When working with QuickBooks, it’s important to understand the different types of data files that allow you to enter data and transactions. The two primary file types in QuickBooks are the Company File and the Accountant’s Copy File.
Company File
The Company File is the main type of file used in QuickBooks to store your business’s financial data. It allows you to enter and track all of your transactions, including sales, expenses, payroll, and more.
When you create a new company file in QuickBooks, you’ll be prompted to enter basic information about your business, such as your company name, address, and industry type. Once the company file is created, you can start adding your financial data.
Entering Data in a Company File
To enter data in a QuickBooks company file, follow these steps:
- Step 1: Open the company file in QuickBooks.
- Step 2: Navigate to the appropriate section or form where you want to enter the data (e.g., Sales Receipts, Invoices).
- Step 3: Fill out all required fields with the necessary information (e., customer name, item details).
- Step 4: Save the transaction once all relevant information has been entered.
Note: Depending on the specific transaction type and version of QuickBooks you are using, there may be additional fields or steps involved in entering data. Refer to the official QuickBooks documentation for detailed instructions.
Accountant’s Copy File
In addition to the Company File, QuickBooks also offers an Accountant’s Copy File. This file type allows you to share your financial data with an accountant or bookkeeper without giving them full access to your entire company file.
When you create an Accountant’s Copy File, QuickBooks creates a separate file that contains only the transactions and changes made after a specific dividing date. This dividing date is set by you and serves as a cutoff point for the accountant’s changes.
Entering Data in an Accountant’s Copy File
While you can enter data in a Company File, you cannot directly enter data in an Accountant’s Copy File. Instead, you can make changes to the transaction data up until the dividing date. Any changes made after the dividing date will be restricted and must be made by the accountant or bookkeeper who has the Accountant’s Copy of your file.
The Accountant’s Copy File is typically used when you need to collaborate with your accountant or bookkeeper during tax season or for periodic financial reviews.
By understanding the different types of QuickBooks data files, including how to enter data in a Company File and collaborate using an Accountant’s Copy File, you’ll have the knowledge to efficiently manage your business’s financial transactions.