Changing accounting methods

[striby]

This really isn't a reply, but this is the first time I hve used this site and I haven't quite figured it out yet. I just took over the books of a small company and the previous bookkeeper accidentally chose cash basis instead of accrual and continued entering info this way for a year. Why??????????? Anyway, I know Peachtree says you cannot change that feature, but please tell me that someone out there knows of a way to go into the config files or something to correct this error. You can change your accounting method with IRS approval. If that is the case then what Peachtree?? There should be a way to change that choice. Someone please help, otherwise I'm going to have to reconstruct this whole company and I don't have time!!!!!!!!!!

[jbattista]

I had to rebuild our company for a similiar reason.

Perform a BACKUP of your current company, then access the PTC program HELP file and search for the index for "rebuild, existing Peachtree Accounting company (overview)".

Follow the instructions carefully and exactly as written.

I have followed the procedure and it worked.

[Robert Walraven]

Changing from cash-basis to accrual isn't a simple matter of changing a flag. Your accounting data is entertwined with the method you use. Since the IRS doesn't let you change the method for past data, you must preserve all previous data with the method it used. Also I don't believe you can change the method mid-year - it must be done at the beginning of the year.

If you had an accounting firm doing your books and asked him to switch methods, they would most likely do exactly what you have to do in Peachtree - start a new set of books with the new method. Sometimes with accounting there are no easy answers and you have to bite the bullet and spend the time.