New Company File in QuickBooks

I start out each year with a new company file for QuickBooks. It seems perfectly reasonable because my QuickBooks complexity does not effect my process of creating the file. Starting with a new file keeps QuickBooks operating fast and error free. I’ve always taken my process for granted because is as simple as exporting lists and templates and beginning with opening balances in the appropriate accounts. Also, I export my financial statements and compare year to year trends in Excel. I’ve read several places that creating a new company file each year is a best practice.

I can see multitudes of problems for companies that have more complex requirements for QuickBooks than I have. In the past, I argued that creating a new company file each year was best practice. However, I now know that extenuating circumstances can prevent a business from creating a new file every year.Here’s what Intuit has to say about it.

If my business were more complex, I would have serious concerns around the limitations that payroll and time entries, online banking and comparative yearly reports have on my ability to mitigate performance problems with QuickBooks by creating a new company file every year. The large company files as well as the database serving methodology employed by QuickBooks seriously impacts QuickBooks Multi User performance.

I regularly upgrade networks to gigabit to mitigate the QuickBooks performance situation, something I do not do with Peachtree companies. I’m not recommending that you move to Peachtree. But, I am concerned that QuickBooks client server software architecture needs to be reevaluated, de-bloated and moved to a 21st century state of the art client server design. If my business’s accounting needs depended upon application performance and tight integration between payroll, time entry, banking and year to year comparative reporting, I would have to seriously consider something else other that QuickBooks Multi User.

Intuit’s efforts in licensing and improving Hosted QuickBooks and QuickBooks Online are admirable. But, hosted solutions are not the answer to every businesses’ requirements. Tell a doctor I know that’s office has no Internet connectivity, that he needs to move QuickBooks 2006 to QuickBooks online for the latest features and you’ll know what I mean.

The current state of QuickBooks client server performance needs a hard look by a few good client server architects. I don’t think I’m alone in my opinion. What do you think?