What Dominic Leonardo needs to know is that an accountant’s copy refers to a version of the company’s accounting file that is normally used by the accountant to make certain changes. During the period which the accountant makes those changes on the accountants copy, the firms’ owner gets the opportunity to work on the original firms’ accountant books. Therefore, the interface helps in making changes simultaneously to the work in progress. Moreover, it creates an opportunity for two people to work on the same account books simultaneously, though using different dates. Once the accountant is done with his copy, he resends it back to the firm own so that an import can be made into the original file of the company (QuickBooks). When Dominic will be creating an accountant’s copy, it will be of importance that he decides on a dividing date. That date is normally used to determine the fiscal date that the accountant will use for the transactions purposes. In most cases, the accountant works on the transactions that were dated before the dividing date while the firm owner works on those dated after the dividing date.
A dividing date is of importance because it determines the transactions which the accountant will handle while at the same time determine the transactions handled by the owner of the company. A good diving date is one that gives an ample period of up to two weeks after the last date that the fiscal period ended. Such a time allowance is normally aimed at giving the accountant an ample time in transferring transactions between two consecutive periods. Therefore that is the same case that will happen with the Dominic’s files. Leonardo will have to send the accountants copy to me through email, so that I can work on the accountants copy. He must also remember to create a dividing date so that I know the transactions to handle and which not to handle. Leonardo will have the opportunity to handle the transactions posted after the dividing date while I handle those transacted on or before the dividing date.
In order for Leonardo to create an accountants file, he will follow the following procedure:
He will go to the main menu, choose file, then accountants copy and finally save the file.
The second step will be to confirm that he wants to create an accountants copy after which he will be prompted to click next.
The third step will be for him to choose a dividing date, and then click next.
The fourth step is optional where Leonardo can choose to change the location of the file as per the suggestions of the QuickBooks. He must however make sure that the file has a .qbx extension. Once that is done, he will then need to save the file and then send it to me as he continues to work on the original version. There is a possibility that Leonardo can create some changes on the transactions that were conducted either on or before the dividing date. If that happens then such changes will be undone the moment he imports the changes that he will receive from the accountants’ version.
There are a number of advantages that are associated with the use of an accountant copy and they include:
The firm owner, Leonardo in this case can email the details directly to the accountant in QuickBooks. Secondly, Leonardo will have to spend little time in making changes and adjustments on the changes that already made on the accountants version. Moreover, Leonardo will be highly assured that the changes that are made in the QuickBooks are absolutely correct (Intuit). The only negative aspect about this type of file is that Leonardo will have very limited options of making changes to the accountants’ version. Moreover, if he had already done some changes on the dates before the diving date, such changes will all be undone when he imports the accountant’s version. Finally, the accountant may delay in giving back the accountants copy, and that may derail the progress of the business to some extent.
For the TakoSami transaction, the books entry that was made by Dominic consultants were absolutely correct. The cash was recorded as a debit for the recognition of the receipt of the cash from the TakoSami. Sales were recorded as a credit to show that it a liability that the company has to fulfill in the future. Therefore, Leonardo does not need to worry about the transaction recordings that were entered in his books. On the contrary, if the transactions were not entered correctly, then it would most likely result in a financial loss. For instance, if the cash received was recorded as a credit then it would mean that the cash is a liability that Leonardo’s consulting is supposed to pay. The transaction would therefore result in a financial loss worth $ 2400. It is therefore important for the accountants to always make sure that they use proper recordings when preparing their financial statements. One wrong entry could result in a massive loss on the part of the company just like it has been explained in the case of the Leonardo’s consulting.