Release of Client Bookkeeping Files

[ledger@centurytel.net]

This is probably out of the purview of this forum, but I would like some input as to what others feel is appropriate. I have a client who is taking his accounting & payroll to another accountant who has requested a full backup of the work I have done in QuickBooks for the past 3 years, which basically allows him to pick up where I left off and potentially change, whether materially or otherwise, work that I have done. Fortunately, until now, I have not had to deal with this, but I have a few issues with the potential for changes to my work. Does anyone have a policy or procedure that addresses this issue or words of wisdom to impart? My first thought was to provide documents in paper form which would allow the new accountant a starting point without the ability to change my initial transaction without a proper journal entry. Thoughts?

[spanel]

This is probably out of the purview of this forum, but I would like some input as to what others feel is appropriate. I have a client who is taking his accounting & payroll to another accountant who has requested a full backup of the work I have done in QuickBooks for the past 3 years, which basically allows him to pick up where I left off and potentially change, whether materially or otherwise, work that I have done. Fortunately, until now, I have not had to deal with this, but I have a few issues with the potential for changes to my work. Does anyone have a policy or procedure that addresses this issue or words of wisdom to impart? My first thought was to provide documents in paper form which would allow the new accountant a starting point without the ability to change my initial transaction without a proper journal entry. Thoughts?

I would print out the 3 years, for a fee of course. Especially since the prior client is dumping you.

Chris

[ChEAr$]

AGree with Chris except would not charge a fee. After all, you were employed by the client to keep his books, therefore he is entitled to paper copy of what he has paid you for.

He HAS paid you, right?

[AZ-Tax]

Hmmmmmm

If I was the client or soon to be ex client, I would gladly pay for the .QBB backup file vs a hardcopy file but then again clients do not always think reasonably. None of my bookkeeping clients have yet to exit but I probablly should get a policy into place if and when it happens. Is it a standard in the bookkeeping industry to give the client a .qbb file? Is the .qbb file included in the fees paid by the client?

[Acownt4it]

agree

I would print out the reports (including the GL) and give them to the client free of charge when their account is paid in full. I would not give them a copy of the QB files.

[Jiggers]

You didn't give your client a copy of the work done monthly/yearly?

If you did, I would tell the client to give him his copies.

I would not give him a copy of the QB file. You paid for the QB program, correct? I don't use QB, but I do use another similar type program. I wouldn't give my soon-to-be ex-client a copy of that backup from that program. Even if he did buy the software so that he could download what he wants me to give him.

If your client can't produce the hard copies, you will be glad to, with payment in advance. I would charge per copy plus time to make those copies.

[geekgirldany]

I also would not hand over the quickbooks file. That is also why I get an engagement letter signed every year saying I will not. I will provide hard copies of the information if paid for it.

[Roberts]

JMO but I think it depends on how you were paid and your arrangement on whether the Quickbooks files are yours or theirs. In almost any case, it is the clients file legally unless you had them sign away their rights to it. Much like working papers, if you were paid by the client to produce the work, they have the right to receive a copy.

Let's look at it another way, did they provide you with a copy of the Quickbook files to begin with? If so, it's their file.
Did you charge them an initial fee to set up the business on Quickbooks? If so, they paid for the file production, why shouldn't they receive a copy?
Did you charge them a fee to enter the data? Why is it not theirs since they paid for the production?

Contact your state accountancy board to see if they have a predetermined ruling on this. IMO you are a bookkeeper and the clients paid an hourly rate for BOOKKEEPING, not just printing off the final monthly report. If they did all the bookkeeping and all you did was print off the final monthly reports - then that's all they are entitled to receive.

[erchess]

Interesting Thread

The only reason I can think of why you would NOT want to give up QB data would be the fear that someone will make changes to your work, get in trouble, and try to say that you did what you did not do. It would seem to me that your protection against that is your copy of what you did. If you have a bad feeling about the client you could even take the extra step of printing a copy of your work and getting your client to sign a Jurat specifying that THIS is what you prepared for him or her. They would initial the pages and sign the Jurat.

I tend to agree that absent a specific provision in your engagement letter or other oral or written contract QB data would be like any other work product and would probably belong to the client. No one as far as I know is restricting us from keeping even multiple copies of all we do provided we have the copies secured. I am under the impression that we clearly owe the client one copy of everything and if we charge for a replacement copy we better not charge more than our expenses and the normal rates for our time and even then it helps to have a prior written agreement that these charges will apply.

[taxmandan]

I would give them the .QBB file, I have backups, archives, etc. of my work if there is any problem later. We picked up a new bookkeeping client this year and, unlike your work, the previous (non)bookeeper didn't know what she was doing and it took a bunch of hours to fix the records. Without the .QBB file, it would have been near impossible to figure out what she had done and fix it.

Besides not giving them the QB file seems petty and unprofessional to me. So they're leaving you, be nice and cooperate like the pro that you are.

[luke]

agree

I TOTALLY agree with Jiggers! If my clients wanted a copy of MY proprietary accounting software data files they wouldnt be entitled to it! Why is QB any different! My clients get copies of all reports and tax forms so why do they need MY data files?

[Davc]

Make certain the company is no longer associated with your payroll account before giving them a copy.