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MHA11205
September 5, 2022
Question

Replacing COA in QB Desktop company

  • September 5, 2022
  • 1 reply
  • 0 views

I am the volunteer bookkeeper for a small non-profit.  Out chart of accounts (less than 50 accounts) has become a bit messy.  The account numbers are not in an order that works for our needs.  We also would prefer 4 digits, rather than 5.  We have developed a new chart in Excel that works well for our needs - management reporting and government grant reporting.  

 

We are also changing our FY. that appears to be an easy change in an existing company, resulting in a short year. 

my question is how do I handle these changes in QB Desktop? 
1.  Create a new company and build a COS from scratch?  (We know that we have to look to the “old” accounts for history)

2.  Edit each of our existing accounts to change the account number as well as the account name? Then make all of the old accounts “inactive”.? If I add each BS account with a beginning balance, how does that impact reporting since there are now two accounts for the same purpose - especially retained earnings?


Because we are all volunteers and role changes happen, I want to try to ensure that a future bookkeeper is not posting posting anything to one of the old account numbers.

1 reply

JenoP
JenoP
September 6, 2022

I'd be glad to join you here and help with your questions about managing your list of accounts, MHA11205.

 

The Chart of Accounts in QuickBooks is highly customizable. You can either edit the existing ones or import a new list into a new company file. I'll share the steps for both options so you can test them and see what works best for you. 

 

If you want to create a new file, follow these steps if you want to create a new file and start from scratch:

 

  1. Go to the File menu and select New company. 
  2. Click Express Start and type all the required information.
  3. Select Create company. 

 

After that, import the Excel file for the list of accounts that you've created. Here's how:

 

  1. Go to the List menu and Chart of Accounts.
  2. Click the drop-down list for Account at the bottom, then choose Import from Excel.
  3. Select Browse to and select the Excel file you want to import.
  4. Click Open and follow the steps on how to map your accounts. Mapping your accounts tell QuickBooks how to import the data from your Excel sheet. The column headings in QuickBooks may be different from your Excel, so you’d need to match them.
  5. Type in a mapping name.
    1. Choose Account as Import type. Then, match the information under QuickBooks with the column headings in your Excel sheet.
    2. Click Save and select Import. 

 

Here's an article about this option for more details: Import or Export MS Excel Files.

 

You can also follow these steps if you want to edit or make existing accounts inactive if you want to keep the same company file.

 

  1. Go to the List menu and open your Chart of Accounts.
  2. Select the account that you want to edit, then right-click on it and select Edit account.
  3. Make the necessary changes to their names or account number and make it four instead of five digits.
  4. You can also check the box for Account is inactive if you wish to inactivate it.
  5. Click Save and close.

 

Please know that inactive accounts will still show up in your reports. You can create journal entries to zero them out or move amounts from one account to another to make sure they're not duplicated in you financial reports. 

 

Let me share these articles for additional details:

 

 

You can try both steps to see what works best for you. Please don't hesitate to reply to this thread if you have follow-up questions. 

A
agwellscpa
May 16, 2023

Hi, I am an accountant with client using QB Desktop, and I need to make changes to his Chart of Accounts (change accounts and account types) - my question is what is the best way for him to send me his QB data file, I make those changes, and send the file back to him? Should we use a backup copy, or portable copy of the data file? 

Angelyn_T
Angelyn_T
May 16, 2023

My pleasure to have you in this thread today, CPA. Let me share some information on how to get your client's QuickBooks Desktop (QBDT) file to modify his Chart of Accounts (COA).

 

Great news! Your client can either create a file to put on a USB/online hosting service or use the Accountant's Copy File Transfer Service to send a file through the web. Before that, disable any advanced inventory features for QBDT Enterprise only.

 

To create a file to place it on a USB:

 

  1. Go to the File menu, then Send Company File.
  2. Hover over Accountant's Copy and then hover over Client Activities.
  3. Select Save File and then Next.
  4. Click on Accountant's Copy, then Next.
  5. Enter the dividing date
  6. Tap Next.

 

After that, your client will now have an Accountant's Copy of his file with the .qbx extension. He can put the file on a USB, attach it to an email, or share it through a cloud service like Box.

 

On the other hand, here's how to send a file through the Accountant's Copy File Service:

 

  1. Click on Send Company File from the File menu.
  2. Hover over Accountant's Copy, then Client Activities.
  3. Tap on Send to Accountant and then Next.
  4. Choose Accountant's Copy and then Next.
  5. Enter the dividing date. Then select Next.
  6. Enter your and your accountant's email addresses.
  7. Create a file password for the file. Your accountant needs this to open it.
  8. Hit Send.

 

I'm also adding this article for more reference: Create an Accountant's Copy of your company file in QuickBooks Desktop.

 

When you receive your client's accountant’s copy (.QBX), you have to convert it to an accountant’s copy working file (.QBA) so you can make changes to their books. You can run through the resources from this link as your reference: Use an Accountant's Copy working file in QuickBooks Desktop.

 

Please let me know if you have follow-up questions while working with your client's file. I'm always here to help. Have a good one!

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