What is the name of your state (only U.S. law)? CA
We are a non-profit organization and we are transferring over a portion of our business to another non-profit entity. Although we are closely related, we are most definitely two separate organizations. We are not receiving any money for this transfer; however, I still look at it as a "sale of a business" and think it should be handled accordingly.
Is it customary business practice for the company selling the business to hand over a copy (backup) of their QuickBooks file to the new organization?
They are insistent on getting a backup of our QuickBooks file so that they can prepare an operating budget based on previous history. My opinion is that we can provide them with all of the reports (in Excel) they need to establish their operating budget, but that they should not get a copy of the actual QuickBooks file. I think that the actual QuickBooks file is something that should be protected, and not given out. I also feel that the new entity will need to start their books as a new business, so having our backup may only benefit them for a short period. I should note that in order to give them a copy of our QuickBooks file I would need to delete out over 15,000 entries that do not pertain to that portion of the business. This can be done, but I can imagine that that would a lengthy process.
One last comment is that I have hard feelings over this transfer so I don't know if I am letting my emotions cloud my judgment.
Am I correct about this, or am I being unreasonable?
Thank you for your advice and opinions.
We are a non-profit organization and we are transferring over a portion of our business to another non-profit entity. Although we are closely related, we are most definitely two separate organizations. We are not receiving any money for this transfer; however, I still look at it as a "sale of a business" and think it should be handled accordingly.
Is it customary business practice for the company selling the business to hand over a copy (backup) of their QuickBooks file to the new organization?
They are insistent on getting a backup of our QuickBooks file so that they can prepare an operating budget based on previous history. My opinion is that we can provide them with all of the reports (in Excel) they need to establish their operating budget, but that they should not get a copy of the actual QuickBooks file. I think that the actual QuickBooks file is something that should be protected, and not given out. I also feel that the new entity will need to start their books as a new business, so having our backup may only benefit them for a short period. I should note that in order to give them a copy of our QuickBooks file I would need to delete out over 15,000 entries that do not pertain to that portion of the business. This can be done, but I can imagine that that would a lengthy process.
One last comment is that I have hard feelings over this transfer so I don't know if I am letting my emotions cloud my judgment.
Am I correct about this, or am I being unreasonable?
Thank you for your advice and opinions.
