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The menu option Database ⇒ Delete All Data deletes all data in your database, after confirming (twice) that this is what you want to do.
This option should almost never be used! However, here is one situation in which it might make sense to use it:
When you first start using the program, you could just enter some completely fake accounts and transactions. When you are finished testing or playing with this fake data, use this option to throw it all away, so that you can start over with your real data. You will then have to re-enter everything, starting with your Organization Info, chart of accounts etc.
Another case would be if you choose a selection on the Options for Chart of Accounts window, and shortly after that realize you should have chosen a different way of initializing your chart of accounts. As long as you haven't done much else in the program yet, you could choose this Delete All Data menu option to throw everything away and start over, making a different selection for your initial chart of accounts.
Software4Nonprofits might also ask you to use this menu option in certain unusual technical support situations.