QuickBooks Accountant Copy: Create & Send with Ease

Business owners like yourself know that running a business & managing finances goes way beyond just balancing the books; it also entails ensuring accuracy in the financial data by keeping your accountant in the loop. QuickBooks Desktop helps you maintain fiscal documentation to a meticulous extent during tax submission or a yearly audit. In addition to its precise bookkeeping, it also helps you create an Accountant’s Copy of your company file, which can be shared with an accountant securely for a review and to make adjustments in the financial records.

In case you have any doubts about the accountant’s copy or the correct method to create it using QuickBooks, this blog will walk you through with every detail regarding them. Continue reading to learn about the stepwise procedure to create accountant’s copy, how to send an accountant’s copy of QuickBooks, and the limitations to it. Let’s get going!

What is an Accountant’s Copy of QuickBooks Company File?

A QuickBooks Accountant copy is a version of your company file that you can share with your accountant to review for any discrepancies and ensure the financial records are up-to-date with the tax tables. This file has a .QBX extension, which can be shared through the Accountant Copy File Transfer Service (ACFT) offered by QuickBooks free of cost with the subscription. The accountant can then review the file, make any necessary modifications to it, and send it back to you.

You can then merge the Accountant Copy with your original company file to import the changes. The good thing about all this is that your work isn’t disrupted, and you can keep utilizing your company file to input transactions like you used to. Some other applications of creating a QuickBooks accountant copy involve:

• Streamlined Collaboration: QuickBooks allows you and your accountant to work concurrently on the company file without interrupting the business operations. You can keep adding new transactions to the company file, and the accountant can make any changes deemed necessary. You can import the changes in the company file once your accountant is done.
• Data Security: You need not worry about the confidentiality of your company file, as Intuit servers are used to share and hold your financial data during the transit. They are SSL encrypted and provide a seamless data flow.
• Data Accuracy: Creating and letting an accountant review your financial records helps you ensure your financials are up-to-date and accurately compliant with the legal tax tables.
• Efficiency: A QuickBooks accountant copy saves you a lot of time and prevents you from periodically checking with your accountant for the changes. Instead, you and your accountant can work independently, and then they can send you the final reviewed file, which can be merged with the original company file to enroll the changes.
• Effective Management: Letting you and your accountant work distinctly is a great way of managing resources and keeping the records accessible whenever needed.

We think that is all the necessary knowledge for you on the QuickBooks Desktop accountant copy you need for business operations. Now, let’s directly move to the next section of our blog, which describes the correct method to create a QuickBooks Accountant Copy and share it.

Stepwise Procedure to Create Accountant’s Copy in QuickBooks Desktop

You have no reason to worry, even if this is your first time creating a QuickBooks Accountant Copy. We tried to keep it as simple as possible to shield you from any setbacks or confusion. Just follow the procedure step-by-step as given below to create and send Accountant’s Copy in QuickBooks easily:

Step 1: Turn Off Advanced Inventory Features

This step is only applicable if you are a QuickBooks Enterprise user and you use Advanced Inventory features (Barcode Scanning, Warehouse Tracking, FIFO, etc.). QuickBooks Desktop Pro or Premier users do not need to apply this step, and also skip it if you do not use Advanced Inventory:

1. Go to your QuickBooks Edit menu and click Preferences in the list.
2. Select Items & Inventory on the left and move to the Company Preferences tab.
3. Click the Advanced Inventory Settings option and ensure the checkboxes of all the features that you use are unmarked. 
4. Start by turning off Multiple Inventory locations.
5. Then, go to Serial/Lot numbers and unmark the Enable Lot or Serial Numbers checkbox.
6. Go to the FIFO tab and uncheck Use FIFO Starting.
7. In the same way, navigate to the Barcodes tab and clear the Enable Barcode Scanning checkbox.
8. Tap OK in the Advanced Inventory Settings window after verifying all the feature checkboxes are unmarked.
9. Hit OK in the Preferences window, as well as the warning message that follows.

Here’s what happens when you turn off the following features:

• Multiple Inventory Locations: 

QuickBooks hides all site-related fields, columns, and reports from the interface and stops assigning inventory-related transactions. However, it still maintains all site-related data, but you can’t see or access it.

• Barcode Scanning: 

QuickBooks saves all the barcodes in your company file, and they reappear in the data file when you turn the feature back on.

Note: Remember to do this when you turn off the Multiple Inventory Locations. This’ll help you avoid problems in the future:

• Put all the inventory-related transactions (since you turned it off) on a temporary site, and then transfer the inventory to the actual site when you turn it back on to continue tracking inventory at multiple locations.

Step 2: Create an Accountant’s Copy in QuickBooks

 Here’s how to make an Accountant’s Copy in QuickBooks.

1. Launch your QB Desktop and access the File menu.
2. Click the Send Company File option and go to the Client Activities option.
3. Click Save File, followed by Next, and select the Accountant’s Copy option.
4. Hit Next again and set the dividing date.
5. Finally, tap Next to save the .qbx file on your computer.

Step 3: Send Accountant’s Copy in QuickBooks

There are two ways of sending the QuickBooks Accountant’s Copy (.qbx) to your accountant:

Send QuickBooks Accountant Copy using USB, Email or Cloud Service

You just have to send the .qbx file you just created to your accountant. You can use any storage device (USB, portable HDD, etc.), send it as an email attachment, or use a hosting/cloud service to share the Accountant’s Copy file.

Send QuickBooks Accountant Copy using Accountant File Copy Transfer Service

Apply the following steps to send an Accountant Copy using AFCT in QuickBooks:

1. Access your QB’s File menu and select the Send Company File option.
2. Navigate to the Accountant’s Copy option and move your cursor over Client Activities.
3. Choose the Send to Accountant option and tap Next.
4. Select Accountant’s Copy and click Next.
5. Fill in the dividing date and tap Next again.
6. Mention yours as well as the accountant’s email address and create any desirable password for the file.
7. Click Send whenever you are ready.

Note: The accountant will receive an email from Intuit containing a link to the file you sent. Your accountant will have to download the file within 2 weeks using the password you created.

Step 4: Turn on Advanced Inventory Features

After you create and send the QuickBooks accountant copy, you can turn the Advanced Inventory features back on. Here’s how:

1. Open QuickBooks and access its Edit menu.
2. Select the Preferences window and tap Items & Inventory in the left panel.
3. Go to the Company Preferences tab and mark (✔) the Inventory and Purchase Orders are active checkbox.
4. Choose the Advanced Inventory Settings option and mark (✔) all the features (Barcode Scanning, Multiple Inventory Locations, FIFO, etc.) checkboxes you unmarked earlier to turn them off.

Note: If the Advanced Inventory Settings become unavailable, and you can’t interact with it, you’ll have to sync your QuickBooks Desktop license data using these steps:

• Go to the Help menu in your QuickBooks Desktop and select Manage my license.
• Click the Sync License Data Online option.

Step 5 (Conditional): How do I Cancel or Resend an Accountant’s Copy?

You’ll have to remove the Accountant’s Copy restrictions to cancel the file you sent. It is possible that the Accountant’s Copy you sent got damaged, or you want to resend it due to other reasons.

An “Accountant’s Changes Pending” message appears beside your company file name as soon as you send the Accountant’s Copy and remains there until you import the changes. You might also be restricted from performing some functions to avoid any issues with the accountant’s changes. Here’s how to cancel the accountant copy you sent and get rid of the reminder:

1. Go to the File menu in your QuickBooks Desktop and click the Send Company File option.
2. Choose Accountant’s Copy and tap Client Activities.
3. Click Remove Restrictions and select the Yes, I want to remove the Accountant Copy restriction option.
4. Hit OK.

Note: You can also use this method if your accountant asks to resend the accountant copy. Remember, once you apply the above steps to nullify the Accountant Copy you sent, it can’t be undone.

The next section of our blog explains how accountants can send the file back after making the appropriate changes.

How to Export Accountant’s Changes in QuickBooks (For Accountants)

Note: This section is strictly for Accountants. Users/Clients can skip this section.

If you are an accountant working on a QuickBooks Accountant’s Copy file sent by your client, you must check out the following steps to share the file back to your client. The file will have a .QBY extension and can be shared using a storage device/hosting, or you can use the Accountant File Copy Transfer service. Here’s how you can export accountant’s changes in QuickBooks Desktop:

1. Access the File menu of your QuickBooks and select the Send Company File option.
2. Choose the Accountant’s Copy option and click View/Export changes for Client. Single-click ‘＋’ to review all the changes you made to the client’s company file.

Optional: Tap Save as PDF to save the changes, or click Print to print a hard copy.

If you want to Share the File using a Storage device (USB), Email, or Hosting Service:

1. Click the Create Change File option and choose any preferred location to save the file (.qby) on your system. 
2. Select Save and click OK.
3. Once the file is saved, you can move it around via any means. 

OR

If you want to Directly Share the File with your Client using the Accountant File Copy Transfer Service:

1. Select the Send Changes to Client option and fill in your name and email address along with your client’s email address.
2. Choose the Notify me when the client imports the changes option if you would like to know when your client imports the changes and tap Send.

The next section of our blog describes the procedure to import the accountant’s changes in QuickBooks Desktop.

How to Import Accountant’s Changes in QuickBooks (For Clients)

You’ll receive the QuickBooks accountant’s changes as a .qby file if you use a USB/hosting service, or directly through the web if ACFT service is used. You need to import the accountant’s changes to automatically update your company file. Here’s how:

Step 1: Backup your QuickBooks Company File

You must create a backup of your entire QuickBooks data to ensure that you have a recovery option in case anything goes wrong while importing the accountant’s changes. Here’s a reference article to help you create a backup of your QuickBooks Desktop.

Step 2: Import the Accountant’s Changes

Do not forget to turn off the Advanced Inventory features like before if you are a QuickBooks Enterprise user. Once done, apply the following steps:

1. Open your QuickBooks Desktop and access the File menu from the top.
2. Click the Send Company File option and go to the Accountant’s Copy option.
3. Select Client Activities and click the Import Accountant Changes from File if you have the .qby file (sent by your accountant) saved on your system.

OR

1. Click the Import Accountant Changes from Web option if your accountant used the Accountant File Copy Transfer Service (ACFT) to send the changes.
2. Click the Incorporate Accountant’s Changes option if you are sure you want to make the changes in your company file.
3. Click Close if you think the new changes might conflict with your company file, and you do not want to apply the changes (contact your accountant immediately if you find any discrepancy).
4. Tap OK.

Step 3: Configure Closing Date & Password

If you think your reports can get affected, you can set a closing date to avoid changing the entries recorded before that date. Here’s how:

1. Launch your QuickBooks Desktop and sign in as an administrator.
2. Click the Company option and select the Set Closing Date option.
3. Fill in the Closing Date along with a Closing Date Password and tap OK.

Conditions for Creating and Sending Accountant Copy QuickBooks Desktop

You must know some of the limitations that both the client and accountant can face while using a QuickBooks accountant copy and the modifications that can be done with the data:

Client Limitations

These limitations are described keeping in mind that the accountant changes are pending, and you try modifying transactions after the dividing period:

Can’s:

• Enable payroll
• Edit list info
• Add new entries in the lists
• Add, create or erase transactions
• You can reconcile your accounts without erasing the transactions before the dividing date, but the accountant can undo it.

Can’t:

• Modify or erase existing accounts
• Send Direct Deposits or Assisted Payroll data to Intuit.

Accountant Limitations

QuickBooks Desktop might stop you from modifying transactions or info if it can raise a conflict with your client’s data. You might see the following while working on the accountant copy (.qba):

• The changes file that will be sent to the client will include the info you see in the highlighted area.
• You can modify the info in the Non-highlighted area, but it isn’t necessary that the changes will be included in the change file you send to the client.

Lists

Can:

• Print 1099 and 1096 forms in back dates
• Create, modify & print 941, 940 and W-2 forms
• Develop new reports
• Add Accounts
• Add new items to all the lists (Customer, Class, Employee, Fixed Asset Item, Item, Other Names, Vendor, Sales, Tax Code) apart from the inactive Sales Tax Code List.
• Edit items in the Vendor List as well as the Item List without changing the Item Type.

Can’t:

• Transfer data from web connector or Excel
• Buy additional licenses
• Utilize budgeting tools
• Utilize Online Banking services
• Add Routing number
• Add, edit, erase or void build assemblies
• Change an item type
• Erase or merge existing accounts
• Enter vehicle mileage

Transactions

Can:

• Add, erase or edit most type of transactions dated before or on the dividing date and after the dividing date too
• Modify account or tax info
• Change preferences temporarily
• Add adjusting entries
• Add a completely new account

Can’t:

• Add, erase or edit the received payments or the sales tax payments
• Add or use credit card processing
• Create estimates & sales orders
• Modify the payments made by Credit Card
• Transfer money between accounts
• Add or modify the routing number

Payroll

General Points:

• Customers can process payroll tax forms in the Accountant’s Copy.
• Quarterly, monthly & yearly tax forms are available in the Accountant’s Copy identical to the original QB Desktop data file.
• The info on payroll tax forms processed or printed by the accountant won’t be included in the changes file, as no modification is made to employee records or reports.
• Customers should check the paid-through dates before they e-file or process a transaction.

Can’t:

• Add, edit or modify payroll items
• Create, add, modify or void paychecks
• Add, erase or modify timesheet data
• Create, modify, erase, or void Direct Deposit checks for 1099 vendors
• Transfer Assisted Payroll Data or Direct Deposits to Intuit

Final Remarks

This concludes our article, sharing insights into how to create an Accountant’s Copy of your company file in QuickBooks and the considerations to keep in mind. We have incorporated the perspectives of both you and your accountant to make it easier to understand the process that occurs at both ends. The blog gives the procedure to export/import the Accountant’s Copy for both clients and accountants, highlighting the potential limitations too. We hope the blog serves as a valuable guide for creating and sending a QuickBooks accountant copy and plays a key role in supporting you with steady business growth.

FAQs

How does the Accountant’s Copy process work?

You can understand the entire QB Accountant’s Copy process by going through the workflow. A user (client) creates an Accountant’s Copy of the company file using QuickBooks and shares it with the accountant either manually via USB/email or directly sends it using the Accountant Copy File Transfer Service (ACFT), where Intuit servers are involved to store and share the file. The accountant receives the file, makes any required changes to ensure it is tax compliant & up-to-date, and then sends it back to the client. The client then reviews the changes and merges them into the original company file automatically using QuickBooks.

Can I still work on my QuickBooks file while the accountant has the copy?

Indeed, that’s a great advantage of the QuickBooks accountant copy. It allows you to work on your company file without any interference from the accountant or vice versa. After the changes are made, you can merge them into the company file without disrupting the financial operations.

What is the dividing date in the QuickBooks accountant copy?

Think of dividing the date as a cut-off in the company file to keep you and the accountant separate. Once you assign a dividing date and send the QB accountant a copy, your accountant will review & modify all the transactions before the date, whereas you can keep adding new entries after the date. Once your accountant is done, you can import the changes to your company file, and the data will be merged.

What happens to my QuickBooks data after I import the accountant’s changes?

After you import the accountant’s changes, all the modifications made by your accountant are merged into your company file. This makes your financial data more accurate and eliminates any discrepancies that would be problematic during tax submission.

What file format is the Accountant’s Copy in?

Here are the file extensions used for QuickBooks Accountant Copy:

• .QBX: This is the file format when you send it to the Accountant.
• .QBA: This is the file format when the accountant downloads it into his system and starts working on it.
• .QBY: This is the file format when the accountant exports the file to you after making the changes.

For more info, check all the File Extensions used in QuickBooks Desktop.

What if the Accountant’s Copy is too large to email?

You can directly send the file using the Accountant Copy Transfer Service, which uses the Intuit servers to store and transfer the files, or you can use a USB if your accountant’s location is accessible to you.

Where is the Accountant’s Copy file saved on my computer?

C:\Users[YourUsername]\Documents\QuickBooksXX or C:\Users\Public\Public Documents\Intuit\QuickBooksXX are the default locations.

However, you are asked to choose a location when you create QuickBooks Accountant Copy. If you still can’t find it, use the search bar to look for a file with a .qbx (file sent) or .qby (file received) extension.