What is an Accountant’s Copy of QuickBooks?

iu-1You receive a call or email from your CPA requesting an Accountant’s copy of your QuickBooks. An Accountant’s copy? What is an Accountant’s copy? QuickBooks has the ability to create a file that allows you and your accountant to both work on your books at the same time without losing important data. This is especially important if your accountant is preparing your taxes and needs to make year-end adjustments that will be reported on your tax returns.

Your accountant should advise you of the “Dividing Date” to use when creating the Accountant’s copy and they will only have the ability to modify transactions up that date. On the other hand, you will not be able to change transactions that took place before that date.

Once you have successfully sent them your QuickBooks Accountant’s copy, you can continue to work on your books with limited restrictions. You will not be able to edit or delete existing accounts, reconcile bank accounts or send QuickBooks Assisted Payroll Data or Direct Deposits to Intuit. If you try to do any of those tasks, an aggravating pop-up stating “Accountant’s Changes Pending” will appear. After several pop-ups, your frustration level may start to escalate and you will want to take action. And yes, there is an irreversible solution to make the pop-ups disappear. The key word is IRREVERSIBLE – and possibly expensive – solution, you could remove the Accountant’s  copy restriction.

Frequently, a client will remove the accountant’s copy restriction without consulting their Accountant which can cause problems. If your accountant has performed modifications to your file, these changes will no longer be able to be imported back into your existing QuickBooks file. In some cases, significant changes may have been made by your accountant and the work will have to be re-done on your file at your expense. Your accountant wants to be sure that their work doesn’t impede your day-to-day operations which is why the Accountant’s copy is such a useful tool. Just remember, please consult with them before removing Accountant’s copy restrictions.

Amy Baumann, Senior Accountant