More on Quickbooks data files

[outwest]

this is a reply from the IRS to the AICPA concerns about the QuickBooks data file requests.

http://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/DownloadableDocuments/IRS_Letter.pdf

Knowing the quality of the books kept by many small business clients, this will send a chill down your spine.

"evaluate internal controls" they have none! "review changes and deletions" we have to do a lot of that to fix the client foul ups. "username of the person who entered or changed" ? Heck that is always "admin"

I guess the up side is that I can point out how sloppy QuickBooks bookkeeping has a steep price, a price much less than have this professional getting you lined out.

[outwest]

More thoughts.

We've been saving the QB file used for a given year's return in with that client's records and source documents. It will have the data cutoff somewhere in the month or two after year end. Seems like that would comply with the IRS desires and yet limit the data available for scanning of later years.

Also, condensing that file as of 11/30 of the prior year would limit the raw data to the year under audit and a couple of months after. I pick 11/30 because they always want the bank statements for the December before and January after the year under audit.

Maybe the ordinary practices of our office will help our clients respond properly. Still doesn't deal with the fundamentally lousy bookkeeping in the file.

[jimmcg]

this is a reply from the IRS to the AICPA concerns about the QuickBooks data file requests.

http://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/DownloadableDocuments/IRS_Letter.pdf

Knowing the quality of the books kept by many small business clients, this will send a chill down your spine.

"evaluate internal controls" they have none! "review changes and deletions" we have to do a lot of that to fix the client foul ups. "username of the person who entered or changed" ? Heck that is always "admin"

I guess the up side is that I can point out how sloppy QuickBooks bookkeeping has a steep price, a price much less than have this professional getting you lined out.

I would be more concerned with the security of "all inclusive" client files once they are in the possession and control of the Service. They do not have a very good track record in this regard. Other than that remember a problem for some is an opportunity for others. If you are so inclined towards client bookkeeping services this is your opportunity to expand and sell this area to your clients...........Result is income enhancement for you if you price it right.

[S T]

And it continues

Data Records electronic - IRS agressively requesting ----This just posted from the WSJ http://online.wsj.com/article/SB1000...?mod=outsidein

Guess now we will see what Intuit and Sage might arrive at as a solution -- in their software programs.

Sandy