Everyone has lost computer files. A Word document here, part of a presentation there — maybe even a spreadsheet. It's maddening. But usually work can be reconstructed. Lose a QuickBooks company file, though, and you're in a world of hurt. It would be nearly impossible to rebuild your customer, vendor and product/service lists with the countless associated invoices, sales receipts and other transaction forms.
Even if you live in a geographical area where a crippling natural disaster isn't likely to hit, you could still experience a fire or burst pipes. Or you might, for example:
If you don't have a backup, you risk losing more than data. You could lose your company. Your accounting data is the backbone of your business, and it's essential to protect it. Here's how it's done.
Before you start backing up your QuickBooks file (your accounting data, templates, letters, logos, images, and related files, but not payroll), you'll need to answer two questions:
Whatever you choose, you can set up your backups from within QuickBooks.
You'll have to be in single-user mode to back up your file. If you're not sure which mode you're in, open the File menu and look about halfway down the list. If it says Switch to Multi-User Mode, you're good. If it says Switch to Single-User Mode, click on that option to make it active.
Also, it's critical that your copy of QuickBooks is up to date. If you have automatic updates turned on, you should be OK. Just to be sure — and especially if you're updating manually — open the Help menu and select Update QuickBooks Desktop to.
There are two ways to create backups of your company file. The one being covered in this column is a Local Backup. These can be either manual or automatic.
Open the File menu and click Back Up Company, then Create Local Backup. In the window that opens, select Create Local Backup. Browse to the location where you want to store your file. This can be a removable storage device like a USB drive or a CD/DVD, something you can store away from your office. Then specify your preferences in the rest of the window by answering these questions:
QuickBooks recommends that you select the Complete verification option. When you're done, click OK.
Instead of or in addition to the manual method of creating backup copies, with or without reminders, you can schedule automatic backups. In the window that opens after you've completed the Backup Options window, you can specify when you want your backups to occur. You can save your file immediately, save it immediately and schedule future backups, or just schedule future backups. Make your choice and click Next.
Do you want your file saved automatically when you close your company file every X times? Check that box. Otherwise, you can Back Up on a Schedule by clicking New.
Specify your options in the window pictured in the above image. Click Store Password to enter your Windows password to give QuickBooks permission to run your scheduled backup when you're not at your computer. When you're done, click OK. You can go back in and change these options at any time.
QuickBooks contains tools to restore your company file backup, of course. You might need to do this to undo recent changes, for example. Restoring your backup will return you to the point where you created the backup file.
Open the File menu and select Open or Restore Company. In the window that opens, click Restore a backup copy, then Next. Select Local backup in the next window and Next. The file directory of your PC that opens will only contain .qbb (QuickBooks backup) files. Browse to where you saved the file and locate it. Highlight it so the name shows in the File name window. Click Open.
The next window informs you that you're about to select a location for the backup file (which will be converted to a .qbw file). If you save it to the same directory with the same name, you will overwrite your existing file, which may or may not be what you intended. If you just want to move the backup file to your hard drive for now, rename one of the files or save it to another folder. When you're ready, click Next. QuickBooks will warn you if you're about to delete an existing file and overwrite it. (You'll have to enter YES in a box to do so.)
Restoring a QuickBooks company backup file can be risky. Unless you have a lot of experience working with this process, contact the office for help. QuickBooks is usually pretty forgiving, but you can get into trouble working with your company file.