Using the QuickBooks Accountant's Copy Feature

QuickBooks allows users to create an accountant's copy of the company's data files, allowing the practitioner to review and adjust prior period data while the client continues to process transactions in the original file for the current period. In QuickBooks Premier-Accountant, practitioners can open their client's previous year's QuickBooks data files as well as the current year's QuickBooks data files using the accountant's copy feature and make changes. The client will be able to import the changes back into their previous year's QuickBooks data file even though the practitioner used a newer version of QuickBooks. The client sets the dividing date that determines when the practitioner can edit transactions in an accountant's copy. After adjusting the accountant's copy, the practitioner can export the changes to a new file and the client can then import the practitioner's changes into the original data file. With an accountant's copy, a practitioner can—

Note: In other file types such as backup (.qbb) or portable company files (.qbm) there is no backward compatibility. Therefore, once the file is open in the newer version of QuickBooks the file can no longer be read with the older version of QuickBooks.

• Add new accounts to the chart of accounts and edit existing account names and numbers.
• Delete existing accounts from the chart of accounts.
• Record and memorize general journal entries. (Although the memorized transaction will not get back to the client.)
• Post general journal transactions to account registers.
• Adjust inventory quantities and values.

Note: If the Accountant's Copy was created from a QuickBooks 2011 or 2012 company file, practitioners can only adjust inventory by quantity, not value.

• Create, adjust, and print Forms 940, 941, 944, W-2, W-3, W-2c, and W-3c. (However, changes cannot be exported back to the client.)
• Print 1099 forms.
• Create new reports.
• Memorize reports. (Although the memorized report will not go back to the client. Memorized reports can be exported from the memorized report list.)
• Add new items to the item list and to do notes list.
• Edit account and tax information for existing items.
• View existing lists and transactions.
• View employees' year-to-date payroll setup transactions.
• Temporarily change preferences while working with the accountant's copy.
• Post journal entries for assets created using the Fixed Asset Manager.
• Add, delete, or edit most transactions dated on or before the dividing date.
• Reconcile bank accounts in any period that ends before the dividing date. (If the practitioner changes the reconcile status of a transaction in the register, the change will go back to the client.) Practitioners should warn their clients against reconciling their bank accounts after providing the accountant's copy because when the accountant's changes are imported into their data file, the bank reconciliation activity will be removed. However, transactions added to complete the bank reconciliation will still be there. If the client tries to reconcile, QuickBooks will give a warning that the changes will be lost after importing accountant changes.
• Access the Client Data Review feature.

The accountant's copy has its limitations, however. Practitioners may not perform the following activities using the accountant's copy:

• Enter or memorize transactions other than general journal entries or account register postings after the dividing date
• Reconcile bank accounts in any period that ends after the dividing date. (The practitioner can reconcile periods ending after the dividing date if it helps with their work, but those changes will not be sent back to the client.)
• Use the "Adjust payroll liabilities" feature
• Edit or delete existing payroll items
• Add new items to the payroll item list
• Delete existing inventory part items
• Change a noninventory part to an inventory part
• Merge newly created inventory part items with existing inventory part items
• Export changes made to Forms 940, 941, 944, W-2, W-3, W-2c, and W-3c
• Export changes to 1099 preferences back to the client's original file
• Delete, inactivate, or rename existing items
• Delete existing list entries or make list entries inactive
• Edit or delete existing transactions dated after the dividing date
• Enter or edit employees' year-to-date payroll setup transactions
• Export changes to preferences back to the client's original file
• Synchronize detailed fixed asset manager information

In the accountant's copy, only fields with a highlighted background will go back to the client. Fields with a white background will not. Also, some windows have buttons or fields that are disabled because they will not go back to the client. Practitioners wishing to perform one of the preceding activities should consider working with a portable company file.

Note: The practitioner and the client generally have to use the same version of QuickBooks for the accountant to make changes using accountant's copy. However, in QuickBooks Premier-Accountant, practitioners can open their client's previous year's QuickBooks data files as well as the current year's QuickBooks data files using the accountant's copy feature and make changes.

Creating an Accountant's Copy
Clients can create an accountant's copy and send a link to the practitioner to download it by opening their company file and selecting "Accountant's Copy" and then "Send to Accountant" from the "File" menu. (Premier-Accountant users should select "Accountant's Copy," then "Client Activities," and then "Send to Accountant" from the "File" menu.) In the "Accountant's Copy: Dividing Date" window, select the date to divide the transactions. For example, if the practitioner is making prior period adjustments, enter the last day of the previous fiscal year. The dividing date separates the company file into two parts. The client can continue to work on transactions after that date, while the practitioner can work on transactions on or before that date. After selecting the dividing date, the client should enter the information for sending the file (i.e., the practitioner's email address and the client's name and email address) in the "Send Accountant's Copy" window. In the next screen, the client should enter a password and any notes to the practitioner and click "Send." QuickBooks displays a message that an accountant's copy has been uploaded to the Intuit Accountant's Copy File Transfer Server. The practitioner will receive an e-mail with a link where they can download the accountant's copy. QuickBooks also displays "(Accountant's Changes Pending)" in the title bar of the QuickBooks program window. The client cannot create a new accountant's copy if an existing accountant's copy exists.

Clients can still save an accountant's copy to their hard drive or other media and transmit the accountant's copy to the practitioner. To do so, they should select "Accountant's Copy" and then "Save File" from the "File" menu. (Premier-Accountant users should select "Accountant's Copy," then "Client Activities," and then "Save File" from the "File" menu.) Click "Accountant's Copy" in the "Save Accountant's Copy" window. After selecting the dividing date, the client should verify that the file name in the "Save Accountant's Copy to" window has a ".qbx" extension. The "Save as type" should be "QuickBooks Accountant's Copy Transfer Files (*.qbx)." After clicking "Save," QuickBooks displays a message that an accountant's copy transfer file has been created successfully. QuickBooks also displays "(Accountant's Changes Pending)" in the title bar of the QuickBooks program window. The client then can transmit the accountant's copy to the practitioner. The client cannot create a new accountant's copy if an existing Accountant's copy exists.

A client that unintentionally creates an accountant's copy can cancel the copy by selecting "Accountant's Copy" and then "Remove Restrictions" from the "File" menu. (Premier-Accountant users should select "Accountant's Copy" then "Client Activities" and then "Remove Restrictions.")

Working with an Accountant's Copy
If the practitioner receives an email from their client with a link to the accountant's copy  that has been uploaded to the Intuit Accountant's Copy File Transfer Server they should click the link and save the file. (They should not open the file from this screen.) After saving the file, the practitioner can then open the file. They will need to enter the password the client provided to access the accountant's copy.

If the practitioner receives the accountant's copy directly from the client, the practitioner can open the file by selecting "Accountant's Copy" and then "Open & Convert Transfer File" from the "File" menu. QuickBooks does not allow the practitioner to open and convert an accountant's copy file without selecting "Accountant's Copy" and then "Open & Convert Transfer File" from the "File" menu.

After selecting "Open & Convert Accountant's Copy Transfer File," the first two screens describe the accountant's copy process. The practitioner should enter the location and file name of the client's QuickBooks file in the "Open Accountant's Copy Transfer File" window. The file name should have a ".qbx" extension, and the file type should be "Accountant Transfer File (*.qbx)."

QuickBooks then opens the "Save as Accountant's Copy" window. The file name in that window should have a ".qba" extension and the "Save as type" should be "QuickBooks Accountant's Copy Files (*.qba)."

Practitioners should make a note of the dividing date as they can only edit transactions dated on or before that date. The client will be able to work on transactions after that dividing date. After clicking "OK," QuickBooks displays "(Acct Copy, Div Date MM/DD/YYYY)" in the title bar of the QuickBooks program window. The practitioner enters changes to the client's QuickBooks data in this file. The practitioner can reopen the file at a later date by selecting "Open or Restore Company" from the "File" menu. As a general rule, practitioners can make changes to most transactions that are dated on or before the dividing date. In the accountant's copy, only fields with a highlighted background will go back to the client. Fields with a white background will not. Also, some windows have buttons or fields that are disabled because they will not go back to the client.

Note: QuickBooks does not allow the practitioner to open the accountant's copy if the date and time in the practitioner's computer system is earlier than the date and time the client created the accountant's copy. In that case, the practitioner should change the date and time on the computer with the wrong date and time and try to reopen the file. If that does not work, the client may need to cancel the existing accountant's copy and create a new copy.

Creating an Export File
After adjusting the client's data, the practitioner should create an export file to give to the client. While the accountant's copy of the client's file is open, the practitioner should select "Accountant's Copy" and then "View/Export Changes for Client" from the "File" menu. Review the changes and add a note to the client in the "View/Export Changes for Client" window. Click the "Print" button to print a copy of the changes. After reviewing and printing the changes, select "Create Change File for Client." The practitioner then should enter the file name and location in the "Save Accountant Change File to" window and click "Save." The file name must have an ".qby" extension.

The practitioner then can transfer the export file to the client.

Practitioners can send their clients a link to download their changes. After reviewing the changes in the "View/Export Changes for Client" window, select "Send Changes to Client." The practitioner then should enter the information for sending the file (i.e., the client's email address and the practitioner's name and email address) in the "Send Accountant's Changes" window and click "Send." The client will be sent a notification email with instructions on how to import the changes.

Note: The ability to send the client a notification email is available in QuickBooks 2011 and 2012 only.

Importing Changes
After receiving the adjusted accountant's copy file from the practitioner, the client should open the original company file and select "Accountant's Copy" and then "Import Accountant's Changes" (either from Web or from file) from the "File" menu. (Premier-Accountant users should select "Accountant's Copy," then "Client Activities" and then "Import Accountant's Changes.") QuickBooks then opens the "Import Accountant's Changes" window. The client should enter the location and file name of the practitioner's changes and click "Open." (The file name should have a ".qby" extension.) The client should review the changes and add a note to the accountant (optional) in the "Incorporate Accountant's Changes" window. Click the "Print" button to print a copy of the changes. After reviewing and printing the changes, select "Incorporate Accountant's Changes." QuickBooks will prompt the user to backup their file. After the file is saved, QuickBooks will display the import results. In this window, any warnings will be marked with a yellow triangle and the import results can be printed. After closing this window, QuickBooks will prompt the user to set or update their closing date and password to prevent changes to the prior period.

Client Restrictions
Clients can continue to process transactions dated after the dividing date using the original copy of their QuickBooks files while practitioners review and adjust transactions dated on or before the dividing date with the accountant's copy. Clients can create, edit, and delete transactions, as well as add new entries to lists and edit existing list entries in the current period.

In addition, clients cannot reorganize lists while an accountant's copy exists. For example, the client cannot change the subitem status of an account created before the existing accountant's copy was created. Clients also cannot rename existing accounts or items while an accountant's copy exists.