What is the purpose of condensing my file?
Condensing makes the company file smaller in size by deleting detail from specified years and making one journal entry by month to maintain the financial records. By doing this, your company file can run a little quicker and still have the previous year-to-date information for comparison. However, if you use sales tax or inventory features, you may not be able to condense all old transactions since they have multiple links that may still be open, according to QuickBooks. Compare the pros and cons to starting a new company file vs. condensing to see what is best for you. (see above) Caution: When doing this, make sure you have a complete backup prior to condensing so that any detail information can be accessed if necessary. Once you have condensed, the information is deleted!
