While making your regular QuickBooks backups, you may have noticed on the file drop down menu an option to save an Accountant’s Copy. While this option is not beneficial for backups, it is a useful tool for passing information between our office and your books.
An Accountant’s Copy locks up your books for a specified time period. This lock makes it so you cannot adjust anything from the prior period while we are working on it. When we open the copy on our end, we are able to make all of your adjusting entries directly into your books. Then, when we are finished with your tax return, we can send the Accountant’s Copy transfer file back to you to upload our changes directly into your books.
A key thing to keep in mind with Accountant’s Copies is that while we have the file, you should not remove the restrictions. Manually removing them will override the ability to upload our changes and you will no longer be able to use our transfer file to put the entries into your books. We will have to recreate the file and recreate your entries resulting in possible additional fees for the additional work we have to perform for your override.
Another thing to keep in mind is that once we send the transfer file with our changes back to you, you should avoid all prior period adjustments. This includes voiding or deleting checks in the prior reconciled period. Please see our prior blog post about prior period adjustments for instructions on how to void checks from prior periods in the current period : http://www.cpaportland.com/blog/QuickBooks/QUICKBOOKS-TIPS
When the time comes for you to send us your yearend books to prepare your tax return, consider sending us an accountant’s copy instead of a regular back up.