How Do I Upgrade to QuickBooks 2013?
Posted on February 28, 2013 byIt is the goal of this column to answer questions about QuickBooks and how it is used in the real estate investing arena. Submit your QuickBooks questions to me at Karen@SmallBusinessAdvisor.biz to get them answered here.
Q: I just purchased QuickBooks Pro 2013 and have my old file in my computer from an earlier version of QuickBooks. Do I have to start all over or can I upgrade my old file to 2013?
A: You can upgrade to the new version of QuickBooks once you have installed 2013. Do not remove your old version of QuickBooks and do not allow the new version to “overwrite” it – install it in its own folder separate from the previous version. When the 2013 has been installed you will want to “Open a company” – follow the wizard to direct it to where your old version of QuickBooks “working” (QBW) file is in your computer. The window should be asking you to open the file. When you click on open it will progress until it comes up with a window that tells you the file must upgrade – it will want to back up your old file first – this is why you still need the old version. Do the back up and then follow the wizard. If you have issues with this process or are not comfortable doing this we are only a phone call away to set a time to do your upgrade.
Q: I have received a substantial amount of pre-payment for the rehab on a client’s property. How do I set this up in QuickBooks so I know I can keep track of how much is left?
A: One way to do this is to set up a liability account and fund it with the pre-payment – when it is deposited to the bank instead of an income account you would apply it to this liability account. Then every time you “invoice” the client for work done you would “draw” from this liability account to clear the invoice.
Q: I pay my vendors on a twice a month basis. When I look at the Enter Bills and Pay Bills process I feel like this is a lot more work for the little bit I have to handle. Is there an easier way to do this?
A: Yes, if you are paying the invoices on a very quick turn-around then you can just write the check in QuickBooks and expense it at that point. Once your business grows to a point where you either have many more invoices to keep track of or you start paying invoices on a 30-45 day basis you will want to do the Enter Bill/Bill Pay process so you can keep an accurate account of who and how much money you owe out.
Karen Bershad is The Small Business Advisor. Most small business owners have a challenge handling all the different areas of running a business. The accounting can be a challenge, particularly if the software seems overwhelming. The Small Business Advisor is what you may need to get you to the next level of your business. We work at your office or provide off site assistance in getting things under control by providing a wide variety of services that are specifically for the small business.
