Cleanup guide
Fix the Existing File or Start a New One
Most files are worth repairing. A few are not. The decision comes down to what the history in the old file is worth against what it would cost to make it trustworthy.
When repairing makes sense
- The file has years of customer, vendor and invoice history you use
- The early years agree with the returns filed, and the problems are recent
- The errors are of a few known kinds, such as duplicates or unmatched transfers
- Open invoices and bills in the file are real and being collected or paid
- Payroll or inventory is run inside the file
When a new file is the better route
- Nothing in the file has ever been reconciled, in any year
- The file mixes more than one business, or the business and the household
- The accounting basis or entity type was set up wrong from the start
- There are so many duplicates and voids that each transaction would have to be checked individually
- You bought the assets of a business and received the seller’s file
- The file is damaged, or belongs to a subscription you cannot recover
A new file is not a way to make old problems disappear. The past still has to be recorded correctly, either in the new file or as documented opening balances.
How opening balances are set
Whichever route is chosen, the books have to begin from figures that can be supported. For an entity that files a balance sheet with its return, those are the balances on the last filed return. For others, they are built from what can be verified on the start date:
- Bank and card balances, from the statements
- Loan balances, from the lenders
- Money customers owed and bills unpaid on that date
- Equipment, vehicles and property, with what has been depreciated so far
- Payroll and sales tax owed on that date
- Owner equity, which is what is left
Dumping an unexplained difference into an opening balance account is the usual shortcut, and it is the reason so many files have a balance there that nobody can explain.
What carries over to a new file
Customer and vendor lists, the chart of accounts once tidied, items and price lists, and open invoices and bills can all be brought across. Detailed history stays in the old file, which is kept as an archive and not deleted.
See QuickBooks cleanup for how a repair is carried out.
Frequently asked questions
Is it faster to start a new bookkeeping file than to fix the old one?
Sometimes. If nothing in the old file was ever reconciled, rebuilding from statements in a clean file is often quicker than checking every existing entry. If only recent periods are wrong, repair is quicker. We look at the file before recommending either.
If I start a new file, do the old years still have to be done?
Any year with a return outstanding still needs books, whichever file they sit in. Years already filed and not in question can be represented by opening balances taken from the last return.
Should I delete my old file?
No. Keep it as an archive. It holds history that supports filed returns, and it may be needed if a past year is ever questioned.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related situations and guides
A QuickBooks file nobody trusts
Unreconciled accounts, duplicates, Undeposited Funds, bank-feed guesses. What gets repaired and in what order.
Learn moreNever had real books
A spreadsheet, a shoebox or the bank balance. Building a first set of books, including past years.
Learn moreSelling or buying a business
Books that have to survive a buyer’s review, or a seller’s mess you just inherited.
Learn moreHow a cleanup works, step by step
The seven stages from first call to current books, and what each needs from you.
Learn moreCleanup Planner
Eight questions, then a plan: what comes first, what to gather, and which guides apply.
Part of Messy Books Help, alongside our catch-up bookkeeping service.
Tell us what you need
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Send us the mess. We will send back a plan.
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