In today’s world, having a backup of your company’s financial records and data is essential to ensuring the security and continuity of your business operations. As managing accounting records becomes increasingly important for businesses of all sizes, having a reliable data backup system in place will help you deal with the situation.
Various circumstances can damage or lose your company’s financial data, such as sudden system failure, accidental deletion, or a virus attack. By regularly backing up your QuickBooks data, you can safeguard your business from potential data loss, ensure quick recovery, and resume operations in case of unforeseen events.
In today’s guide, we will briefly show you the detailed procedure for backing up your QuickBooks company data and restoring it in an emergency. We will also provide you with valuable tips and insights on scheduling regular backups to ensure the safety of your financial records. Therefore, make sure to stay tuned and follow the blog until the end to protect your business data effectively and efficiently.
What Type of Data You Can & Can’t Backup With Your QuickBooks?
Before you look at the steps for backing up company data in QuickBooks, it’s important to understand what type of data you can and can’t back up with the software. While QuickBooks allows you to back up company files, invoices, and payroll details, it does not allow you to back up online payment information, reconciliation reports, bank feeds, etc.
Here is detailed information about the different types of data that can and cannot be backed up:
Data that can be backed up:
- Transaction details: This includes invoices, estimates, sales, payments, deposits, credit memoirs, bills, journal entries, refund receipts, purchase and purchase orders, time activities, and transfers.
- List Data: Budgets, classes, currencies, customers, departments, employees, items, payment methods, tax agencies, terms, vendors, tax codes, and tax rates.
- Other details include company information, attachments, entitlements, exchange rates, preferences, Intuit payroll information, inventory shrinkage, and adjustments backed up as journal entries.
Data that can’t be backed up:
The list of data that you can’t back up in QuickBooks accounting software is as follows:
- Details regarding QuickBooks online payments.
- Customer types and price rules.
- Reconciliation reports.
- Account-based billable expenses.
- Custom reports.
- The relationship between bank feeds, transactions, and bank rules is evident.
- Audit log entries.
- Recurring business transactions
- Item-based billable expenses.
- Delayed credit and charges, even though related invoices are supported.
What Type of Data Can’t You Restore Through QuickBooks Backup?
As a QuickBooks user, you should be aware that QuickBooks backups cannot restore certain data. It includes:
- Budgets – you must save them in a CSV file.
- Inventory – does not include inventory history and adjustments.
- The local backup which is stored in .cab format on your cloud account, Google Drive, or Dropbox.
- Tax rates are transferred back to liability accounts from expense accounts using the Online Backup and Restore application.
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How to Create a Backup of QuickBooks Company File?
When creating a backup of the QuickBooks company file, you should note that it’s important to regularly back up your data to prevent any loss in case of system failure or data corruption. You can easily create a backup of the company file by following a few simple steps.
However, as a new user, you must enable the necessary permissions to access and backup the company file. Let’s take a look at the different methods through which you can easily create a backup of your QuickBooks company file:
Method 1. Automatic Backup
The automatic backup method is useful for those who want to schedule regular backups and enjoy peace of mind knowing that their company data is safe. Let’s look at the steps that you can execute to schedule automatic backups of your QuickBooks company file:
- Navigate to the QuickBooks software and head forward to the File menu.
- Thereon, choose Switch to Single-User Mode.
- Again, go to the File menu and select the Backup Company option.
- Next, select the Create Local Backup option, then click on Local Backup > Next.
- Scroll down to the Local Backup Only section, click on the Browse option, and select the location where you want to save the backup file.
- Following that, select the number of backup files that you want to save. This is an optional step, and you can also use the options in the Online and Local Backup section to set backup reminders.
- Select the Complete Verification option, and the system will conduct a test to verify the integrity of your backup file, enabling you to restore it whenever necessary.
- Afterwards, select the Save it Now and schedule future backups option, then click Next.
- If you don’t want to save the backup for now, then opt for the Only Schedule Future Backups option.
- Now, check the Save backup copy automatically when I close my company file checkbox, and then choose the number of times between backups.
- To create a new backup schedule, click on the New button. Provide all the requested details, and then select a specific time or day of the week.
- Once you have set the schedule, click on the OK option.
- QuickBooks will then ask you to provide the Windows login password. Providing this will give QuickBooks the necessary rights to run a scheduled backup.
- At last, once you are ready to create the backup, click on the Finish option.
Now, the QuickBooks software will automatically create new backups and schedule your future backups at the pre-selected date or time.
Method 2: Manual Backup
If you prefer to manually create a backup of your QuickBooks company file, then here are the actions that you can take to get it done:
- Select Single-User Mode from the File menu.
- Once more, navigate to the File menu and choose Backup Company.
- Choose the Create Local Backup > Local Backup > Next option.
- Select the Browse option, and then select the location where you want to save the backup file.
- Optional: Provide the number of backups that you want to save. Additionally, you can also use the Online and Local Backup section to set backup reminders.
- After that, it will perform a scan to make sure the backup file is in excellent condition and ready for easy restoration whenever necessary.
- Click the OK button when you’re finished.
- At last, click on the Save It Now and Next option.
How to Restore a Backup of QuickBooks Company File?
If you have accidentally found yourself in trouble and feel the need to restore a backup of the QuickBooks company file, then the steps that you can carry out to do so are as follows:
- Run the QuickBooks software, head forward to the File menu, and choose the Open or Restore Company option.
- Following that, click on the Restore a Backup Copy option, and then select Next.
- Afterwards, choose the Local Backup option, and then Next.
- Now, navigate to the location where you saved the backup file on your computer. The file should be named [Company Name]. qbb.
- Select the file and click on the Open option.
- Here, you must ensure that backing up the company file in the same folder as your existing file will not overwrite it. Therefore, attempt to rename either the current company file or the backups to ensure distinct names and prevent data overwriting.
- At last, click on the Save option.
Congrats! By performing the above-listed steps, you have successfully restored the backup of your QuickBooks company file. With the QuickBooks software, you can now seamlessly enjoy your accounting tasks and access old company data without any issues.
Conclusion
Knowing how to create a backup of the QuickBooks company file and taking proactive steps to restore it is critical to having a smooth and uninterrupted experience with the software. We hope that the information covered in this blog will enable you to effectively manage your company’s data and avoid any future data loss. However, as a user, you should make sure to regularly update your backup files and test the restoration process to ensure its effectiveness. Have a seamless and stress-free accounting experience with the QuickBooks software.
