Most Efficient Way of Using QuickBooks Condense Data Utility

If you want to know a proper way to condense a QuickBooks Company file with all steps and have questions in your mind that why should we condense data, would it make any effect on the company file, Is it time taking process or can we lose data after condensing a file then here is the answer of all these questions, Read the complete Article.

QuickBooks Condense Data Utility- At A Glance

The QuickBooks Condense Data Utility is the feature which helps to reduce the file size of QB Company file. This feature helps smooth running your QuickBooks company file.

What does condensing the QuickBooks File do?

As we understand from the word condense that is to make more compact or shrink the volume of any object. Once we condense Data It clears the audit trial but keeps all exact transaction with details. This feature of QuickBooks makes the company data file smaller by summarizing many old closed and detailed transaction into journal entries and remove all unnecessary elements from lists without deleting the important data.

Importance of file optimization

Most of the small businesses based out of the USA are using one particular software for accounting and bookkeeping. That sums up nearly 80% of the market share. Now the point is, in these days so many trafficking of data is something actually more than one couldn’t or wouldn’t be able handle. There are always fears like mishandling data, loss or simply file corruption.

Why should we need to condense data in QuickBooks

If any Organization is big or the company file is many years old then it is very common to exceed over 1GB.

• If you keep large files sometimes it becomes slower and takes longer time to load or to do any other important work in the file. At that time, we need to use condense Data Utility to fix company file performance.
• If you want to import your QuickBooks Desktop company file ( QBDT ) to QuickBooks Online ( QBO )
• If you closing to an inventory list limit

How long does it take to condense a QuickBooks company file

Condensing a QuickBooks file is very simple, faster and easy. It depends on the File size (transactions etc.) as well as the computer speed. If the file size is very big (1 GB-5GB) then sometimes it takes about an hour but not completely sure that it will take that much time. As time is not confirmed the best thing is to wait for it without any kind of interruption in the process.

Can we lose some data after condensing a file

Condensing a file does not mean it will delete any primary data.  However, in QuickBooks there is available options whether you just want to shrink the file size or almost want to create an empty copy. If you choose to remove data during the condensing process then QuickBooks cannot locate it.

Do you know some curious Information about QuickBooks Error H202?

Undoubtedly, QuickBooks is the best software for all business-related queries. Sometimes users face an unwanted error that can affect the ongoing task of the program. QuickBooks Error Code H202 is one of those errors, which occurs when users try to switch into multi-user mode. To resolve this problematic issue, users must run QuickBooks Install Diagnostic Tool.

Things to acknowledge before condensing a Company File

We must have known few important things before condensing a company file

• As this action cannot be reversed so decision should have taken only if you need it utmost
• Sometimes few inventory items and open transactions may not be condensed, thus it will not reduce the company file size.
• Condensing a Data is not the option to repair the company file, sometimes it works but it is not all-time solution. To fix the damage file either restore the backup or portable file or just create a fresh file.

Let us see in below list what transaction cannot be removed

1. Payroll Transactions
2. Invoices and payments
3. Credit Memos
4. Refund checks (should not have linked to each other)
5. Undeposited Funds payments (If it is not deposited to a bank account)
6. Bills, Bill Credits and Bill payment checks
7. Estimates of Invoices
8. Unpaid sales Tax in pay sales tax column as these are open transaction
9. If transactions are linked to a non-condensable transaction

There are few reports too that affects during condense period

• Report based on Accounts and Items
• Reports based on cash into income or cash out to expenses
• Audit trial report
• A/R collections report
• Reconciliation
• Class filtered Reports
• Reports of sales and purchase in details
• Reports on sales tax liability

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How to Condense QuickBooks Data?

Follow Below mentioned steps to condense data after closing all the open QuickBooks windows

1. Open QuickBooks
2. Go to File
3. Now Click on Utilities
4. In Utilities click on Condense Data
5. Now Options will appear on the screen
6. Now select the ‘ Transaction before specific date’ and select the correct date.
7. Check mark on the desired optional box and then click on next
8. Select option Summarize inventory transactions’ which is recommended and click next
9. select a method how your inventory will be condensed and click on Next
10. Now select Transactions groups that needs to be deleted.
11. Now click on ‘ Begin Condense ‘. It will start condensing the QuickBooks File.

Note- There are following things which we need to do before condensing the data                            

• Remove the closing date of your data file by the following steps:
  1. Open QuickBooks and select the Edit
  2. Click on Preferences, and then go to the Company Preferences
  3. Click on the Set/Date Password option and delete the date given in the box.
  4. Hit OK.
• Edit the transactions that are entered before your company starting date as you cannot fix them afterward. To find them, run the Profit and Loss and Balance Sheet utilities.

• 1. Under Chart of Accounts, re-sort the lists.
  2. Don’t forget to run  Rebuild and Verify Data Utility for no data damage
  3. Create a backup of your company file and copy it to a secure location or the default location of company file.
  4. At the very end you would need to print or save the following data as PDFs to compare them with the condensed data and check if all the information is still available and match.

• • • Accrual-based Profit and Loss for all the dates.
    • Accrual-based Balance Sheet for all the dates.
    • Cash Flow statements.
    • A/R and A/P Aging Detail for all the dates.
    • Reports recommended by your accountant or advisor otherwise.

Now, everything is all set to use the QuickBooks data condense utility, start the process and wait as it can take some time. For the faster result no other application should have been running on the background. If you are on multiuser mode Complete condensing process only on server computer where the main Company file is located and is used to manage all other work stations over the network.

Concluding

So, what are you waiting for? Judging by various pros and cons don’t you think QuickBooks is the best solution? Its feature of Data Condensing Utility is really something to look for. Shouldn’t you be buying a suite now? Make that call and see for yourself.