How to Import Changes From an Accountant’s Copy

Collaboration with an accountant often involves exchanging financial data. Accounting software, such as QuickBooks Desktop, facilitates this partnership through a specialized feature known as the “Accountant’s Copy.” This tool allows a business owner to share a version of their company file with their accountant, enabling the accountant to make necessary adjustments and reviews without interrupting the client’s ongoing daily operations. This streamlines financial management, ensuring both parties can work efficiently.

Preparing Your Company File

Before sending your financial data to an accountant, it is important to prepare your company file, especially concerning the “dividing date.” This date establishes a clear separation point: your accountant will work on transactions and adjustments occurring on or before this date, while you can continue to record new transactions for the period after it. This separation allows concurrent work without conflicting entries.

While your accountant works on their copy, you retain full access to your live company file to manage current operations, such as creating new invoices, recording sales, or paying bills. However, it is important to avoid making changes to transactions that fall on or before the dividing date, as this could lead to inconsistencies when the accountant’s changes are later imported.

A crucial preparatory step before any data exchange or import is to create a comprehensive backup of your current company file. This backup protects your financial data during the import process. For users of QuickBooks Desktop Enterprise, temporarily turn off Advanced Inventory features before the accountant’s copy is created and changes are imported, as these features can interfere with data transfer.

Receiving the Accountant’s File

Once your accountant has completed their review and made necessary adjustments to your financial data, they will send the modified file back to you. This file integrates seamlessly with your original company file. Accountants use two main methods to transmit these changes: direct file transfer or the Accountant’s Copy File Transfer Service.

For direct file transfer, your accountant sends a file with a .qby extension, which contains only the changes made, not the entire company file. This .qby file can be sent via email attachment, uploaded to a cloud-sharing service like Dropbox or Google Drive, or transferred using a physical USB drive. Upon receiving this file, save it to an accessible location on your computer, such as your desktop or a designated folder.

Alternatively, accountants may use the Accountant’s Copy File Transfer Service, an integrated feature within the accounting software. This service allows for the secure exchange of the accountant’s changes through Intuit’s dedicated servers. If your accountant uses this method, you will not receive a physical file via email or cloud storage; instead, the changes will be available for direct download within your QuickBooks Desktop application.

Importing the Changes

Importing the accountant’s changes into your main company file is a precise, multi-step process. Begin by opening your QuickBooks Desktop application and ensuring you are logged into the correct company file that corresponds to the accountant’s copy. This ensures the changes are applied to the intended financial records.

Navigate to the “File” menu at the top of your QuickBooks window. From the dropdown options, hover over “Send Company File,” then select “Accountant’s Copy,” and finally choose “Client Activities.” This sequence leads to the import options for accountant’s changes.

You will then be presented with two distinct options for importing: “Import Accountant Changes from File” or “Import Accountant’s Changes from Web.” If your accountant provided you with a .qby file, select “Import Accountant Changes from File.” A browser window will prompt you to locate and select the saved .qby file.

If your accountant used the Accountant’s Copy File Transfer Service, select “Import Accountant’s Changes from Web.” The software will then connect to the secure server and prompt you to download the changes directly. Follow the on-screen instructions, which may involve confirming the download and entering a password provided by your accountant.

After selecting the file or initiating the web import, QuickBooks Desktop processes the changes. The software may display a summary of the modifications before incorporating them. Carefully review this summary, which details adjustments like journal entries, reclassifications, or account reconciliations. Once satisfied, confirm the import, and QuickBooks integrates these adjustments into your company file, often creating another backup.

Reviewing Imported Data

After the import process concludes, QuickBooks Desktop incorporates your accountant’s changes into your company file. While this integration is typically seamless, perform a review to confirm the accuracy of your updated financial records. This verification ensures that all adjustments have been applied as intended and that no conflicts arose with any transactions you may have recorded after the dividing date.

Start by examining financial reports, such as the Profit & Loss statement and the Balance Sheet, comparing them against any reports or summaries your accountant may have provided. You can also review specific accounts or transaction types that you know were subject to adjustment, such as reclassified expenses or newly reconciled bank accounts. QuickBooks generates a PDF report detailing imported changes, found in your company file folder; reviewing this document provides a log of modifications.

Should any discrepancies or questions arise during your review, communicate directly with your accountant for clarification. They can help you understand adjustments and resolve inconsistencies. Additionally, after a successful import, you may need to update your company file’s closing date and password to reflect the newly incorporated changes and maintain security.