Important: condensing data has a significant effect on your company file. We suggest you review How QuickBooks condenses data before you proceed.
Before you can condense data, you must first close all windows that are currently open on the QuickBooks desktop.
For example, to condense data up to the end of 2008, you would enter 12/31/08. This would condense all transactions dated on or before 12/31/08. Transactions dated 1/1/09 and later would not be affected.
A message appears stating that QuickBooks will make a backup file before it condenses the transactions. The backup file ensures that you will still have a record of the details of any transactions that QuickBooks deletes from your company file.