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QuickBooks – How the Accountant’s Copy Feature works

MYOB Quickbooks Bookkeeping - How the Accountant's Copy Feature works

Quickbooks Accountant’s Copy

QuickBooks allows users to create an accountant’s copy of the company’s data files, allowing the practitioner to review and adjust prior period data while the client continues to process transactions in the original file for the current period. In QuickBooks Premier-Accountant, practitioners can open their client’s previous year’s QuickBooks data files as well as the current year’s QuickBooks data files using the accountant’s copy feature and make changes. The client will be able to import the changes back into their previous year’s QuickBooks data file even though the practitioner used a newer version of QuickBooks. The client sets the dividing date that determines when the practitioner can edit transactions in an accountant’s copy. After adjusting the accountant’s copy, the practitioner can export the changes to a new file and the client can then import the practitioner’s changes into the original data file.

Note: In other file types such as backup (.qbb) or portable company files (.qbm) there is no backward compatibility. Therefore, once the file is open in the newer version of QuickBooks the file can no longer be read with the older version of QuickBooks.

With an accountant’s copy, a practitioner can—

  • Add new accounts to the chart of accounts and edit existing account names and numbers.
  • Delete existing accounts from the chart of accounts.
  • Record and memorize general journal entries. (Although the memorized transaction will not get back to the client.)
  • Post general journal transactions to account registers.
  • Adjust inventory quantities and values.

The accountant’s copy has its limitations, however. Practitioners may not perform the following activities using the accountant’s copy:

  • Enter or memorize transactions other than general journal entries or account register postings after the dividing date
  • Reconcile bank accounts in any period that ends after the dividing date. (The practitioner can reconcile periods ending after the dividing date if it helps with their work, but those changes will not be sent back to the client.)
  • Use the “Adjust payroll liabilities” feature
  • Edit or delete existing payroll items
  • Add new items to the payroll item list
  • Delete existing inventory part items

Note: The practitioner and the client generally have to use the same version of QuickBooks for the accountant to make changes using accountant’s copy. However, in QuickBooks Premier-Accountant, practitioners can open their client’s previous year’s QuickBooks data files as well as the current year’s QuickBooks data files using the accountant’s copy feature and make changes.

For  more on HOW to

  • Create the Accountant Copy
  • Work with the Accountant copy
  • Create an export file
  • Import the changes
  • Note client restrictions

See the full explanation at http://www.nacpb.org/tip/quickbooks.cfm


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Federal Budget Bus Tax – Loss carry-back “trap” could mean many businesses fail to get tax refund

Business Tips websites small business Tax Budget - Small Bus Tax

Budget – Small Bus Tax

Tax experts have warned of yet another hurdle for businesses to overcome in attempting to claim the loss carry-back tax refund announced in last week’s federal budget.

Many businesses have already found they are ineligible to claim the loss carry-back measure because they are set to make a loss rather than a profit this financial year or because they are not structured as a corporation. 

Mark Molesworth, tax partner at accounting firm BDO, told SmartCompany the idea behind loss carry-back was if a business makes a profit and pays tax in 2012 it can carry up to $1 million of losses back and get a refund on the tax paid.

“That general statement is subject to a restriction in that companies will only be able to get that refund if they have sufficient franking credits in their franking account in the 2013 year,” says Molesworth.

“The way a company puts franking credits in its franking account is by paying tax and those franking credits are reduced or removed from the franking account when the company pays a franked dividend.

“The issue is that for many small businesses the owners need to take the profits each year in order to be able to live. If they have already paid the profits from 2012 to themselves as a franked dividend then when it comes to 2013 and they want to carry back its losses, they will not get the refund tax because there will be no franking credits in its franking accounts.

“It is certainly a trap in relation to the loss carry-back measure.”

Molesworth says business owners need to talk to their accountants about the franking credit requirement.

“My message would be to those people in small business who may be eligible for loss carry-back, they need to plan how and when they pay their dividends to themselves,” he says.

“Each circumstance is going to be individual, there is no panacea but it is good practice for companies to think about how they pay their dividends and frank them anyway.”

Molesworth warns that many businesses are unaware of the requirement for franking credits.

“When I speak to people about it they are not aware of the limitation, I don’t think it I has been covered in the media.”

Robert Jeremenko, senior tax counsel at the Tax Institute, agrees with Molesworth that one of the limitations on the loss carry-back scheme is that the amount of loss that can be offset against a previous year’s profit is limited to balance in franking account.

“The reason the Business Tax Working Group has suggested that, and the government has adopted it, is that they describe the complex interaction with the franking deficit tax, which applies if your franking account goes into negative; which would result in a lot of money churning back and forwards and create extra compliance costs,” says Jeremenko.

“What that may mean is that some companies may reduce the dividend level paid out to ensure they have a franking credit reserve and that is something the Business Tax Working Group acknowledges, but that is a side effect they are willing to live with.

“I don’t believe this will cause a problem because, at the end of the day, this is designed to give business in that loss position some relief and eventually carry it back up to two years. The benefit of doing that I think far outweighs the limitation that this franking account balance account rule has.

“This is not going to be a make or break issue for this policy; it is still a positive policy announcement and something that will benefit business that meets those requirements.”

From: SMART COMPANY 14 May


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MYOB – Bank reconciliation help! – out of balance

MYOB Quickbooks Bookkeeping - MYOB – Bank reconciliation help – out of balance

MYOB Bank Reconciliation

Client emailed SOS!

I have hit a speed bump I think…trying to do the MYOB bank reconciliation but it says Out of Balance, and have checked off all transactions that I have in my system and matched to the bank statement, only have one fuel that hadn’t showed up yet but they can take a few days. I have checked my MYOB book and have come up blank..

Should my New Statement Balance (closing balance on the bank stmt) and my calculated statement balance match???? It is telling me that I am out of balance???? The more I am thinking about it the more I am confusing myself!!!!! ThanksJ

Solution – yes the New Statement Balance (closing balance on the bank stmt) and my calculated statement balance must match, and then the Out of Balance will give 0.00 – meaning they are NOT out of balance! You type in the New Statement Balance as the amount from the end of the bank statement (closing balance).

When it is still out of balance, check

  1. Haven’t ticked off a transaction by mistake
  2. Haven’t missed a transaction – eg see if you can find a transaction for the same amount as the out of balance