How Do You Create an Accountant’s Copy in QuickBooks Desktop?
Managing your business’s financial records with precision is essential, and QuickBooks Desktop offers a powerful suite of tools to help streamline this process. One particularly valuable feature is the ability to create an Accountant’s Copy—a specialized version of your company file designed to facilitate seamless collaboration between business owners and their accountants. Whether you’re preparing for tax season, conducting audits, or simply seeking expert financial advice, understanding how to create an Accountant’s Copy can save time and reduce errors.
This feature allows you to continue working on your books while your accountant reviews and makes necessary adjustments, all without interfering with each other’s work. It bridges the gap between day-to-day bookkeeping and professional accounting oversight, ensuring that both parties stay synchronized. By creating an Accountant’s Copy, you gain the flexibility to maintain control over your financial data while leveraging your accountant’s expertise efficiently.
In the following sections, we will explore the essentials of creating an Accountant’s Copy in QuickBooks Desktop, highlighting the benefits and considerations that come with using this collaborative tool. Whether you’re new to QuickBooks or looking to optimize your accounting workflow, mastering this process will enhance your financial management and communication with your accounting professional.
Steps to Create an Accountant’s Copy in QuickBooks Desktop
Creating an Accountant’s Copy in QuickBooks Desktop allows you to share your company file with your accountant without disrupting your daily bookkeeping activities. This feature partitions the data so that your accountant can work on specific transactions while you continue to work on other parts of the file.
To create an Accountant’s Copy, follow these steps carefully:
- Open your QuickBooks Desktop company file.
- Navigate to the File menu and select Send Company File.
- Choose Accountant’s Copy, then select Client Activities.
- Click Save File, which will prompt you to specify the location where you want to save the Accountant’s Copy file.
- Set the dividing date. This date determines the point at which your accountant can begin making changes. Transactions after this date will be locked for the accountant.
- Confirm the dividing date and save the file. QuickBooks will generate a file with the extension `.qbx`, which is the Accountant’s Copy.
Once the `.qbx` file is created, you can send it to your accountant via email, cloud storage, or any secure file transfer method. This process ensures that your accountant only works on the portion of the data you permit.
Understanding Dividing Date and Its Importance
The dividing date is a critical element when creating an Accountant’s Copy. It defines the cutoff date for accountant access to the file, effectively splitting the company file into two parts:
- Transactions before or on the dividing date can be modified by your accountant.
- Transactions after the dividing date remain locked to the accountant but accessible to you.
Choosing the correct dividing date is essential because it impacts the scope of work your accountant can perform and prevents conflicts between simultaneous edits.
| Aspect | Details |
|---|---|
| Purpose | Allows accountant to work on finalized data while client continues with daily transactions |
| Dividing Date | Cutoff date for accountant access to modify transactions |
| File Type | .qbx file created for accountant use |
| Client Access | Can continue to work on transactions after dividing date |
| Accountant Access | Can modify transactions on or before dividing date only |
It is recommended to choose a dividing date that allows your accountant to complete the necessary work without blocking your ongoing bookkeeping activities.
Working with the Accountant’s Copy File
After your accountant receives the Accountant’s Copy file, they will use QuickBooks Desktop to open and work on it. The `.qbx` file is imported into QuickBooks Accountant Edition or a supported version of QuickBooks Desktop, which allows the accountant to:
- Review and adjust transactions up to the dividing date.
- Make corrections, adjustments, and prepare reports.
- Send back changes to you in the form of an Accountant’s Changes file (`.qby`).
Once your accountant completes the work, they will send you the `.qby` file, which you can import back into your company file.
Importing Accountant’s Changes into Your Company File
To integrate the changes made by your accountant, you need to import the Accountant’s Changes file. This process updates your company file with the modifications without affecting the transactions you have entered after the dividing date.
Follow these steps to import the `.qby` file:
- Open your QuickBooks Desktop company file.
- Go to the File menu, then select Accountant’s Copy and choose Import Accountant’s Changes.
- Browse and select the `.qby` file sent by your accountant.
- QuickBooks will analyze the changes and display a summary of updates.
- Review the changes carefully, then click Import to apply them.
During the import process, QuickBooks may prompt you to resolve any conflicts between your transactions and the accountant’s changes. It is crucial to address these conflicts promptly to maintain data integrity.
Best Practices When Using Accountant’s Copy
To ensure smooth collaboration and accurate bookkeeping, consider these best practices:
- Communicate the dividing date clearly with your accountant to avoid confusion.
- Backup your company file before creating or importing any Accountant’s Copy files.
- Limit changes to critical transactions after creating the Accountant’s Copy to minimize conflicts.
- Use secure methods to send and receive `.qbx` and `.qby` files to protect sensitive financial data.
- Update QuickBooks Desktop to the latest version to avoid compatibility issues.
- Coordinate schedules with your accountant to determine when to create and import Accountant’s Copies.
By adhering to these guidelines, both you and your accountant can work efficiently without data loss or duplication.
Steps to Create an Accountant’s Copy in QuickBooks Desktop
Creating an Accountant’s Copy in QuickBooks Desktop allows a business owner and their accountant to work on the company file simultaneously without interfering with each other’s work. This feature restricts certain transactions for the accountant to modify while allowing the business owner to continue entering day-to-day transactions.
Follow these detailed steps to create an Accountant’s Copy:
- Open QuickBooks Desktop: Launch your company file in QuickBooks Desktop.
- Go to the File Menu: Click File on the top menu bar.
- Select Accountant’s Copy: Hover over Accountant’s Copy and then select Client Activities.
- Choose Create Accountant’s Copy: This option initiates the process of creating a copy for your accountant.
- Set the dividing date: In the dialog box, specify the dividing date. Transactions on or before this date will be available for the accountant to work on. Transactions after this date remain open for the client to edit.
- Save the Accountant’s Copy: Choose the location where you want to save the Accountant’s Copy file (.qbx). Ensure it is a secure and easily accessible location.
- Send the Accountant’s Copy to your Accountant: You can either share the file via email, cloud storage, or any secure file-sharing method.
| Step | Description | Important Notes |
|---|---|---|
| Open QuickBooks | Launch your company file | Ensure you have a backup before proceeding |
| File > Accountant’s Copy > Client Activities | Navigate to the Accountant’s Copy options | Only users with Admin rights can create the Accountant’s Copy |
| Create Accountant’s Copy | Start the creation process | Dividing date determines editable transactions |
| Set Dividing Date | Specify the cutoff date for accountant access | Common practice is to set it at the end of a reporting period |
| Save & Share | Save the .qbx file and send to accountant | Use secure methods to protect sensitive data |
Considerations When Using Accountant’s Copy
Using an Accountant’s Copy involves understanding certain restrictions and best practices to ensure smooth collaboration between the client and accountant.
- Dividing Date Restrictions: The accountant can only make changes to transactions on or before the dividing date. Transactions after this date remain accessible to the client.
- Working Simultaneously: The client can continue to enter new transactions after the dividing date without interfering with the accountant’s changes.
- Sending the Accountant’s Changes Back: Once the accountant completes their work, they send back an Accountant’s Changes file (.qby) which the client imports into their QuickBooks file.
- Handling Conflicts: If there are conflicting changes between the client and accountant, QuickBooks provides a conflict resolution interface to manually decide which changes to keep.
- Limitations: Certain transactions and features are restricted during Accountant’s Copy usage, such as payroll processing and some list edits.
- Backup Importance: Always back up your company file before creating or importing Accountant’s Copies to prevent data loss.
How to Import Accountant’s Changes into QuickBooks Desktop
After your accountant has completed their review and adjustments, they will provide you with an Accountant’s Changes file (.qby). Follow these steps to import the changes safely:
- Open QuickBooks Desktop and your company file.
- Go to the File Menu: Click File, then Accountant’s Copy, and select Client Activities.
- Choose Import Accountant’s Changes: Select this option to import the .qby file.
- Locate the .qby File: Browse to the location where your accountant sent the changes file and select it.
- Review Changes: QuickBooks will display a summary of changes. Carefully review and resolve any conflicts if prompted.
- Complete the Import: Confirm the import to apply the accountant’s changes to your company file.
| Step | Action | Notes |
|---|---|---|
| Open QuickBooks | Open your company file | Ensure no other users are logged in |
| File > Accountant’s Copy > Client Activities | Navigate to import option | Admin rights required |