Managing accountant’s changes pending in QuickBooks is a critical process for ensuring that your financial records remain accurate and up-to-date. This comprehensive guide will walk you through each step, from creating an Accountant’s Copy to incorporating the changes made by your accountant. By following these steps, you can effectively manage and integrate accountant’s adjustments, maintaining the integrity of your financial data.

1. Creating an Accountant’s Copy

Before your accountant can make any changes, you need to create an Accountant’s Copy of your QuickBooks company file. This copy allows your accountant to make adjustments without interrupting your ongoing work.

1. Open QuickBooks: Launch QuickBooks and open your company file.
2. Go to the File Menu: Click on ‘File’ in the top menu bar.
3. Create Accountant’s Copy: Select ‘Send Company File’ and then ‘Accountant’s Copy’. Choose ‘Client Activities’ and then ‘Save File’.
4. Specify Dividing Date: Choose a dividing date. This date will allow you to continue working on transactions that occur after this date while the accountant works on transactions before this date.
5. Save the File: Save the Accountant’s Copy on your computer and send it to your accountant.

2. Accountant Makes Adjustments

Once your accountant receives the Accountant’s Copy, they can start making necessary adjustments. These changes are saved in an Accountant’s Changes file with a .qby extension. After completing the adjustments, your accountant will send this file back to you.

3. Receiving the Accountant’s Changes File

When you receive the Accountant’s Changes file from your accountant, save it in an accessible location on your computer.

1. Check Email or Communication: Download the .qby file sent by your accountant.
2. Save the File: Ensure it is saved in a location you can easily find, such as your desktop or a dedicated QuickBooks folder.

4. Incorporating Accountant’s Changes

To incorporate the changes made by your accountant, follow these steps:

1. Open Your Company File: Launch QuickBooks and open your primary company file.
2. Go to the File Menu: Click on ‘File’ in the top menu bar.
3. Import Accountant’s Changes: Navigate to ‘Accountant’s Copy’ and then select ‘Client Activities’. Click on ‘Incorporate Accountant’s Changes’.
4. Locate and Select the File: Browse to the location where you saved the .qby file. Select the file and click ‘Open’.
5. Review Changes: QuickBooks will display a summary of the changes made by your accountant. Carefully review each change to ensure they are correct and relevant to your business.
6. Incorporate Changes: If you agree with the changes, click on ‘Incorporate Accountant’s Changes’. QuickBooks will merge the adjustments into your primary company file.
7. Confirm Changes: Once the changes are incorporated, QuickBooks will update the status, indicating the changes have been successfully integrated.

5. Resolving Conflicts

Sometimes, there may be conflicts between the changes made by your accountant and your ongoing work. QuickBooks will notify you of any conflicts during the incorporation process.

1. Review Conflict Messages: Carefully read the conflict messages displayed by QuickBooks.
2. Make Decisions: Decide whether to keep your current data or accept the accountant’s changes. You can often view the details of each conflicting transaction to make an informed decision.
3. Resolve Conflicts: Follow QuickBooks’ prompts to resolve conflicts. This may involve manually adjusting certain transactions or consulting with your accountant for clarification.

6. Finalizing the Process

After successfully incorporating the changes and resolving any conflicts, it’s important to finalize the process and ensure everything is correctly updated.

1. Backup Your Company File: Create a backup of your company file to safeguard the updated data.
2. Review Financial Statements: Go through your financial statements and reports to verify the accuracy of the incorporated changes.
3. Communicate with Your Accountant: Inform your accountant that the changes have been successfully incorporated. Discuss any discrepancies or further adjustments if necessary.

Best Practices

To streamline the process and ensure accuracy, consider these best practices:

1. Maintain Regular Communication: Keep in touch with your accountant throughout the process to clarify any changes and ensure a smooth transition.
2. Regular Backups: Always create regular backups of your QuickBooks data before and after incorporating accountant’s changes.
3. Document Changes: Keep a record of all adjustments made by your accountant for future reference and audit purposes.
4. Stay Updated: Ensure both your QuickBooks software and your accountant’s version are up to date to avoid compatibility issues.

Conclusion

Managing accountant’s changes pending in QuickBooks is a vital process for maintaining accurate financial records. By following this step-by-step guide, you can ensure that adjustments made by your accountant are correctly incorporated into your primary company file. Regular communication with your accountant, careful review of changes, and adherence to best practices will help you streamline this process and keep your financial data in top shape.