Here learn how to create the QuickBooks period copy for the CRA Audit. For the creation of the QuickBooks period copy for the CRA (Canada revenue agency) audit follow the mentioned steps.
At the time of the CRA (Canada revenue agency) audit, your auditor will ask you to provide the QuickBooks period copy for audit purposes. The QuickBooks period copy is nothing but the condensed version of your company file for a specific duration, mostly a tax year. The auditors generally need the QuickBooks period copy for the tax year for which they are performing the audit. For the creation of the QuickBooks period copy for the CRA (Canada revenue agency) audit, you need to follow the below steps.
How to Create the QuickBooks Period Copy for the CRA audit?
As we have mentioned above as well, the QuickBooks period copy is your company files in the condensed form and nothing else. For creating the period copy and for sending it to the auditor for CRA audit purposes, you can follow the below steps:
Step 1. As the QuickBooks period copy is part of the condensed data feature in the QuickBooks so at first, you will have to select File> utilities> condense data. And then you should select the transactions to and from the date (typically for the tax year) in the condensed data window.
Step 2. Now you will have to select certain settings for the QuickBooks period copy which includes the following:
- You can select a single summarised journal entry or monthly entries option.
- You can skip the option of the creation of summarised journal entries altogether. But the option would lead to a lot of inaccuracies and you will have to enter the journal entry for opening balances manually which will need a lot of effort. So, it is better to not choose the skipping option.
- You can also select the option of summarized inventory transactions, remove other unused transactions.
Step 3. After you are done with choosing and selecting the options for the settings of period copy, you should click on “Begin to condense” to create the new period copy file for CRA audit purposes.
The process will take some time but it would not affect the original company file in the QuickBooks, you can use and access the original company file at any time. The period file will open on your system once the condensed data utility procedure is completed.
Now, you can use your newly created QuickBooks period file for Canada revenue agency (CRA) audit purposes, or other legal disputes situations. The process also removes the audit trail of the transaction entry; therefore, the reviewer or auditor will not be able to see the original transaction entry and modification dates.
If you do not want to go into the process of doing it yourself, you can also reach out to various online period copy creation service providers. They will create the QuickBooks period copy on your behalf and you just need to provide some instructions and fill in a form on their website.
In case you need further information or have some queries in your mind, you can dial a toll-free number and the QB technical helpdesk will help you.