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How Does an Accountant Working With Client Data From an Accountant’s Copy File Return Completed Work To a Client?

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The approach you use to return completed work to a client depends on which way you opted to work with the Accountant’s Copy export file (.QBX) file at the outset.  Intuit does not provide electronic communications to transmit completed work to a client however you chose to work with the file initially.  The simplest electronic method to transmit completed work is via email, but that may not be feasible if you opted to work with the .QBX file by converting it to a company file (.QBW).

For background, the Accountant’s Copy export file (.QBX) in QuickBooks is an easy way for a company to transfer data to a third-party, such as an accountant.  In an article on our blog, we’ve described how a company can easily transfer an Accountant’s Copy export file (.QBX) to us using Intuit’s secure servers.  This file could also be delivered via other methods, such as delivery on a flash drive or other physical media.  Intuit uses the terms “export” and “transfer” to describe a .QBX file interchangeably.  For simplicity, we’ll refer to this file as an export file because “eXport” serves as a better reminder of the purpose of the file extension, .QBX.

Working with an Accountant’s Copy is essentially a 5 step process:

  1. client sends an Accountant’s Copy export file (.QBX) to an accountant or third party
  2. accountant or third party works with the data
  3. an accountant or third party returns completed work to the client
  4. client imports changes made by accountant or third party
  5. resolving problems if the client import fails

Throughout this article, we’ll refer to different file types with similar names.  The function of each of these files is very specific.  For more information, see our article describing the different file types in QuickBooks.  In this article we’ll address how to return completed work to a client.

There are 2 ways to work with an Accountant’s Copy export file (.QBX):

  1. Convert it to an Accountant’s Copy working file (.QBA), which allows your changes to be automatically incorporated into the client’s company file, or
  2. Convert it to a company file (.QBW), which will not allow your changes to incorporated into the client’s company file

How work is returned to a client depends on the method you opted to use the .QBX file from the start.  Hopefully, before doing any work you evaluated which method best suited your needs, because once the work is completed, your options on how to return that work are limited.

Method 1 – You Previously Chose To Convert a .QBX to a .QBA File

The principal benefits of using this method are threefold:

  • your client can continue to record transactions in the company file after the dividing date,
  • QuickBooks will record only your changes in an Accountant’s Copy import file, resulting in a much smaller file to be transmitted to the client, and
  • tools are in place from within QuickBooks to easily document changes you made to the file.

This method is only available if you are working with the Accountant Edition of QuickBooks.  From within QuickBooks, click the File->Accountant’s Copy->View/Export Changes for Client… menu selection.

QuickBooks Accountants Copy View Export

With the View/Export Changes for Client window open, you’ll be able to:

  • record a note to your client describing the work you performed
  • review the changes you made to the file
  • print or save a PDF report of your work
  • create a .QBY import file (referred to as a Change File on the button) for transmission to your client

Here’s the View/Export Changes for Client window with important sections highlighted:

QuickBooks Accountants Copy Accountant's Changes

In this example, we recorded a single change in the .QBA file created from the client’s data, a journal entry.  Changes initially appear as single line items, and you can expand (+) or collapse (-) the detail that appears below a transaction by clicking the appropriate indicator to the left of the transaction.  If you’ve recorded more than a few transactions, you can also also click the Expand All and Collapse All buttons to perform those tasks on all of the transactions you recorded.

To document your work, click either the Print or Save as PDF button.  We’ve attached a sample of the PDF produced by QuickBooks.

Once you’ve documented your work, click the Create Change File for Client button.  This will create an Accountant’s Copy import file (.QBY) from the .QBA file.  The .QBY import file will contain only the data required to update your client’s company file, so it’s much smaller in size than other file types.  That makes it easy to transmit via email, since many internet service providers impose restrictions on the size of email attachments.  In addition, security is less of a concern because you’re not transmitting all of a company’s financial information – just a record of your changes.

When you click the Create Change File for Client button, you’ll be prompted to specify a location for the .QBY file.  Be sure to write down this location.  Open your email client, address an email to your client, attach the .QBY file you just created, and send it.  Your completed work is now on its way to your client.

Method 2 – You Previously Chose To Convert a .QBX to a .QBW File

If you opted to convert an Accountant’s Copy export file (.QBX) file to a company file (.QBW) and record your work in that company file, you’ll need to replace your client’s company file (.QBW) with the company file that contains your work.

Unlike the previous method, QuickBooks doesn’t provide any tools to assist in this process.

Because a company file (.QBW) is the primary file for recording data in QuickBooks for Windows, the file is considerably larger than other file types.  You may find that the size of the company file makes electronic transmission, especially via email, more difficult.  For example, the company file containing the sample data we used in these examples is 7944 Kb, or nearly 8 megabytes, in size.  By comparison, the Accountant’s Copy export file (.QBX) created from this company file to be sent to an accountant is only 328 Kb.  The Accountant’s Copy import file (.QBY) containing our 1 journal entry is less than 2 Kb in size, which is about the space required for 1 transaction.  If we had recorded 100 transactions resulting in a .QBY file of approximately 200 Kb, it would be easier to transmit that file via email than a file containing nearly 8 Mb of data.  If the company file (.QBW) containing your work is too large for transmission via email, you can consider:

  1. compressing the file with a file compression utility,
  2. using a file service that isn’t subject to the limits imposed by your internet service provider on email, or
  3. physical delivery of the file on electronic media.

Before replacing your client’s company file with the one containing your work, be sure to create a backup copy of the client’s data.  If the client did record transactions in the company file, those transactions will be lost once you replace the client’s company file with the one containing your work.  The backup will provide the ability to identify those transactions at a later date and enter them manually.

If you created and emailed a .QBY file, your client will need to incorporate the changes that are recorded in the Accountant’s Copy import file (.QBY) that you supply.  We describe incorporating the changes in an Accountant’s Copy import file (.QBY) in a separate article.

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Securely Upload Data Using an Accountant’s Copy File

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Starting with the 2008 version, QuickBooks Pro, Premier, and Enterprise Solutions users can upload files to Intuit’s Accountant’s Copy File Transfer secure server. Accountant’s Copy1 files are encrypted, so even en route to the secure server they’re protected. From a user’s perspective, the entire process takes place from within QuickBooks. Best of all, it’s free! 2 There are just a few simple steps that are launched from the File->Accountant’s Copy menu. Here’s the sequence in Enterprise Solutions 8.0:

  1. Confirm sending Accountant’s Copy
  2. Set the dividing date
  3. Enter your accountant’s email (twice), your name, and your email
  4. Enter a strong password (twice) and a message to your accountant
  5. Accept the warning to close all data files
  6. Acknowledge that the Accountant’s Copy has been successfully uploaded
  7. You’ll receive an email confirming your successful upload
  8. Your accountant will receive an email notifying him there’s work to be done

It’s not recommended to include the password in the comment area. Instead, communicate the password to your accountant via a more secure method, such as by telephone call.

Like most things, there are a few restrictions to using Intuit’s secure server. Your company file must be under 200 Mb in size. Next, you have to conduct the transfer using a high-speed internet connection.

Accountant_copy_menu.jpg

There are also a few simple things to keep in mind when uploading an Accountant’s Copy to Intuit’s server. You must use a strong password, which means one that contains at a minimum:

  • 1 uppercase character
  • 1 number
  • More than 7 total characters

Note that once you’ve completed uploading your Accountant’s Copy export file, your QuickBooks program title bar will remind you that you have an Accountant’s Copy file outstanding. If your upload session ends before the file transfer is complete, an Accountant’s Copy import file (with a .qby extension) may remain on your computer. It can be safely deleted.

One important consideration is whether the Accountant’s Copy file is the right file choice to work with your accounting support, because there are some restrictions3 on this file type.

An Accountant’s Copy file is the right choice when you want to continue working in your QuickBooks file and your accountant plans to independently perform tasks such as closing a fiscal period. When you create an Accountant’s Copy, you specify a dividing date. Your accountant can make entries on or before that date, and you can make entries after but not on that date. That allows both you and your accountant to work independently. You can continue to view data before the dividing date and attempt to make changes to that data, but when you try to save your changes, QuickBooks will warn you and ignore your changes. Once your accountant has completed his work, you’ll import your accountant’s work into your primary QuickBooks data file. There are restrictions on what your accountant can do in an Accountant’s Copy file, such as working with lists or performing reconciliations. Generally speaking, Intuit has expanded the capabilities of the Accountant’s Copy file over the years when both the client and accountant are working in the most recent version. For example, for 2009 the Accountant’s Copy allows the accountant to perform reconciliations after the dividing date or to modify classes, two things not allowed in previous versions.

Even if your accountant doesn’t plan to change data, an Accountant’s Copy file is still a good choice. For example, if we are producing custom reports for you, we recommend you make and transfer an Accountant’s Copy file using the steps described above and then immediately cancel it by removing restrictions. Canceling the Accountant’s Copy file removes the dividing date restrictions on the file, but it does not delete the file or make it unavailable to your accountant. This allows you to take advantage of free, secure transfer to your accountant without any restrictions on your continued QuickBooks work. Although Accountant’s Copy files are not intended as full backups, the transfer method we’ve described offers a fast and easy way to create a partial off-site backup, which could prove invaluable in disaster recovery.

QuickBooks offers other file types which can also be used to transfer accounting data, such as a portable file (.qbm file extension) and a backup file (.qbb file extension). Like the Accountant’s Copy file, these other file types come with different capabilities and restrictions. It’s important to pick the right file type for the task at hand. Because of the free, easy-to-use, and secure transfer process for an Accountant’s Copy file, it’s a great choice for a wide range of tasks.

We’ve extended this discussion with 3 articles in our QuickBooks KnowledgeBase.

This series of articles covers the full cycle of sending data to us or another accountant and incorporating recommended changes into your QuickBooks company file.

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  1. Specifically, a QuickBooks Accountant’s Copy export file with a .qbx extension. [↩]
  2. Generally speaking, Intuit’s resources of this type are only available to users of versions that aren’t obsolete. If that policy remains unchanged, when the 2011 version is released in late 2010, users of the 2008 version won’t have free transfers any longer. [↩]
  3. Some restrictions depend on other QuickBooks applications you use. For example, Velocity Inventory users running Enterprise Solutions can’t create Accountant’s Copy files. Velocity Inventory is a separate inventory management program that offers serial number tracking, multiple warehouses, and bar code support. [↩]