

We know that a company file is important for your business. We even know that it stores all your crucial and sensitive financial details. But why is it important to learn properly how to set up a new company in QuickBooks?

Companies have large information and data that overflows one company file. Therefore QuickBooks set up new company file ensures to provide a fresh company file that sorts out this issue.
The system performance will not degrade or fall down due to huge file size.
When an old company file is full it starts malfunctioning and affecting your performance. In QuickBooks set up new company file, a fresh file helps resolve this.
Knowing how to set up a new company in QuickBooks helps to avoid loss of data from old company files.
In case your new company file data is lost accidentally, you still have data stored in the old one and visa-versa.
Creating a new company file helps avoid future challenges and data loss.
QuickBooks set up new company file is important as you can delete unwanted items and caches and clean your system.
You can easily expand your data with QuickBooks set up new company file.

Things To Keep In Mind: QuickBooks Set Up New Company File

As you set up a new company file, there are certain things or points you need to know and keep in mind. These are:

With QuickBooks set up new company file, you can link multiple company data.
Data expansion is a most common problem in many forms, which is sorted with new company file QuickBooks.
If steps are not performed carefully, you might face problems and glitches.
If the old company file is saved in your system, make sure you provide a separate name for the new one.
New company file should be created when the existing one becomes huge.
QuickBooks set up new company file will not have the old company file’s details.
You can export data from old to new if you want to.

How To Set Up A New Company In QuickBooks?

Now that you know what a company file is and the leverage you get when QuickBooks set up new company file, you are all set to learn how to set up a new company in QuickBooks. But before that, make sure you meet the following requirement:

The file should be dated as of 31st December of the closing year.
The standard QuickBooks balance sheet is available.
The customer balance detail report is handy.
The vendor balance detail report is readily available.

Once you have all that is required, here’s what to do next:

Open your QuickBooks application.
As you launch QuickBooks, a no company open window will pop. tap on to create a new company.
Now you’ll have two options: express start and detailed start.

How To Set Up A New Company In QuickBooks Via Express Start?

As you tap on create new company.
Select the express start tab.
Enter business name, industry and type. If you want you can add these details later.
If you want to see a description about every type of business and Chart of Accounts, tap on help me choose.
Tap on the create company button.
The company file is created. Now you can add customers, Chart of Accounts, services, etc or do it later.
Then tap on start working to operate your company file.

How To Set Up A New Company In QuickBooks Via Detailed Start?

After tapping on create a new company, click on detailed start.
You’ll be seeing an easy step interview window, fill it out.
Once done, press next.
Select the type of industry and hit next.
Now you’ll have to identify the business entity type. Tap on next.
After choosing the fiscal year for which you wish to create this company file, tap next.
Now you’ll have to create an admin password for QuickBooks.
Once done, tap on next.
Make sure you choose a strong password.
Now select the location for saving the company file. Hit save.
If you want to alter QuickBooks like adding customers, vendors, Chart of Accounts etc, tap on next.
You can also do it later by hitting left.
All you have to do next is follow the wizard on the screen. It will help you finish setting up.
Make sure you give a unique name to QuickBooks set up new company file.

QuickBooks Set Up New Company File For Pro And Premier Users

The steps on how to set up a new company in QuickBooks for Pro and Premier are different from other versions. Here’s what pro and premier users should do:

In QuickBooks, navigate to the file menu.
Tap on condense data.
Now you will have to rebuild the remaining balances in accounts receivable via individual invoices or establish a balance forward invoice for a group of customer balances.
Go to the vendors section.
Tap on enter bills to enter vendor balances.
All the bills will be put under an uncategorized expense account.
The payroll files have vital details and therefore payroll users cannot utilize this feature.
This feature is not available for online banking users as well because of security concerns.
Now go to the file menu > new company.
Tap on the easy step interview > start interview tab.
Follow on screen instructions and add new company file’s details.

How To Set Up A New Company In QuickBooks? (From Existing One)

If there is already an existing company file in your system and it is getting larger in size, you might need QuickBooks set up new company file. Why? All the reasons and advantages are already mentioned. So let’s get to learn about setting a new company file if one already exists.

Step 1: Duplicate The Existing Old Company File

Launch QuickBooks on your system.
Open the company file you wish to duplicate.
Press and hold F2 key until a window pops.
This is a product information window. In here, tap on the file information button.
You’ll see all the details, look for the location of the file.
Move to the file and create its backup.
Now access the backup to restore the company file.
Make sure you change its name.
Now you have copies of the file.

Step 2: Delete The Transactions And Entries Into The Copy

Now that you have duplicated the existing company file, you have the same details in both. But in order to proceed, you need to clear out transactions in the copied company file. Here’s how:

Open the company file you duplicated, (the duplicate copy) and verify it.
In QuickBooks go to the file menu.
Move to the utilities section.
Tap on condense data.
This will open a prompt saying remove budget data.
Tap on yes.
Make sure you select all transactions and journal entries.
Hit on next and proceed with on screen instructions to clear out the copy company file.

Step 3: Ensure You Have Empty Accounts

In QuickBooks, move to the reports menu.
Tap on the reports center.
Locate account and taxes tab.
In order to launch a transaction list, make use of a date report.
Before previous transactions are copied into the company file, set the date range.
You’ll see the list is empty.
If any transactions are found, tap on edit and select the transactions.
Hit delete key on your keyboard.

Step 4: QuickBooks Set Up New Company File From Existing Company

Launch QuickBooks > file menu.
Go to the existing company file.
Tap on a new company.
Tap on the file tab and hit open.
Choose the file you copied before (the duplicate copy) in which you have emptied all accounts and transactions.
After this, provide a suitable name for this file.
Finally tap on create a company.

Winding Up

With this, we come towards the end of QuickBooks set up new company file guide. We hope you were able to understand and find answers related to the new company file QuickBooks. However, in case of other queries or if anything comes up, you can seek professional assistance by contacting our customer support team.

Creating QuickBooks set up new company file is not rocket science but with numerous steps it becomes a little confusing. Therefore we highly recommend that you follow all the steps without missing any. Failing to which will lead to issues and glitches and that will further eat up more of your time.

Frequently Asked Questions

Q.1 : How many companies can you have on QuickBooks desktop?

A: You can only have one company in QuickBooks desktop per account. If you want to set up more than one company, you’re gonna have to make more than one account.