QuickBooks File Services

Do you need a QuickBooks file with just a certain year of data?  Did the IRS request your QuickBooks file for an audit? Do you need a specific period copy of the QuickBooks file for legal or other purposes? Is the file too large or approaching list limits in QuickBooks Pro or Premier?

We can create a new file for the following situations:

  • IRS or other audit
  • Large file size
  • Issues with the list limits of QuickBooks Pro or Premier
  • Selling a business
  • Creating a new business entity
  • Divorce situations
  • Other legal disputes

The new file will contain transactions just for the time frame specified.  Older period transactions will be condensed and deleted from the file and the audit trail.  The audit trail for the remaining transactions will remain intact.  The lists can be cleaned up during the process as well.

Need a New, Smaller QuickBooks file?

If you are interested in us creating a new Period Copy file for you, contact us.  Usually there is a quick (24-48 hour turn around).

NOTE:  The new file will require QuickBooks 2012 to open it.  There will be an archive copy of the old file which can be opened for reference purposes if needed.  The name and desktop color of the old file will be changed to help clearly identify it.

This client had been using QuickBooks for over 15 years.  Here’s what they had to say about their new, smaller file (97% smaller):

We had a very large and slow file with a glitch in it for the past 10 years.  We could not clean the file, condense it, or do anything to make the problem better.  We even upgrade our QuickBooks three times hoping the next version would fix the problem and it did not.

Now we have a smaller faster and more manageable file and our entire company accounting history is not longer at risk.  We long for success and we could not have achieved it without your help.

Thanks Michelle!!!

KC Adrieyel, Pro Balance

IRS Position for QuickBooks Files

The QuickBooks Period Copy appears to meet the requirements of the IRS requests for the QuickBooks data file during an audit.  The Internal Revenue Service (IRS) recently updated (9/8/2011) the Use of Electronic Accounting Software Records; Frequently Asked Questions & Answers.  Question #13 indicates that a company file may have prior year data condensed.  This is from the IRS:

Q13. Can a taxpayer or representative condense or “clean up” the electronic accounting software data file before submission?

A: Many accounting software programs will condense old, closed transactions occurring prior to a manually selected date. For example, the closing of a prior year. Often this is done to reduce the size of the company data file. The process essentially removes the details of those transactions from the data file and replaces them with summary journal entries, allowing monthly financial statements to be created for old years if needed.

The ongoing data file (working file) will no longer have the details of old, closed transactions which occurred prior to the manually selected date. However, during the condensing process, the software creates a backup or archive copy of the company data file and this archive copy provides the original detailed records of each old transaction. If you do not have a complete understanding of your software’s condensing feature, please contact your software provider for additional guidance before using it.

Condensed data is not acceptable for the tax year(s) under audit. However, if you choose, the company data file can be condensed (through the clean up or purge feature) for dates prior to the year(s) under audit, as long as they do not include transactions created or changed for time periods under audit, or for transactions from prior years that have an effect on the years under audit.

If the scope of an audit is expanded, the IRS may request another backup file that was created prior to the date the company file was condensed or request a copy of the archive file created during the condensing process.

DISCLAIMER:  This is a new, changing and evolving requirement from the IRS.  Thus, I cannot say for sure what the IRS position will be regarding a file created using the new Period Copy feature.  There is no guarantee that the IRS will accept this file in your situation.

If you are interested in us creating a new Period Copy file for you, contact us.  Usually there is a quick (24-48 hour turn around).

5 thoughts on “QuickBooks File Services

  1. Pingback: QuickBooks Tip: Using Color to Help Identify Accounts or Files - Long for Success, LLC

  2. Constance McShane

    Hi Michelle, We get several data files from our clients and are not sure what year of QB they are using. How can we tell? Before I cold go to properties to see it but I don’t see it now.
    Thanks for your help

  3. Stephen

    I am unable to register for your blog for some reason that does not seem to be n my end. Do you think you may be able to somehow add my email address to it?

  4. Akash Dhanania

    We have a common problem in quickbooks. We are an accountant of many large and small business. We are getting problem in realtion to payroll. Actually, our clients are using various other services for payroll maintenance like Anchor, Paychex, Paycom, ADP, etc. We want to directly export and import the payroll details in quickbooks. Can it be sought out with any such details. We are getting wastage of time and resources in making manual entry of payroll in quickbooks.

    Please help me sought out these problem.

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