It's time to think about if you're going to want a new database for Jan? Also, it's time for you to get setup if you're moving to QuickBooks for the first time for 2014.
There are many advantages to a new database for the new year, including:
- Faster data retrieval. A huge database can become unbearably slow. One client has a database hit the wall in August. Trust me, you don't want to start a new database midyear if you run payroll or pay taxes by the calendar year.
- The ability to start fresh. A new database gives you the opportunity to clean up your chart of accounts, customer, vendor, and other lists, and especially payroll problems. Only lists transfer; no transactions. Modify that last sentence. I can transfer transactions with special software that I've used for clients before, but you'll have to keep your lists the same in order to move the data. Once data is moved, you can delete any list item that's not included in one of the transactions.
- The security of having only a single year in a single database; electronic information can become corrupted over time. I've rarely seen a QB database that lasted longer than 7 years electronically.
- The convenience of giving your tax preparer last year's database while continuing to run your day-to-day business without interruption.
- Last year, the IRS purchased QuickBooks. If you get audited, having a single year in a single database enables you to provide the IRS with just the information they demand, and nothing more. If you've just been audited I can get you a single year in a single database but it won't be pretty. The only way to get pretty is to create a new database for the new year.
- You'll need to hire help to setup a new database.
- If you're using Enterprise edition will you be able to print out reports cross databases for comparison. Otherwise, you'll have to do that with print-outs, Excel, and Intuit Statement Writer.