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A Step-by-Step Guide to Know about QuickBooks Condense Data Utility

Ruth Mazur
A Step-by-Step Guide to Know about QuickBooks Condense Data Utility

QuickBooks is a multi-feature accounting application. QuickBooks Company File is an essential part of the QuickBooks application. The Company File in QuickBooks contains all the organization's critical data and is vital in running almost all of the QuickBooks application. QuickBooks Condense Data Utility helps to shrink and restore the efficiency of the Company File.


Are you facing issues while utilizing QuickBooks Condense Data Utility Tool? If yes, then go through the complete article.


This article will discuss QuickBooks Condense Data Utility Tool and finds out the process involved in "Condense a File in QuickBooks." In case you face any doubt, contact us at our toll-free number (800) 280-5969. Our experts will deal with your queries.


What is the QuickBooks Condense Data Utility, and why should I Condense Data in QuickBooks?


QuickBooks Condense Data Utility is a QuickBooks application tool to shrink or compress the size of the company file that causes the overall inadequacy in running the QuickBooks application. The tool saves the recordkeeping copy of your data file and removes and summarizes the old closed transactions. Below is a list of some reasons that you need to condense data in QuickBooks.


  • If you have a larger company file size.
  • If you are closing to an inventory list limit.
  • In case you have upgraded all the hardware of your system.
  • If you want to import the Company File from QuickBooks Desktop to QuickBooks Online.
  • If your accountant or technical support adviser has discussed various other alternatives and has accepted to condense as the last option left.


Things to acknowledge before you Condense QuickBooks Desktop File


There are certain factors that you must explore before condensing a Company File in QuickBooks. Check out these points:


Non-Reversible– The decision to condense your company file shall not be taken quickly because you cannot reverse the action. So, you must only reduce the company file in QuickBooks if you need it utmost.


Maybe not be Effective on Company File Size– There is a high chance that it may not reduce your Company File's size as the open transactions.


Not to Repair File Damage– Mostly, users try to condense the company file to fix file damage. It does work sometimes; however, you can repair the damage by restoring the company file's backup or just creating a new one.


Let's discuss the list of some transactions that don't remove while utilizing the QuickBooks Condense Data Utility.


  • Payroll Transactions (If the data is before the last day of the year or unreviewed W2 of an employee).
  • Undeposited Funds' payments (If not deposited to a bank account).
  • Invoices, payments, credit memos, and refund checks (If not linked to each other).
  • Estimates of invoices (Non-posting entries can't be condensed into posting transactions).
  • Unpaid Sales Tax in Pay Sales Tax column (They are open transactions).
  • Bills, bill payment checks, and bill credits (If not linked to each other).
  • Transactions are linked to a non-condensable transaction.


There are specific reports which are also affected for the Condense period


  • Reports based on Accounts and Items
  • Reports on Sales Tax liability
  • Class-filtered reports
  • A/R collections report
  • Audit trail report
  • Reports on sales and purchases in detail
  • Reconciliations
  • Reports based on Cash into Income or Cash out to Expenses


Do you know how to Condense QuickBooks Desktop File in QB Desktop 2019?


  • At first, Open QuickBooks and select the File 
  • Click on Utilitiesand then select Condense Data.
  • Now, two options will be prompted on your screen. If you choose the new option, it will show the approximate reduction in your Company File. However, you can choose the traditional option as well.
  • Click Next.
  • When the process completes, a window will pop-up informing you about the total reduction, and the location of the backup will also be mentioned there.




In this article, we have discussed QuickBooks Condense Data Utility. We hope that the content will be relevant to your queries. However, if you feel the need for any external support, dial our toll-free helpline number (800) 280-5969.

Ruth Mazur
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