I have a new client who's prior cpa insisted that she needed a new QB file when she incorporated her sole proprietorship. Is this common practice? I don't see the necessity. Why not just make a few journal entries to recognize stock and beginning capital? How would you do this and what entries would be necessary?
Yes, CPA's know that prior periods can (accidently) change, and thus explains the insisting.Also, the fixed assets will come in at a new value etc..... Its easy to start a new company so there is no reason not to, all the lists can be imported in (make sure to inactive old accounts) and they can start with a cleaner file.
You would only need the begining entries to start the new company. Usually the beining entries are provided by the CPA, and this can take time, but in QuickBooks you can still use the new file until the begining numbers are posted.
I also have all my clients start new bank accounts..there should be a definite end and a beginning from the sole prop to the corporation.
Good luck!
Melissa
