Safeguard Your Financial Reports Before QuickBooks Account Normalization Follow
Introduction
Before you start normalizing your chart of accounts in QuickBooks, it's crucial to prepare and save essential financial reports. This step ensures you have a record of your financial data before making any changes, helping you fix any issues that might arise.
Why Normalize?
Normalizing your chart of accounts keeps your financial data accurate and organized according to your business needs. Before you begin, generate and save reports to have a comprehensive record of your financial data.
Step 1: Run Key Financial Reports
Generate the following reports from QuickBooks:
- Balance Sheet
- Profit and Loss (P&L) Statement
- General Ledger
These reports provide a snapshot of your financial health and transaction history.
Step 2: Setting the Date Range
Set the date range for each report to cover the last seven complete fiscal years plus the current fiscal year. This ensures you have a detailed record over a significant period.
Step 3: Generating the Reports
- Open QuickBooks and go to the Report Center.
- For the Balance Sheet and P&L reports, select each report to run.
- Adjust the date range to the last seven complete fiscal years plus the current fiscal year.
- Display columns by year for easier comparison.
- For the General Ledger report, run it one fiscal year at a time due to its size.
- Export each yearly report to Excel for better handling and storage.
Step 4: Saving the Reports
- Balance Sheet and P&L Statements: Save in both Excel and PDF formats for accessibility and edit-ability.
- General Ledger Reports: Export only in Excel, naming each file by the year it covers (e.g., General Ledger 2021, General Ledger 2022).
Conclusion
Following these steps to save your financial reports before normalizing your chart of accounts in QuickBooks is essential. It ensures you have a detailed historical record to verify the accuracy of your changes and correct any errors, maintaining the integrity of your financial data.
Comments
0 comments
Article is closed for comments.