Quickbooks Period Copy for CRA/IRS Audit

QuickBooks Period Copy for CRA/IRS Audit

A period copy is a Condensed version of your company file that only contains data for a specific period. 

For example, if the IRS is requesting an audit of your books for a particular tax year. Most users would simply create a backup of the entire QuickBooks file and send it to the auditor. That file would, of course, include financial information for all years — years not even pertaining to the audit. The Period Copy feature is designed to allow users to make a copy of their QuickBooks file that includes ONLY the data they wish to share.

The Period Copy is part of the Condense Data Feature, which is accessed from the File Menu under Utilities. As with any Condense Data activity, budget information may be removed during this process. For the purposes of the Period Copy this is not typically a concern. To create the Period Copy, select the transaction dates for the period you want to keep in the Condense Data window.

A single summary journal entry is recommended but monthly entries can also be created. There is also an option to bypass the creation of summary journal entries altogether. This option will result in inaccuracies in the company’s financial results and would require manual entry of beginning balances. You can also elect to summarize inventory transaction information and remove various types of other transactions and unused list entries.

Once you’ve indicated the settings of the Period Copy, click “Begin Condense” to create the new file.

The original working file is not affected. It can take time to create the file. Once the process is complete, the new Period Copy file will be opened. You can access and use the original complete company file at any time.

If the CRA requests a copy of your QuickBooks data file for an Audit, if you need a period copy of your data file for a legal or other requirement or if you are selling a business and only need to provide a data file with a specific date range, E-Tech offers a service to create a period copy of your data file with that specific date range. 

This can be used for any of the above reasons, including divorce situations, legal disputes, etc. Only transactions in the date range requested will be in the period copy; all other transactions will be removed. The Audit Trail will also be removed and as a result, the reviewer of the QuickBooks Period copy of the data file will not be able to see transaction entry or modification dates.

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