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Verifying Your QuickBooks Data



QuickBooks files hiccup now and then. Perhaps you worked through a spectacular thunderstorm and a power spike zapped a bit of your company file, say. Fortunately, QuickBooks’ has a feature that can scan your company files and tell you whether the file has suffered any damage: the Verify Data utility. It’s a good idea to run the utility every so often, just to make sure that your company file is OK.


How often you run this utility depends on how hard you work your company file, but monthly verifications are in order for most companies. The utility is indispensable, though, if you notice any of the following symptoms:

Invalid protection faults or fatal errors. If these types of errors appear in message boxes when you run QuickBooks, you almost certainly have a damaged data file.

Discrepancies on reports. Your Balance Sheet doesn’t show all your accounts, or transactions show negative values instead of positive ones.

Tip: If the totals in your reports don’t seem right, first check that the report dates are correct and that you’re using the right cash or accrual accounting setting.

Missing transactions and names. Transactions or names that you’re sure you entered don’t appear in reports or lists.   

Running the Verify Data Utility
Whether you’re just giving your company file a checkup or you see signs of problems, the Verify Data utility is easy to use. To run it, choose FileUtilitiesVerify Data. (If any windows are open, click OK to give QuickBooks permission to close them.) When the utility is done working, you’ll have one of two possible outcomes:

• If QuickBooks displays a message saying that it detected no problems with your data, congratulations—your file is healthy!

• If you see the message “Your data has lost integrity,” your company file has some problems. QuickBooks displays instructions for running the Rebuild Data utility, which tries to repair the damage. Read on to learn what to do.


Reviewing Problems
If your company file has “lost integrity,” the Verify Data utility writes down any errors it finds in a file named QBWIN.log. Before you run the Rebuild Data utility, it’s a good idea to take a look at this log file and review your company file’s problems. However, you’ll need a map to find the log file. Fortunately, you can open the file with the Windows Notepad program. Here’s how:

1. In Windows Explorer, go to the folder where QuickBooks stores QBWIN.log. In Windows 7, it’s C:\Users\<your user name>\AppData\Local\Intuit\ Quick- Books\log\21.0. In Windows XP, it’s C:\Documents and Settings\<your user name>\Local Settings\ Application Data\Intuit\QuickBooks\log\21.0.

Note: Windows initially hides application-data folders like the log folder you’re looking for here. If you don’t see the folder, in the Windows Explorer window’s menu bar, choose Organize“Folder and search options” (in Windows 7) or ToolsFolder Options (in Windows XP). Then click the View tab. In the “Advanced settings” list, under “Hidden files and folders”, select “Show hidden files, folders, and drives”.

2. To open the log file, double-click its name. The file opens in Windows Notepad, and you can use Notepad commands to move around the file. (If the file doesn’t open, launch Notepad, choose FileOpen, and then double-click the QBWIN.log filename.) The most recent addition to the file is at the very end. When you verify data, QuickBooks automatically renames the previous QBWIN.log file to QBWIN.log.old1 so that the QBWIN.log file contains information for only the most recent verification. QuickBooks also renames other old files, changing QBWIN.log.old1 to QBWIN.log.old2, and so on.   â•‰â•‰â•‰â•‰Cleaning Up Data


Running the Rebuild Data Utility
If your file is damaged, QuickBooks’ Rebuild Data utility tries to fix it. Unfortunately, it can also make matters worse. Intuit recommends that you run the Rebuild Data utility only if an Intuit technical support person tells you to. Always make a backup of your company file before trying to rebuild it. Take extra care to prevent overwriting your previous backups—those files might be your only salvation if the rebuild doesn’t work.

To run the Rebuild Data utility, choose FileUtilitiesRebuild Data. When the utility is done working, close your company file and reopen it; this refreshes the lists in your data file so you can see if the problems are gone. Then, run the Verify Data utility once more to see if any damage remains. If this second Verify Data run still shows errors, restore a recent backup of your company file.




Cleaning Up Data
As you add transactions and build lists in QuickBooks, your company file gets larger. Although larger company files aren’t too big of a hassle, you might be alarmed when your company file reaches hundreds of megabytes. Plus, if you use CDs to back up your file, your backups will start to take up too much valuable time and storage space. Enter the Clean Up Company Data command, which creates an archive file and deletes obsolete list items and transactions prior to the date you choose.

Warning: The Clean Up Company Data wizard removes the audit trail information for transactions that the cleanup deletes. So if you’re watching transaction activity, print an Audit Trail report first, and, as always, back up your company file.

When QuickBooks cleans up data, it replaces the detailed transactions prior to your specified date with general journal entries that summarize the deleted transactions by month. As a result, some of your financial details are no longer available for running reports, filing taxes, and other accounting activities. Still, there are a couple of compelling reasons to do a data cleanup:

You no longer refer to old transactions. If you’ve used QuickBooks for years, you probably don’t need the finer details from eight or more years ago. And if you ever do need details from the past, you can open an archive file to run reports.

You have obsolete list items.
Cleaning up a company file can remove list items that you don’t use, like customers you no longer sell to. This option comes in handy if you’re nearing the limit on the number of names.


An archive file created by the Clean Up wizard is a regular company file that contains all of your transactions, but it’s read-only, meaning you can’t add data to it or edit it, so you can’t inadvertently enter new transactions. If QuickBooks runs into trouble cleaning up your file, it automatically pulls transaction details from the archive file. An archive copy is not a backup file, so you can’t use it with the Restore command to replace a corrupt company file. So even if you create an archive copy, you still need to back up your data. If you decide to clean up your company file, here’s what you can expect to find afterward:

General journal entries summarize deleted transactions. QuickBooks replaces all the deleted transactions that happened during each month with one general journal entry. For example, instead of 20 separate invoices for the month of June, you’ll see one journal entry transaction with the total income for June for each income account.

Inventory adjustments reflect the average cost of items. QuickBooks removes inventory transactions that are complete, such as invoices that have been paid in full. When QuickBooks finds an inventory transaction that it can’t condense (perhaps because the payment is outstanding), it keeps all the inventory transactions from that date forward. Because inventory transactions use the average cost of inventory items, QuickBooks also adds an inventory adjustment to set the average cost of the items as of that date.

Reports might not include the details you want. You can still generate summary reports using condensed data because QuickBooks can incorporate the info in the monthly general journal entries. Likewise, sales tax reports still include data about your sales tax liabilities. But detailed reports won’t include transaction details before the cutoff date you choose for condensing the file . And cash accounting reports won’t be accurate because they need the dates for detailed transactions.

You still have payroll info for the current year. QuickBooks keeps payroll transactions for the current year and the previous year regardless of the cutoff date you choose for condensing the file.

QuickBooks deletes estimates for closed jobs. If a job has any status other than Closed, QuickBooks keeps the estimates for that job.

QuickBooks retains time data that you haven’t billed. QuickBooks keeps any time you’ve tracked that’s billable but that you haven’t yet billed to your customers. Also, if you pay employees by the time they work, QuickBooks keeps data about time for which you haven’t compensated your employees.   â•‰â•‰â•‰â•‰Cleaning Up Data

Running the Clean Up Company File Utility
 If you’re ready to clean up your company file, first consider when to do it. The cleaning process can take several hours for a large company file, and a slow computer or a small amount of memory exacerbates the problem. You might want to clean your company file at the end of a workday so it can run overnight. Here’s how to condense a company file:

1. Choose FileUtilitiesClean Up Company Data. If you’ve created budgets in QuickBooks, you’ll see a message that the cleanup might remove budget data. You can export your budget before you clean up your data and then import the budget back into your company file after cleanup. If the loss of some budget data doesn’t scare you, click Yes. The Clean Up Company Data dialog box opens.

2. Select the “Remove transactions as of a specific date” option. This option deletes old transactions and things like unused accounts and items. The “Remove ALL transactions” option removes transactions but keeps your preferences, lists, and service subscriptions—such as payroll—intact. You won’t use this option often, but it comes in handy if, for example, you want to offer your clients a template company file that contains typical list entries, but without any transactions.

3. In the “Remove closed transactions on or before” box, type or select the ending date for the period you want to condense, and then click Next. If you use a QuickBooks Payroll Service you can’t clean up data for the current year. Besides, QuickBooks won’t let you clean up transactions that are later than the closing date on your company file. Choosing a date at least two years in the past ensures that you can compare detailed transactions for the current year and the previous year. For example, if it’s March 1, 2011, consider using December 31, 2009 or earlier as your cutoff date.

4. On the “Select Additional Criteria for Removing Transactions” screen, turn on the appropriate checkboxes if you want to remove transactions that the clean-up process would normally leave alone, and then click Next. Figure 7-8 shows your choices. Before you turn on these checkboxes, carefully review your company file to make sure you won’t delete transactions that you want to keep.

5. On the “Select Unused List Items To Remove” screen, turn on the appropriate checkboxes if you want QuickBooks to delete list items no longer referenced in the cleaned up file. Then click Next. Accounts, customers, vendors, other names, and invoice items might become orphans when you delete old transactions they’re linked to. You can neaten your file by removing these list items, which now have no links to the transactions that still remain. But keep in mind that you might still work with one of these vendors or customers later.   Cleaning Up After Deleting Files

Figure 7-8:╇ The Clean Up Company File utility includes settings to remove transactions that it would normally leave alone—like transactions marked “To be printed” that you don’t need to print. If you have very old, unreconciled transactions, invoices, or estimates marked “To be sent,” or transactions with unreimbursed costs, turn on these checkboxes to remove them during the cleanup.

If seeing all the To Do notes you’ve completed gives you a sense of accomplishment, leave the “‘Done’ To Do notes” checkbox turned off. To keep only To Do notes that you haven’t completed, turn this checkbox on.

6. On the “Proceed with cleanup?” screen, click Begin Cleanup.
 If you’re not sure of the options you chose, or if you have any doubts about cleaning up your file, click Back to return to a previous screen, or click Cancel to exit without running the cleanup.

When you click Begin Cleanup, QuickBooks tells you that it’ll back up your file before condensing the transactions. Click OK when you’re ready to back up and clean up your data. QuickBooks first creates a backup file of your data. Then, it creates the archive file (a QuickBooks company file, not a backup file;) in the same folder as your original company file. The filename for the archive copy has the format Archive Copy mm-dd-yyyy <company name>.qbw, where “mm” represents the month, “dd” the day, and “yyyy” the year that you created the file.

As QuickBooks proceeds with the cleanup process, it scans your data three times. You might see dialog boxes wink on and off in rapid succession; then again, you might not see anything happen for a while if your file is large. But if your hard disk is working, the cleanup process is still in progress. Be patient and resist clicking Cancel. When the cleanup is complete, QuickBooks displays a message telling you so.


Cleaning Up After Deleting Files
 QuickBooks doesn’t give you a command for deleting company files. If you want to get rid of a practice file you no longer use, you can easily delete the file right in Windows. But you’ll still have some housekeeping to do to remove all references to that file from QuickBooks.

A deleted company file will still appear in QuickBooks’ the list of previously opened files but the program won’t be able to find the file if you choose that entry. Here’s how you eliminate those stale entries:

1. In Windows Explorer, navigate to the folder where your QuickBooks company files are stored, and then right-click the company file you want to delete. What you look for depends on how you’ve set up your folder view. If your folder shows the full names of your files, look for a file with a .qbw file extension, such as DoubleTrouble, Inc.qbw. If the folder includes a Name column and a Type column, the type you want is QuickBooks Company File.

Files with .qbx extensions represent accountant’s copies. Files with .qbb file extensions are backup copies of your company files. If you delete the company file, go ahead and delete the backup and accountant’s copies as well.

2. On the shortcut menu, choose Delete.
Windows displays the Confirm File Delete message box. Click Yes to move the file to the Recycle Bin. If you have second thoughts, click No to keep the file.

3. In QuickBooks, to eliminate the deleted company file from the list you see when you choose FileOpen Previous Company, open another company file by choosing the filename for that company on the Open Previous Company menu. Alternatively, if QuickBooks’ displays the No Company Open window, open the company file that you typically work with by double-clicking it.

4. To clear out old files in the previously opened file list, reset the number of companies displayed in the No Company Open window by choosing FileOpen Previous Company“Set number of previous companies”. In the “How many companies do you want to list (1 to 20)?” box, type 1 and then click OK. Then, if you choose FileOpen Previous Company again, you’ll notice that only one company appears—the company file you opened last.

Note: In the No Company Open window, the “Select a company that you’ve previously opened and click Open” list still shows all the company files you’ve opened recently.

5. Now that you’ve removed the deleted company file from the drop-down menu you can reset the number of previously opened companies. With a company file open, choose File Open Previous Company“Set number of previous companies”.
In the “How many companies do you want to list (1 to 20)?” box, type the number of companies you’d like to see in the list, and then click OK. As you open different company files, QuickBooks lists these files in the No Company Open window and on the Open Previous Company menu.    

 

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