Technically you should save the company  as at May 1/23 as a new company then go in and change the HST #'s in the new company. Because you have the same name etc. it would be best to call the new company the name it was plus put the word "new" at the end . This way until you pass year end you won't mix up the two sets of books.

Hi Vance Van Der Mark

Since it looks like you are using Sage 50 Canada, I am going to move this post to that Support Group so that other users of this software will see it.

Thanks,

Erzsi

I would highly advise you to consult with an accountant on this matter, and I would not be surprised if they say you need a completely new Sage file. I don't believe you can just simply swap out new business numbers, HST accounts, etc., I could be wrong, there may be some sort of clause somewhere, hence I would suggest you speak with an accountant. So with that caveat...

I'm going to use fictional names to aid in the illustration of my question: Assuming "John" and "Tom" are equal business partners and their business is the incorporated entity, "Widgets R Us Limited." They each own 50% of the shares in Widgets R Us Limited. If Tom exited the business, I'm wondering why John simply didn't 'buy out' Tom's shares? That way the business can continue as is with the same name, business number and GST program account.

All that said, if the entity Widgets R Us Limited has been officially dissolved, and there is now a new incorporated business "Parts Inc.", of which John is the only shareholder at 100%, and there is now a new business number and new GST program account, you would absolutely need to create a new Sage file.

You will be required to post inter-company journal entries if some of the A/P and A/R are in the old business, especially if the same bank account is in play, for the purpose of bank reconciliations, for example.

The dissolved entity Widgets R Us will still have to report GST until the GST program account is closed, even if the EFILINGs are nil filings. I believe the same logic applies with corporate tax and payroll.

Anyway, best to chat with an accountant.. I have very limited experience with those types of transitions and the nuances around that, but I have posted interco entries before, for this very reason.

Hope that helps on some level...