Hi there here are two alternative solutions to remove outstanding payables from the database:

1. You can first process negative invoices for each vendor’s outstanding invoice. Second in Payments you can pay positive against negative invoices. The total in Payment will be zero. That will result in the outstanding payables being cleared from the database. This first solution will be the simplest way to update payables. In this case your reconciliation will be fine as the bank account is not involved.
2. As you were mentioning a second solution can be to create a new company, in this case you can export then import lists only. The importation will not bring your transactions so you will have to enter opening balances for current outstanding.

Hope this helps

Hi there here are two alternative solutions to remove outstanding payables from the database:

1. You can first process negative invoices for each vendor’s outstanding invoice. Second in Payments you can pay positive against negative invoices. The total in Payment will be zero. That will result in the outstanding payables being cleared from the database. This first solution will be the simplest way to update payables. In this case your reconciliation will be fine as the bank account is not involved.
2. As you were mentioning a second solution can be to create a new company, in this case you can export then import lists only. The importation will not bring your transactions so you will have to enter opening balances for current outstanding.

Hope this helps

I would not reverse the outstanding payables since that will decreased your expenses and increase your ITCs for taxes for the current year. If there was an accountant who did the annual year-ends then that person would have the bank reconciliation for you even if bank was never reconciled.

I would also not start a new company since then you have no previous record to go by without having to open up the old data files.

If you know that only a company business account was used to pay all payments (the owner/shareholder never paid from personal funds nor paid from company credit cards if any used) then you could for now set up a new 1000 range of account called "Unreconciled Payments' set up as a bank and pay those outstanding payables thru there. At least this way you can start the process of setting up the bank reconciliation.

Later you can go back into previous years boxes to see where the chq stubs etc are and if paid by bank then transfer from the Unreconciled Payments to the bank account using a date prior to the start date of the first bank reconciliation. At year-end the accountant may just clear these out thru an adjusting journal entry.