How to Setup a New Company in Sage 50?
In this article we are explaining how to create a new company in Sage 50 software.
The company file is important in the Sage 50 software as you are going to work on it. So if you are a new user then below is the process to set up a new company in Sage 50. If you are an existing user then also refer to the process below. For existing users, there are various reasons that they have to set up the company file in their Sage account.
These Reasons are:
- The company file is not opening.
- Damaged company
- Error in software that not let you open the company file
- Data loss, so create a new file and restore backup
- Other errors and issues.
Before you Create a New company File in Sage 50 using the Company Setup Wizard, you Need to:
- Ascertain the start dates and end dates of your current fiscal year.
- Ascertain the date when Sage 50 should process a transaction.
- Prepare the file containing your list of accounts for Sage 50 to import it. This step is required only if you want to use a file from an external source for your list of accounts.
|Section:||Description of Function:|
|Company Details||The company’s name, address, and federal and state identification numbers can be entered here.|
|Setup||This lets you select how the company file will be created. You can use a sample business type that resembles your company and then customize it, you can copy settings from another Sage 50 company file, you can convert a file created by another program, or you can create your chart of accounts from scratch.|
|Business Type||This appears when you create a company file from a sample business type within the “Setup” section. It lets you choose a business type that closely resembles your own.|
|In this screen, you can choose whether the company file uses cash or accrual accounting. If you are unsure which accounting method your company uses, consult your accountant.|
|Posting Method||It allows you to choose either “Real Time” or “Batch” posting. With “Real Time,” your transactions are immediately posted to the General Ledger, so Sage 50 always shows the most up-to-date financial information. You can change your posting method even after your company file has been created.|
|Accounting Periods||It allows you to specify the number of accounting periods and when they begin and end for your company.|
|Fiscal Year||Select the month and year of the first period within your company’s fiscal year here.|
|Finish||The “Setup Guide” reminds you to customize the defaults used in the company file and enter new data records.|
Once you have determined all these steps, you can move ahead to setup a new company in Sage 50.
Step for Setup a New Company in Sage 50:
- Click File and select New Company.
- Now choose a Sage 50 product and click
- In the Name and Address step, enter all your company information.
- In the Dates step, enter your fiscal start and finish dates, and then click Next.
- Select a method to create your company:
- Use a sample business type that closely matches your company: This will provide a list of business types with predefined accounts to select from.
- Copy settings from an existing Sage 50 Accounting company: This will provide you with a list of companies that can be copied from an existing Sage 50 Accounting company.
- Convert a company from another accounting program: This will create a blank chart of accounts that can be later imported or built manually.
- Build your own chart of accounts: This will create a blank chart of accounts that can be later built manually
- Consolidate Existing Sage 50 Accounting companies(Premium and Quantum only): This will create a parent company that will pull your account balances from subsidiaries for financial statement purpose.
- If ‘Use a sample business’was selected, then select a business type and click
- If ‘Copy settings’was selected, then:
- Choose a company from the list.
- Select the parts of the company that you want to copy and click Next.
- If ‘Build your own chart of accounts’ was selected, then define the Account Segments and click Next
- If ‘Consolidate Existing Sage 50 Accounting companies’ was selected, then:
- Select the company or companies you want to consolidate and click Add.
- Then click
- Enter a user name and password for the company and click
- Now, select an accounting method. Be careful while selecting the accounting method because you’ll not be able to change it after you have created your company data file.
- Accrual : In this method, the income and expense is recorded during the creation of invoice, irrespective of when the payment occurs.
- Cash : In this method, the income and expense is recorded when the invoices are paid.
- Next, select a posting method:
- Real Time: In this method, the transactions are posted as soon as they are printed or saved.
- Batch : I n this method, the transactions are added to a posting queue when saved and you need to post them manually.
- Smart Posting : In this method, the transactions are added to a posting queue and will be automatically posted when there is a lull in system activity.
- Now choose an accounting period structure. You need to select whether your company has a monthly accounting period or an accounting period that do not match the calendar months. Once you have made your choice, click Next.
- Set the fiscal year structure. Again, you will not be able to change it once the company is created. Click Next to apply the changes.
- Click Finish to complete the process.
That’s it. By carefully following the above mentioned steps, you can easily setup a new company in Sage 50 Accounting software on your own. Should you need more help or are facing problem while setting up the company file, remember expert help is just a call away. Dial our toll free number 1800 964 3096 to get in touch with our Sage expert technicians who can seamlessly set up a new company file on your Sage 50 Accounting software to help you get going. We are available round the clock to ensure minimum downtime and maximum efficiency.
Also Read-: How to Fix Sage 50 Unable to Open Company File
In conclusion, you have to follow the whole process to setup a new company in Sage 50. It is an easy process if done with step-by-step instructions. So follow it and setup your new company in less time. If you got stuck in between then reach Sage 50 helpdesk number they got you the solution for your problems and answer all your queries. The team has expert members who know how to tackle all your glitches ad provide you best assistance.
How to Setup a New Company in Sage 50 – Tutorial
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Frequently Asked Questions
What is the Accounting period that does not match the Calendar Months?
🔹 You have to set the number of periods as per the fiscal year
🔹 As there are the max 13 and min 1 periods that you can set
🔹 Now set the start date of periods 1
🔹 After that, set the range of dates for each period.
What are the 3 reasons that you get while Creating the list of Accounts while Creating the New Company in Sage 50?
Have Sage 50 create the list of accounts from the export file. You have to click on this option; if you are switching your software from Quicken, QuickBooks, or Sage 50 export file.
Have Sage 50 create a list of accounts based on the type of your business.
You can manually build your type of Chart of Accounts; when the company is created. You have to select this option when you are done with creating a new company file and after that, you are importing it.
Are Subsidiary Companies having the same Fiscal Year structure in the Company File?
Yes, it has the same structure. The subsidiary companies use the general ledger account structure in which the retained earnings account number is the same. So, it also has the same fiscal year structure to use.