This article will help you identify if there is a need to create a new company file to replace your old/existing QuickBooks company file. There are several reasons why we would recommend that you start a new company file.
 
  • QuickBooks runs slowly
    Performance is a valid reason for creating a new company file given that you already tried all the suggestions to improve QuickBooks' performance. However, it is not a valid reason for upgrading to a higher version of QuickBooks. If you are having performance issues in QuickBooks Premier, then you will have performance issues in QuickBooks Enterprise Solutions products.
  • List Limits
    You are approaching the list limits in QuickBooks. QuickBooks Desktop has limits on the number of elements in its lists. If you are approaching these limits, you will need to start a new company file.
  • Data Damage
    Your current company file is beyond repair and you don't have a recent backup that you can restore then you may need to start a new company file. If you are experiencing repeated data damage that is resolved by the Rebuild Data utility or by repeated uploads to Data Services, then you do need to start a new company file.
  • Changing your EIN (US) or CRA Business Number (Canada)
    If you are changing from a Sole Proprietorship to a Corporation and you will have to track taxes (both income and payroll) under both the old EIN/Business Number and the new EIN/Business Number. You cannot do that in a single company file.
  • Combine accounting for multiple companies into one file
    Suppose you have been tracking Division #1, Division #2 and Division #3 in separate company files. For the next fiscal year, you want to track them in one company file using classes. You should create a new file, import lists from the three old files, set up the three divisions as classes and then set up your opening balances.
  • Stop/ Start tracking inventory
    Because of tax implications of changing the way you track inventory, you may want to start a new company file instead of setting up a new set of items in your current company file. You cannot change inventory items to non-inventory part items, and we strongly recommend that you do not change non-inventory part items to inventory items.
 
Note
  1. While no QuickBooks version has a maximum file size, the different tiers of QuickBooks are optimized for files of a certain size.
    • Pro: 10mb-50mb
    • Premier: 50mb-300mb
    • Enterprise: 3000mb and up
  2. Larger QuickBooks company files are prone to more incidents of data damage and performance issues. If you have a very large file, you may want to consider starting a new company file to help avoid any future performance and data damage issues.
  3. When you start a new company file, your historical detail will no longer be in your current file, but it will still be available in your old file. You can export lists, such as customers, vendors, and Chart of Accounts from the old file to the new file, so you will not have to set those up.
  4. Please understand that starting a new company file is a lot of work and it will take a good deal of time. However, starting a new file may also help you avoid future problems and downtime due to performance or data damage issues.
  5. When you decide to create a new company file, in the QuickBooks menu bar, choose File > New Company. QuickBooks opens a wizard that guides you through setting up your new company. You will be able to export lists from your old file and import them into your new file, so you do not need to set up any lists in the wizard.
  6. If you use inventory and need to start a new file, consider taking a physical inventory so that your new file will have correct Quantity on Hand.
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