How to Add or Create New Company File In Sage 50?

Creating a new company file is vital when using Sage 50 accounting software. For new users, it is required to manage business finances efficiently and smoothly.

In this guide, we will talk about how to create a new company file, how to set it up, and how to modify settings for company files in Sage 50.

Let us begin by understanding all about how to Add or Create New Company File In Sage 50?

What is a Company File in Sage 50 accounting software?

A Company file in Sage 50 is a text file minus an extension. Sage Accounts creates such files during the initial setup. The contents of the file vary, based on its installation.

How to Create a New Company File in Sage 50?

Creating a new company file in Sage 50 is easy. However, there are certain prerequisites that must be met to create a new Sage 50 Company File successfully.

See More: Sage 50 Comapny File Check And Repair

Prerequisites:

• Classify the start and end dates of the latest fiscal year.
• Set the earliest transaction date allowed in Sage 50 Accounting software.
• Create the file to import account lists from an external source.

Here are the steps to create a new company file in all editions of Sage 50 accounting software:

1. Open the Home screen and go to the File menu. Choose the option, “New Company.“
2. Select the “Help me create my company” option.
3. Add the legal name and address of the company. The chosen area sets the default sales tax account types and numbers.
4. Add the start and end date of the company’s fiscal year. Set the previous transaction date for the fiscal year in SAGE 50.
5. In the “List of Accounts” step, choose a method to create your account list. Hit the “Next” option.
6. Complete the guidelines for the selected method to finish the account list setup.

When the list of accounts depends on the business type:

• Select the ownership structure, industry type, and business type from the lists. Hit the “Next” option.
• Click the “View List of Accounts” option to check what accounts Sage 50 Accounting will create.
• Click the “Account Ranges” option to modify or expand the account class ranges.

When the list of accounts depends on an exported file:

• Choose the program used to export the file and hit the “Next” option.
• Choose the industry type from the list and hit the “Next” option.
• Add the filename and location or use the “Browse” option to locate it. Click the “Next” option.

See More: Download Sage 50 2023 USA Edition

To build accounts manually after creating the company, choose the industry type from the list and click the “Next” option.

7. In the “File Name” step, add the name and location of the company file or click the “Browse” option to select a location. Click the “Next” option.

8. Lastly, click the “Finish” option.

How to Set Up Your Company File in Sage 50?

To set up a company file in Sage 50, follow these steps in the given order:

Step 1: Open the Setup Wizard

1. Open the Sage 50 application on your system.
2. In the “Welcome” screen, choose the option, “Create a New Company”.
   • The Company Setup Wizard appears and directs you through the setup process.

Step 2: Add Basic Company Information

1. Enter company details:
   • Company Name
   • Address
   • City, State, and ZIP Code
   • Phone Number and Email Address
2. Add your Federal Employer ID Number (EIN) if relevant.
3. Select your Fiscal Year Start Date and other accounting preferences.

Step 3: Select the Chart of Accounts

Choose any one of the following options:

• Use a Default Chart of Accounts: Choose a predefined template for the business type (e.g., service, retail, and manufacturing).
• Copy Settings from an Existing Company: Copy settings from a different business by accessing Sage 50.
• Create a New Chart of Accounts: Modify accounts to address your specific needs.

Read More: Delete Chart of Accounts In SAGE 50

Step 4: Customize Accounting Method

1. Select the accounting method:
   • Cash Basis: Record income and expenses when payments are made or received.
   • Accrual Basis: Record income and expenses when sustained.
2. Decide whether to maintain inventory and monitor quantities.

Step 5: Set Up Posting Method

Choose the preferred posting method:

• Real-Time Posting: Record transactions straightaway.
• Batch Posting: Save and post transactions later.

Step 6: Create Security Settings

1. Build an Admin Password to get access to the company file.
2. Create user roles and permissions for several users using the file.

Step 7: Check and Verify Settings

1. Confirm all the details added.
2. Select the location on the system to save the company file.
3. Hit the “Finish” option to complete the setup.

Read More: Upgrade SAGE 50 older version to latest release 2024

How to Review and Modify the Settings for Company File in Sage 50?

Once the company file setup is complete, check your company settings and update the books.

In Sage 50 Accounting software, settings are distributed into the following types:

1. System settings
2. User preferences
3. Form and report settings

Step 1: System Settings

System settings are available on the Settings screen, and assembled by module. Backup options and settings impacting multiple modules are in the Company group.

There are three significant system settings that must be reviewed:

• Sales Taxes
• Foreign Currencies
• Linked Accounts

Step 2: User Preferences

Customize Sage 50 Accounting for all users. For instance, hide needless modules or modify terminology from simple English to accounting terms.

Step 3: Report & form options

• Report options describe the default print settings for reports. Change these settings on individual reports.
• Choose the form type for business forms like Sage 50 invoice and cheques.
• Modify any form using the Sage 50 Accounting Form Designer to meet your business requirements.

Step 4: Adding or changing accounts

The New Company Setup Wizard prepares a set of accounts for your business. You can include, hide, or erase accounts, or change the accounts in the list.

Account basics:

• Sage 50 Accounting allocates numbers to accounts, enabling you to classify the account type by its number.

Note: In transactions and reports, account numbers can be hidden. These settings are present in the Settings window, in the General group, under Numbering

Generally, businesses follow the below standard account grouping:

Numbers vary for standard account groupings
Number Range	Account Group
1000 – 1999	Asset
2000 – 2999	Liability
3000 – 3999	Equity
4000 – 4999	Revenue
5000 – 5999	Expense

• Account Types in Sage 50 Accounting regulate how accounts and totals appear on the financial reports.
• Sage 50 accounting analyses the account balance automatically, income minus expenses, as of the present session date.

Account Classes

These are subcategories of the main account groups. For instance, Bank is a certain kind of Asset account. When the Account Class is set to Bank, extra fields for electronic banking turn available.

Entering account balances

Enter your opening account balances if your business is already operating. Add amounts like total customer debts to ensure accurate records in Sage 50 Accounting.

Note: Update all account Sage balance sheet to maintain precision in Sage 50. Missing balances can lead to account mismatches. You are advised to accept the recommended account or choose another one.

Add accounts and enter opening balances in the Account Ledger.

1. Find the latest Trial Balance report, dated one day prior to the Earliest Transaction Date in the New Company Setup Wizard.
2. In the Setup menu, choose the “Setup Guide,” option then click the “Accounts” icon.
3. For every account, add the balance from the trial balance.

Beginning transactions in Sage 50 Accounting from the beginning of the fiscal year results in a simple trial balance. It will only include balances for balance sheet accounts, not expense and income accounts.

Checking Account Balances

Print a trial balance in Sage 50 Accounting. Review it against the present records to confirm the accuracy.

1. Launch the Company page on the Home screen. Select the “Report Centre” icon from the Reports pane. Select “Financials”, “Trial Balance”, and then “Historical Opening Balance” option.
2. Click the “Create” option to check the report.
3. Ensure the printer is set up. Select the “Print” option from the toolbar.
4. Review the account numbers, balances, and names against the available records.

Final Words

In this article, all the crucial information related to creating a new company file in Sage 50 has been mentioned. In addition to it, how to set up a new company file information has been shared too.

Still, some users may face problems or have certain queries regarding the topic. In such a scenario, feel free to call our Sage experts and resolve your query. Call us at +1 347-967-4079.

Frequently Asked Questions (FAQ’s)