Currently, the latest version of QuickBooks is QuickBooks 2014. If you use the previous version of QuickBooks, your company file is set up to work only with that previous version of the program. For example, if you are using QuickBooks 2013 then your company file can only work in that 2013 environment.
Say you plan to update your QuickBooks to 2014 version and use the same 2013 company file, you then have to update your company file to the newer version. Your company file does not change, only the program version you are using changes.
Once you upgrade your company file to a newer version, you can`t open it in the previous version.
Here is how to update your company file:
1. From Main Menu > File > Open or Restore Company to open “Open or Restore Company” dialog box.
2. Choose Open a company file option and click Next.
3. In the “Open a Company” dialog box, select the file you want to open. If the program asks you to login, login with your administrator password.
4. QuickBooks give you information that you must backup your company file before updating it. Click OK.
Read more: Updating a Company File to the Latest QuickBooks Version
Most small businesses use QuickBooks software to help their accounting. It’s such an inexpensive and easy to use tool that can be used in many diverse industries. Like any software, you need to know how to effectively use it to produce accurate financial.
First of all, you need to understand the basic accounting equation, which is Asset = Liabilities + Equity. You also need to understand what Balance Sheet and Income Statement (Profit & Loss) are.
You certainly know what your business structure is which is important in setting up chart of accounts.
Now that you have covered the basics, these are the most common bookkeeping mistakes/inefficiencies that small business owners face:
Accounts are not reconciled.
Even though your bank and credit card company send you statements every month, you still need to reconcile your QuickBooks accounts. The purpose of account reconciliation is, in fact, verifying your QuickBooks balance with your statements. Reconciling bank and credit card accounts is utmost important in producing accurate financial – incorrect financial can lead you to incorrect decision making. Ideally, accounts reconciliations should be done monthly.
You can see this link on how to reconcile bank accounts.
Read more: Common Bookkeeping Errors/Inefficiencies in QuickBooks
When your business carry inventory products, one of the most important reports you need to visit often are inventory reports. QuickBooks provides a few useful inventory reports from Main Menu > Reports > Inventory:
• Inventory Valuation Summary
• Inventory Valuation Detail
• Inventory Stock Status by Item
• Inventory Stock Status by Vendor
We are going to discuss Inventory Valuation and Detail here, while Inventory Stock Status by Item and by Vendor will be presented in the next blog.
We have discussed Inventory Valuation Summary and Detail Reports last week. Here, we are going to show you Inventory Stock Status (by Item & by Vendor) Reports and Inventory Item QuickReport.
Inventory Stock Status by Item
As the name implies, this report shows the amount of your inventory stock by item (product) and guide you if you need to purchase item immediately. Open the report from Main Menu > Reports > Inventory:
A portable company file (.QBM) is a compressed version of a company file containing only financial data. It does not contain:
• Letters, logos, images, and templates files (unlike a backup file .QBB).
• A transaction log file (.TLG) which can be used to restore transaction data if there is damage or loss.
A condensed, thus “portable” company file is much smaller than a company file, normally takes about one-tenth of company file disk space. As such, a portable company file is used to move/send a company file to colleagues, clients, bookkeepers, and accountants via email, flash drive, or other removable storage.
Creating a Portable Company File
1. From Main Menu > File > Create Copy to open Save Copy or Backup dialog box: