What is an Accountant's Copy?

An Accountant's Copy is a special version of your QuickBooks company file that allows you to share your financial data with your accountant while still being able to work on your file. It creates a dividing date, allowing your accountant to work on transactions before that date while you continue to work on transactions after that date.

Benefits of Using an Accountant's Copy

1. Simultaneous work: You can continue working on your file while your accountant reviews and makes changes.
2. Data security: Only a portion of your data is shared, maintaining confidentiality.
3. Efficient collaboration: Changes made by your accountant can be easily imported back into your main file.
4. Time-saving: Eliminates the need for manual data entry of accountant's adjustments.
5. Version control: Prevents conflicts that could arise from multiple versions of the same file.

Step-by-Step Guide to Creating an Accountant's Copy

Step 1: Prepare Your QuickBooks File

Before creating an Accountant's Copy, ensure your QuickBooks file is up to date:

1. Back up your company file.
2. Run the Verify Data utility (File > Utilities > Verify Data).
3. If any issues are found, run Rebuild Data.

Step 2: Create the Accountant's Copy

1. Open your company file in QuickBooks Desktop.
2. Go to File > Send Company File > Accountant's Copy > Client Activities > Save File.
3. In the "Accountant's Copy" window, select "Accountant's Copy" and click "Next."

Step 3: Set the Dividing Date

1. Choose a dividing date. This is typically the last day of the period you want your accountant to review.
2. Click "Next."

Step 4: Save the Accountant's Copy

1. Choose a location to save the file. It will have a .QBX file extension.
2. Click "Save."

Step 5: Send the File to Your Accountant

You can send the .QBX file to your accountant via email, cloud storage service, or physical media like a USB drive.

Alternative Method: Using Accountant's Copy File Transfer Service

QuickBooks also offers a secure file transfer service for Accountant's Copies:

1. Go to File > Send Company File > Accountant's Copy > Client Activities > Send to Accountant.
2. Follow the prompts to set the dividing date and enter your accountant's email address.
3. Create a password for the file and click "Send."

Your accountant will receive an email with instructions to download the file.

Working with an Accountant's Copy: Client Perspective

Once you've created and sent an Accountant's Copy, you'll notice some changes in your QuickBooks file:

1. "Accountant's Changes Pending" will appear in the title bar of your company file.
2. You can continue to work on transactions after the dividing date.
3. Transactions before the dividing date will be locked to prevent conflicts with your accountant's work.

Restrictions During Accountant's Copy Period

While an Accountant's Copy is active, you'll face some limitations:

1. You can't make changes to lists (like the Chart of Accounts) that affect periods before the dividing date.
2. You can't run certain utilities like Verify Data or Rebuild Data.
3. You can't change your fiscal year or convert to a new QuickBooks version.

Receiving and Importing Accountant's Changes

When your accountant finishes their work, they'll send you an Accountant's Changes file (.QBY):

1. Go to File > Accountant's Copy > Import Accountant's Changes.
2. Locate and select the .QBY file.
3. Review the changes and click "Incorporate Accountant's Changes."

After importing, the "Accountant's Changes Pending" message will disappear, and all restrictions will be lifted.

Best Practices for Using Accountant's Copy

1. Communicate clearly with your accountant about the dividing date and the scope of work.
2. Don't make changes to locked transactions or lists while the Accountant's Copy is active.
3. Keep a backup of your file before creating the Accountant's Copy and before importing changes.
4. If possible, avoid running payroll or making significant changes during the Accountant's Copy period.
5. Regularly check for and import your accountant's changes to minimize conflicts.

Troubleshooting Common Issues

Issue 1: Unable to Create Accountant's Copy

Solution:

• Ensure you have the latest QuickBooks update installed.
• Check that your company file isn't too large (over 350MB).
• Verify that you have sufficient disk space.

Issue 2: Accountant's Copy File Won't Open

Solution:

• Confirm that your accountant is using a compatible version of QuickBooks.
• Ensure the file wasn't corrupted during transfer. Try resending it.

Issue 3: Can't Import Accountant's Changes

Solution:

• Verify that you're using the correct .QBY file.
• Ensure no other users are logged into the company file.
• Check that you haven't made conflicting changes to locked areas of the file.

Advanced Features of Accountant's Copy

Custom Field Transfers

You can choose which custom fields to include in the Accountant's Copy:

1. Go to File > Utilities > Accountant's Copy > Custom Field Transfer Setup.
2. Select the fields you want to include and click "OK."

Working with Accountant's Copy Year-Round

While Accountant's Copy is often used for year-end work, it can be beneficial year-round:

1. Monthly or quarterly reviews: Create an Accountant's Copy at the end of each month or quarter for regular check-ins.
2. Special projects: Use it for specific tasks like cleaning up old transactions or setting up new accounts.

Accountant's Copy for Multiple Entities

If you manage multiple related entities in separate QuickBooks files:

1. Create Accountant's Copies for each entity with the same dividing date.
2. Ensure your accountant has the necessary permissions and file versions for all entities.

Security Considerations

Protecting your financial data is crucial when using Accountant's Copy:

1. Use strong, unique passwords for your QuickBooks file and Accountant's Copy.
2. Encrypt the Accountant's Copy file before sending it electronically.
3. Consider using QuickBooks' secure file transfer service instead of email.
4. Regularly update QuickBooks to ensure you have the latest security patches.

Alternatives to Accountant's Copy

While Accountant's Copy is a powerful tool, it may not be suitable for all situations. Consider these alternatives:

1. QuickBooks Online: Offers real-time collaboration without the need for file transfers.
2. Remote access: Allow your accountant to access your QuickBooks Desktop file remotely.
3. Backup copy: Send a full backup of your file if you don't need to work on it simultaneously.

Educating Your Team

If multiple people in your organization work with QuickBooks, it's important to educate them about Accountant's Copy:

1. Conduct a training session on the Accountant's Copy process.
2. Create a written procedure for creating and working with Accountant's Copies.
3. Designate a point person to manage the Accountant's Copy process.

Future of Accountant's Copy in QuickBooks Desktop

As QuickBooks continues to evolve, we may see changes to the Accountant's Copy feature:

1. Enhanced cloud integration for easier file sharing.
2. Improved conflict resolution for simultaneous changes.
3. More granular control over which parts of the file are shared.

Stay updated with QuickBooks' latest features and updates to make the most of this tool.

Conclusion

Creating an Accountant's Copy in QuickBooks Desktop is a powerful way to collaborate with your accountant while maintaining control over your day-to-day bookkeeping. By following the steps outlined in this guide and adhering to best practices, you can streamline your accounting processes, ensure accuracy, and make the most of your accountant's expertise.

Remember that effective use of Accountant's Copy requires clear communication with your accountant, careful attention to the dividing date, and a good understanding of the feature's limitations. With practice, you'll find that Accountant's Copy becomes an invaluable tool in your financial management toolkit.

Whether you're preparing for year-end tax work, conducting regular financial reviews, or tackling special accounting projects, mastering the Accountant's Copy feature will help you maintain accurate, up-to-date books while leveraging your accountant's professional insights. By embracing this collaborative approach, you're not just managing your finances – you're setting your business up for informed decision-making and long-term success.

Citations: [1] https://quickbooks.intuit.com/learn-support/en-us/help-article/company-file/create-accountant-copy-company-file-quickbooks/L7vx8V8F3_US_en_US [2] https://www.dh-cpa.com/uncategorized/quickbooks-backup-copy-vs-quickbooks-accountants-copy/ [3] https://www.cpanerds.com/blog/accounting/quickbooks-accountants-copy-back-up/ [4] https://www.coraltreetech.com/qbox-blog/quickbooks-desktop-accountant-copy [5] https://quickbooks.intuit.com/learn-support/en-ca/help-article/accounting-bookkeeping/use-accountant-copy/L9HjCckvn_CA_en_CA [6] https://www.saasant.com/articles/accountant-copy-in-quickbooks-everything-you-need-to-know/ [7] https://www.fusiontaxes.com/thought-leadership/blog/avoid-costly-errors-tips-for-accurate-bookkeeping-with-quickbooks-plus/ [8] https://quickbooks.intuit.com/learn-support/en-us/help-article/accounting-bookkeeping/use-accountant-copy/L9HjCckvn_US_en_US