QBX

What Are the Service Changes for Exchanging an Accountant’s Copy In QuickBooks 2011?

Chief Mechanic · September 17, 2010 ·

Beginning with QuickBooks 2011 and Enterprise Solutions 11.0, accountants and their clients that need to exchange Accountant’s Copy files via Intuit’s secure servers will incur a fee of $9.95 per year. Users can continue to exchange files using email other than QuickBooks Email or using a physical device, such as a USB drive.

Users of QuickBooks 2010 and earlier (including Pro, Premier, and Enterprise Solutions 10.0) can continue to use Intuit’s secure servers free of charge subject to Intuit’s service discontinuation policy.

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How Does an Accountant Work With Client Data In an Accountant’s Copy File?

Chief Mechanic · September 12, 2010 ·

The Accountant’s Copy file 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 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.

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.

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

We’ll pick up where our blog article left off: an email has been received advising that a client has sent a file, and it’s ready for download by clicking on a link provided in the email. Clicking on that link will invoke your default web browser, and prompt you to save the file to a location on your local hard disk.

Click Save and be sure to write down the location you specify.

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

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
Convert it to a company file (.QBW), which will not allow your changes to incorporated into the client’s company file

The method you choose depends on your circumstances. Normally, you’ll want to choose the first method so that you can transmit only your changes to your client, who can then automatically incorporate those changes into his company file. If you opt to convert the Accountant’s Copy export file (.QBX) to a company file (.QBW), you’ll have to replace your client’s company file. This choice is only appropriate when the client will not record any transactions whatsoever while you perform you work. Otherwise, those transactions will be lost when you replace the company file.

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. The size of the ultimate file to be sent to a client and the ease with which this can be accomplished are very important considerations when choosing how to use a Accountant’s Copy export file.

Method 1 – Convert a .QBX to a .QBA File

This is the preferred method to work with client data because of three principal benefits:

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

From within QuickBooks, click File->Open or Restore Company…, select Convert an Accountant’s Copy Transfer File, and click Next. Alternately, in some editions of QuickBooks you can accomplish the same thing by clicking File->Accountant’s Copy->Open & Convert Accountants Copy Transfer File to bypass the first screen below.

You’ll see an overview of using the Accountant’s Copy export file. Click Next two times. If this task has been performed before and you opted to bypass these informational screens, you won’t see them at this point.

Since the Accountant’s Copy export file (.QBX) was encrypted, you’ll be prompted to enter the password. This password was entered by the company when it generated the export file.

Once you’ve supplied the correct password, you’ll be prompted to name the Accountant’s Copy working file (.QBA). This working file, as its name suggests, will record your changes. Later, when your work is complete, only those changes – not the .QBA file itself – will be transmitted back to the client company. If you need to close QuickBooks or close this file, you’ll re-open the Accountant’s Copy working file (.QBA) to resume your work for this client.

While you work in an Accountant’s Copy working file (.QBA), your QuickBooks title bar will display that you’re working in an Accountant’s Copy working file and the dividing date entered by the client company when the Accountant’s Copy export file was created.

Method 2 – Convert a .QBX to a .QBW File

This method is not the normal method for an accountant to complete work that will transmitted back to the client and automatically incorporated into the client firm’s company file. Nevertheless, under certain circumstances this method can provide valuable benefits. If your client will not record any transactions in QuickBooks and you can easily replace the company file in its entirety, you’ll be able to work on the client’s data without restrictions that apply to Accountant’s Copy files. Moreover, if your client’s company file has been damaged and more suitable backups do not exist, a .QBX file converted to a .QBW file can sometimes provide an effective replacement for your client’s .QBW file. Before opting to convert a .QBX to a .QBW, be sure that you have a practical method to replace your client’s company file and that your client will not record any transactions whatsoever. When you replace the client’s company file with your converted file, all transactions recorded by your client will be lost.

To convert a .QBX to a .QBW file, click the File->Utilties->Convert Accountants Copy to Company File (.QBW)… menu choice.

QuickBooks Accountants Copy Convert To QBW

Because this method should only be employed after close coordination with the client regarding who will be working on the company file, you’ll receive this advisory before continuing:

QuickBooks Accountants Copy Convert To QBW Warning

QuickBooks will proceed to convert the Accountant’s Copy export file (.QBX) to a regular company file. You can now use it like any other QuickBooks company file.

Whichever method you choose to work with an Accountant’s Copy export file (.QBX), once your work has been completed, you’ll need to transmit it to the client. If you use an Accountant’s Copy working file (.QBA), QuickBooks users another file type, the Accountant’s Copy import file (.QBY) to send only your changes to the client. In a separate article, we describe the procedures for creating an Accountant’s Copy import file (.QBY) and sending it to a client, as well as considerations to send and replace a client’s company file.

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How Does a Client Import an Accountant’s Work From an Accountant’s Copy Import File?

Chief Mechanic · September 12, 2010 ·

To import an accountant’s work prepared in an Accountant’s Copy import file (.QBY), the first step is to receive and save the .QBY file on your computer. Given the small size of most .QBY files, this file is normally transmitted via email.

For background, use of an Accountant’s Copy in QuickBooks is an easy way for a client company to transfer data to a third-party (such as an accountant), have the accountant make changes and return just those changes, and incorporate them with the company file subject to the client’s review. 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. In separate articles, we’ve reviewed how an accountant works with client data received from an Accountant’s Copy and returns that data to a client.

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

Here’s a sample message with an Accountant’s Copy import file (.QBY) attached. In Outlook, right click on the attachment, and choose Save As… in the drop down menu. Specify a location, and save the file. Write down the location you specify so you can quickly locate the file when you return to QuickBooks. The exact steps to save an email attachment may vary slightly in your own email client.

QuickBooks Accountants Copy Client Email

Once you’ve saved the file, return to QuickBooks. Click the File->Accountant’s Copy->Import Accountant’s Changes… menu selection. This menu selection will only be available if you have an outstanding Accountant’s Copy.

You’ll see the Incorporate Accountant’s Changes window. Note that these changes are not yet incorporated – you’ll have a chance to review them first.

QuickBooks Accountants Copy Incorporate Changes

In this window, you can:

read the note from your accountant regarding changes made
review a list of those changes
print or save a PDF report of those changes
incorporate those changes into your company file

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 your accountant has recorded more than a few transactions, you can also click the Expand All and Collapse All buttons to perform those tasks on all of the transactions in the .QBY file. At this point, the changes are described as not yet incorporated into your company file. We’ve attached a sample report in PDF format showing the output at this stage.

After completing your review, click the Incorporate Accountant’s Changes button. You’ll see a message that QuickBooks needs to close all windows. Click Ok.

QuickBooks Accountants Copy Incorporate Changes Close All

Before incorporating the changes, as a precaution QuickBooks forces you to perform a backup. To proceed and backup your data, click Ok.

QuickBooks Accountants Copy Incorporate Changes Backup

QuickBooks will prompt you to specify a file location and name to save the backup file. When the backup is successfully completed, click Ok. QuickBooks will proceed to incorporate the changes recorded in the .QBY file.

QuickBooks Accountants Copy Incorporating

When the changes have been incorporated, you’ll see a window reflecting the successful result.

It’s strongly recommended that you click Print or Save as PDF to document the changes made. If you click the Close button before producing a report of the changes, you’ll be cautioned to produce a report first. Click Cancel to return to the previous window to print or save a report. If you ignore the caution and click Ok, you’ll lose any chance to produce a report of the changes that were just incorporated.

QuickBooks Accountants Copy Print Caution

To document your work, click either the Print or Save as PDF button. At this point, the changes recorded in in the Accountant’s Copy have been sucessfully incorporated into your company file. We’ve attached a sample of the PDF produced by QuickBooks after this step.

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

Chief Mechanic · September 12, 2010 ·

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:

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

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
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.

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:

compressing the file with a file compression utility,
using a file service that isn’t subject to the limits imposed by your internet service provider on email, or
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

Chief Mechanic · September 24, 2008 ·

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:

Confirm sending Accountant’s Copy
Set the dividing date
Enter your accountant’s email (twice), your name, and your email
Enter a strong password (twice) and a message to your accountant
Accept the warning to close all data files
Acknowledge that the Accountant’s Copy has been successfully uploaded
You’ll receive an email confirming your successful upload
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.

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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Specifically, a QuickBooks Accountant’s Copy export file with a .qbx extension. [↩]
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. [↩]
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. [↩]

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