QuickBooks Condense Data

What is the QuickBooks Condense Data utility?

QuickBooks has a unique utility called the QuickBooks condense data utility. This utility is a tool that reduces or condenses the size of a bloated QuickBooks file, which is one of the factors that contributes to the overall inefficiency of operating QuickBooks. It will delete and summarize any old transactions that have been closed, as well as make a backup copy of your data file for archive purposes. Having said that, that is not the only reason why you require the utility.

The following is a list of additional arguments to support this proposition:

• When you import the Company File from Quick Books Desktop into Quick Books Online.
• If you are getting dangerously close to reaching an inventory list limit.
• In the event that you have upgraded all of the components that make up your system.
• if your accountant or financial adviser has considered a variety of different options and has decided to simplify the information instead.

What should be taken into consideration before condensing a Company File in QuickBooks?

Before you can condense a Company File in QuickBooks, you will need to investigate a few different components first. Take a look at the following points:

Action That Is Irreversible in Its Consequences. You should not rush into making the decision to condense your company file since you will not be able to undo the action once it has been performed. Therefore, you should only condense the business file in QuickBooks when you have an exceptionally high need for the feature.

• Transactions Related to Payroll (If the data is before the last day of the year or unreviewed W2 of an employee).
• The following: invoices, payments, credit notes, and cheques for refunds (If not linked to each other).
• Payments made using Undeposited Funds (If not deposited to a bank account).
• Bills, checks for the payment of bills, and credits for bills (If not linked to each other).
• Invoice cost estimates (non-posting items cannot be consolidated into posting transactions)
• Unpaid Sales Tax in the column labeled Pay Sales Tax (They are open transactions).
• Transactions that are connected to a transaction that cannot be condensed.

It also has an effect on certain reports, but just for the condensed time period. Take a look:

How to use QuickBooks File Condense Utility

1. Launch QuickBooks and navigate to the File tab.
2. Condense your data by going to the Utilities menu and selecting the option there.
3. Select the option that reads Transactions before a specified date, and then enter the date that is relevant.
4. Mark the box as checked, and then click the Next button.
5. Click the button labeled Summarize inventory transactions (preferred), then choose the method through which your inventory will be condensed, and finally click the button labeled Next.
6. Click the Next button once you have removed the transaction groups as desired.
7. Now Click on Begin Condense. It will simply run the report at this point and will not begin condensing the data at this time.
   

Now, prepare your company file for the condensing process by going through the procedures below:

You may begin utilizing the QuickBooks File Condense application at this time without any more preparation. However, you will need to be patient because the condensing process might take some time depending on the size of the file you are working with and the speed of your machine. To finish the task in a shorter amount of time, close any other apps that could be running in the background and disregard any messages that Windows might display in relation to QuickBooks.

Additionally, if you use QuickBooks in multi-user mode, you should only run the condense tool on the computer that you use to control all of the workstations in the network. This is because running the program on any other computer might potentially corrupt the data.

In the end, you will need to either print the following data or save it as a PDF so that you may examine it alongside the condensed data and determine whether or not all of the information has been preserved.

• Profit and loss calculated using the accrual method, for each and every date.
  
• The Balance Sheet will be prepared using the accrual method for all of the dates.
  
• Financial statements depicting cash flow.
  
• Details on the A/R and A/P aging balances for every date
  
• Unless your accountant or financial consultant recommends differently, compile the reports.

You may begin utilizing the QuickBooks File Condense application at this time without any more preparation. However, you will need to be patient because the condensing process might take some time depending on the size of the file you are working with and the speed of your machine. To finish the task in a shorter amount of time, close any other apps that could be running in the background and disregard any messages that Windows might display in relation to QuickBooks. Additionally, if you use QuickBooks in multi-user mode, you should only run the condense tool on the computer that you use to control all of the workstations in the network. This is because running the program on any other computer might potentially corrupt the data.

At long last, put the QuickBooks condense data Utility through its paces by carrying out the following steps:

In order to condense a big QuickBooks file using QuickBooks for Mac, you must first shut all of the windows associated with QuickBooks and proceed through the steps below in order:

The process of condensing a QuickBooks Desktop file has been modernized and improved so that it may be finished in a much shorter amount of time when compared to the method that was previously used. In addition to this, it gives the user the choice to delete the audit trail without erasing the individual transactions by utilizing a combined journal entry that encompasses all of the data up to the chosen date. You can get access to the tool by following the instructions that are outlined here:

• Launch QuickBooks, then go to the tab labeled "File."
  
• After selecting Utilities from the menu, choose the Condense Data option.
  
• If you select the new choice, it will display the estimated size reduction that will be applied to your QuickBooks Company File in the same manner as the picture that has been provided. You also have the option of using the more conventional approach.
  
• Just move on to the following step.
  
• When the procedure is finished, a window will appear, alerting you of the overall size reduction, and it will also specify the backup location in that window.

• Restore the most recent version of your backup file.
  
• Make a note of the transactions that were corrupted, and then restart the Condense Data process after the transactions have been fixed.
  
• Make a fresh copy of the file titled "Company."