I started my business in July 2017 and have been using Excel for bookkeeping. I'd like to start using QBO from Jan 2021. My question is how to set up QBO for my existing business. I file taxes on Schedule C every year.
[Bank feeds]
1. How far back transactions do I have to enter to QBO?
All the way back to July 2017 when I started or going back to the beginning of this year(Jan 2020)? Or fresh start in Jan 2021? I can download the transactions files from some banks up to 25 months and others up to 18 months.
*I filed taxes in 2017,2018 and 2019 by using information on my excel books.
2. How do I determine Opening balance amount?
If I go back to the beginning of this year, is Opening Balance the balance of the bank account on Dec 31 2019?
[Asset]
3. In 2018 I bought some equipment that I still use when I provide my service to my customers. They last more than 1 year but I deducted the costs as an expense on Schedule C in 2018 as they were less than $2500/invoice. How do I record this equipment to show in Balance Sheet if I started to record transactions from 2020?
[Company setting]
4. Categories- Track classes,Track locations(department), Multi-Currency
I provide 2 different types of services. Let's call them A and B. Majority income is from A which is a service in person and I receive payments in USD. B is a service provided online and I receive payments in my foreign bank account in foreign currency. I started this online service in 2020 due to Covid and I am expecting the online service income will be growing next year.
Should I use class and locations(department) ?
Should I turn on multi currency ? - I saw a YouTube video that recommended not to turn it on and use class to track foreign transactions instead.
Hope my questions make sense. Thank you in advance!
