Tax Prep. / Client QuickBooks files

[bbrownatl]

Just curious how other practioners handle (or don’t handle) client QuickBooks files. For the most part, I don’t do anything with their files and don’t use the QB Accountants version. However, I’m seeing more and more of a need. I’d be interested to understand how others like the QB Accountants version. Do your client send the Accountants QB file and then you modify as needed (i.e. for tax depreciation, etc.) and return it?

Thoughts / Insights?

As always, much thanks.
Brian

[Gretel]

First of all, no reports coming out of QB handled by clients can be trusted. I think we as accountants have the obligation to either not take anything directly from the client's QB or dig deeper. Maybe QB clients should be advised to give us a handwritten or typed version of their expenses.

For these reasons - a few years ago - I have decided to to all the way with QB and become a certified ProAdvisor, I even went for the Advanced training. This is when I realized how dangerous QB is - for clients and accountants.

As far as the technical aspect of the "Accountant's copy" that can only be used if you have the Accountant's Edition of QB: For some clients I use it, for others I have remote access, for others yet I go to their place because they have dial up and one client brings in his laptop when it is time to do payroll.

[Lion]

Qb

I ask for a QB backup. I'm not going to give them accounting adjustments if I don't do their accounting. I just go from their books to tax accounting once/year on their tax return. So, no need to have an accountant's copy outstanding with their popups reminding them they can't do certain things and preventing me from doing certain things. I also have them give me a printed P&L and BS so I know I'm dealing with the same file with no corruption and have their starting point now so next year I can see if they changed any prior year transactions. For many, for the BS, I simply request their numbers for inventory, loan principal outstanding, ending bank balances, new capital purchases, etc. Usually create Schedule L instead of trying to generate it in QB. I can dig down on the P&L to see where the numbers came from. For my own tax return purposes, can move personal items or misclassified items. Need to learn more about QB since I'm starting to have more clients use it. Have a couple who use Quicken, one for a partnership, too.

[outwest]

What we do..

is request a accountant's copy with a 12/31 cutoff sometime in mid January. That's far enough in that the reconciliation is done and shouldn't have any invoice / bills mods being necessary. When I send back the adjustments, I set the closing password as "dontdoit"
(don't do it). That way when they call wanting the password to change last year, I can tell them "don't do it"

FYI, the 2010 version is much more flexible on the accountant's copy and doesn't get in the way nearly as much as older versions.

[equinecpa]

I was just wondering about this kind of issue when I saw this thread.

I was looking for my clients Quickbooks file for 2008 (yes a late filer). I noticed I have several Quickbooks files for this client (previous years I imagine). I'm wanting to delete these files since they are rather large (yes -I'm finding out that it IS possible to run out of hd disk space). My dilemma is what to keep for support for the tax return. I know I made adjustments to their QB files (which they HAVEN"T booked) in their copy. Do you think a P&L and BS would be sufficient? In an audit situation we'd still have to struggle to reconcile their books to mine....

For customers who will take the time to enter them I provide the adjusting entries...but there are some who will not...

[Gretel]

Do you think a P&L and BS would be sufficient? In an audit situation we'd still have to struggle to reconcile their books to mine....

No, I don't think P&L and BS are sufficient. Well, actually for you it will be. It is the client's responsibility to provide detail report but they need to be advised to print them. I also print a transaction detail at year end. Others might print a detailed GL. I don't know which of the two is more advisable so I am curious to hear other opinions.

[equinecpa]

In thinking about it I guess what I'd like to have on record is a working trial balance -taking me from the clients figures to mine. I don't use the Quickbooks Accountant Version - is the Working trial balance in that any good? What does it show....If I could have something that shows how I got from clients QB figures to Tax Figures...that would certainly be nice.

[geekgirldany]

Like Gretel after working with QBs for years and becoming a proadvisor I think you need to get a backup. There are SO many things that can be entered incorrectly, moved around, etc... I've found that you really can trust just a printed out P&L, Balance Sheet. Atleast buy the Pro version of QBs. I can't say that they accountant version helps anymore or not. I do the remote into their computer to do corrections and journal entries or have them backup the entire file. I get it on Friday they get it back on Monday. Just easier.

If you have clients using QBs then get use to working with the software.

[equinecpa]

I guess I need to clarify - I always get a copy of my clients Quickbooks file. What I'm talking about is what to keep from that file as support for my tax return.

[bbrownatl]

Get QB Pro Version or Accountant Version?

Like Gretel after working with QBs for years and becoming a proadvisor I think you need to get a backup. There are SO many things that can be entered incorrectly, moved around, etc... I've found that you really can trust just a printed out P&L, Balance Sheet. Atleast buy the Pro version of QBs. I can't say that they accountant version helps anymore or not. I do the remote into their computer to do corrections and journal entries or have them backup the entire file. I get it on Friday they get it back on Monday. Just easier.

If you have clients using QBs then get use to working with the software.

I agree with your comments. As a follow up, how do you best work with the client files if different versions of QB are being used? That is where I was thinking the Accountant Version would be helpful since my understanding is that it can import and export to the specific version type. As an example, I have a client who uses the QuickBooks for Mac version and just sent me his file. I have the Pro Version and can import it but I can't send it back to him in a format that he can then restore back into his QB for Mac. Any recommendations or other insight appreciated.

Thanks,
Brian

[JoshinNC]

We tell them to throw QB in the trash and let us do it

If they insist on doing themselves on QB I tell them that at the end of the year I want all thier bank statements and we will redo the books on our system (Peachtree) and charge them by the hour at our full rate ($125 per hour). QB is CRAP and will allow them to put anything they want anywhere they want.

Did I mention QB is CRAP?!!

[geekgirldany]

As an example, I have a client who uses the QuickBooks for Mac version and just sent me his file. I have the Pro Version and can import it but I can't send it back to him in a format that he can then restore back into his QB for Mac. Any recommendations or other insight appreciated.

Thanks,
Brian

Yeah you would need the accountant version for the that. I have a customer that uses QBs on Mac. I have to covert it to a Windows file when I get it and then back to a Mac file. Quite a pain. If there is anyway you can get them to put QBs on a Windows machine DO IT! QBs on Mac has very little support and is pretty bad.

[taxxcpa]

Qb

Most non-accountants get some pretty weird figures when they use QB or Peachtree. One client had a huge negative cash balance. A lot of them enter sales tax payable and Fed tax payable, but when they pay it they charge it to expense rather than the payable.

Sometimes they get the income and expense about right, but you could never use the figures they show on the balance sheet: huge negative figures for inventory, cash, accounts receivable, etc. just don't look right to me.

[bbrownatl]

How about the QuickBooks remote access?

As a workaround, I've considered the QuickBooks remote access. Actually, I just signed up for a month to check it out. Very inexpensive. Again, just an alternative to getting the QB file, modifying, and returning. Given the comment above regarding the hassle with the QB Mac version, this might actually work pretty well. Again, anyone with experience with it, I'd be interested to hear how well it worked (or not worked).

Thanks again,
Brian

[MariaR08]

On a side note... I've actually been interested in learning QB a lot more than I do now (just picked up on how to create and enter a few transactions). I've noticed the QB ProAdvisor program offered by Intuit and was thinking about it. Do you guys recommend it? Any other "class" or way to learn QB before doing the ProAdvisor program? Or should I just jump into it?

Maria