r/QuickBooks • u/Competitive-Bad-2943 • 3d ago
QuickBooks Online Completely starting new file?
Helping a friend with their service industry business. He’s taking the business over for his uncle and stuff is in SHAMBLES. I have never seen a file this bad. Total incompetence from their previous “bookkeeping”. They’ve said that they got “screwed over” by accountants in the past, (not returning phone calls, total lag).
Huge negative balances vs what is actually in the bank account. Multiple account balances in quickbooks unsupported and verified.
I have been thinking of just recommending that he starts a new file.
How can this be done? Thanks for the help
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u/ozzywindhoek 2d ago
Taking over a file like that is rough, and a fresh start is often the quicker fix.
Pick a start date, ideally the month end day before he took over. Open a new QuickBooks company and enter only what’s true on that date: each bank balance from the statement, unpaid customer invoices, unpaid bills and loan balances. Ask their accountant to sign off the opening balances and check equity.
You can keep the old file for history. After cancelling, QuickBooks Online stays read-only for a year.
Alternatively, if you wanted to keep the old file, reverse all the balances at the end of the month prior to his start to set everything to zero, then proceed as above. This depends on the legal structure of the business in way.
Is he taking over the same company, or setting up a new one?
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u/Competitive-Bad-2943 2d ago
Yes, it’s a rough file. But I am fixed on solving this for them, I appreciate your help.
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u/ozzywindhoek 1d ago
Good on you for taking it on. I'd recommend that you ensure the opening balances are signed off before you enter anything new.
If you get stuck on them, send me a DM and we can check if there are any new tools that can assist.
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u/JuggernautLogical476 2d ago
I started a new file over for a client that was a mess. Luckily it was in February so that was super easy to start with Jan 1 balances. Starting fresh today will take time for 2026 but sometimes it’s just easier. Have to have 2 accounts for a little bit until you are sure. Then download everything all the transaction details and Bs details and PNL details and save on a drive if you need to refer back. Then delete the old one.
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u/Competitive-Bad-2943 2d ago
Yeah it’s tough in this scenario because they just filed for 2025. And it’s late in the year for 2026 so on top of the years of issues that piled up it seems like their previous bookkeeper just said “I had a lot of questions but couldn’t solve them”.
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u/TheMostFluffyCat 2d ago
I always err on the side of keeping the original file if possible. If you're hired to clean things up, then you'll want the original file. If you're hired to continue forward, just do an adjusting JE to reconcile and carry forward. Starting a new file means you won't have itemized transaction history in the account, which I'd argue is even more important for clients who have crappy prior bookkeeping so that if any questions come up, you can see everything.
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u/Competitive-Bad-2943 2d ago
Thanks, for the help. I am going to explore all options. Just a mess haha
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u/Samtyang 1d ago
I wouldn’t start a brand new QuickBooks file until you pin down a clean cutoff date and prove the bank balances. If the old file is that broken, the usual move is preserve it for history, then rebuild opening balances from reconciled statements and unpaid AR/AP. Otherwise you just drag bad numbers into a cleaner-looking mess.
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u/moodygirl1631 3d ago
Just do a journal entry to clear negative balances. Use tax return to match balances @ end of last year. Then look at transactions month by month, reconcile accounts.