By collecting the
proper information before you begin to set-up your new computerized system
you will save yourself a lot of time and effort. Here are the basic
pieces of information that you will need to set-up your new QuickBooks
general ledger (or, for that matter, any new general ledger system).
If you already have
a hand-posted system, you will probably have most of the data you need
available. If your system is a checkbook and a prayer, then you will have
to make some decisions. Either way, being orderly and systematic is
essential.
Gather
the following information in order to set-up your company on QuickBooks
(or, for that matter, on any computer based accounting system)?
- Company Information
Name
and address
Federal employer identification number
State employer identification number
Type of business
Fiscal year end
- Trial balance for the
period from the first of fiscal year to the date of setup
- Chart of account in use now
You
can select a chart of accounts from QuickBooks or use your existing
chart of accounts. You can either key QuickBooks to use account
numbers or not. I recommend that you use account numbers.
- Your customers' names,
addresses, phone numbers, etc.
Accounts
receivable balances owed to you by customer
- Suppliers' names,
addresses, phone numbers, etc.
Accounts
payable balances owed by you to vendors
- Sales tax information
(Resale number, tax rates, etc.)
- Employees' names,
addresses, etc.
Year
to date payroll and withholdings by employees
Payroll tax rates
- Your budget (if you have
one)
- Inventory (if applicable)
Types
of items being sold
Sales prices by item
Which items are subject to sales tax
Decide what kind of checks you will be using. If you need to order
checks, then you can do that now. Also, consider customer invoices and
any other forms you may need.
You can begin the set-up process now, but remember,
it will take some time and effort. If you don't think you can afford
to take all the time in one chunk, I recommend that you break the task
down into smaller, manageable pieces of time. For instance, suppose
you can only put one hour a day into this conversion. The whole
process may take a week:
- Day #1 - Set up the company and
complete the QuickBooks interview. This will set you up in the system.
- Day #2 - Go through the chart of
accounts. Add accounts not on it that you want and delete accounts
that you don't think you will be using. You should have time to enter
the trial balance in the system.
- Day #3 - Enter your company's
payroll information and bank account information.
- Day #4 - Enter your customer data
and vendor data.
- Day #5 - Complete the set up by
entering any other list of items (such as inventory).
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