QuickBooks Data File Analysis

Article Tools

• April-May 2007 Issue
• Post a Comment
• Print This Article
• Email This Article to a Friend
• Save This Article
• Order a Reprint

I recently attended what I’ll call the “geeks meet-and-greet dinner” with the editorial staff of this magazine, and boy was it a blast! Just imagine all those experts sitting around the table, expounding on the state of the art in technology. The funny part was that we all had such different ideas about the best way to solve nearly every topic of the evening. Of course, we discussed all that geeky stuff like security, wireless devices, file synchronization, and what most other people would call boring topics, but I was in heaven. I am extremely thankful to those responsible for this fine event, which allowed us writers to dine in style while pumping our intellectual iron together.

Now, back to my podium.

I wrote about the idea of providing data file analysis services a couple years ago, but it continues to be a topic of discussion among professional consultants, so I thought I would give the topic another spin here and repeat my recommendation that EVERY consultant provide data file analysis services for their QuickBooks clients.

Why You Should Provide Data File Analysis Services

Before you prepare the client’s tax return or provide any type of assurances about the accuracy of the QuickBooks data, you must have confidence in the “health” of the QuickBooks data file. We use the word health to mean more than just the accuracy of the accounting data. In addition to accurate accounting entries, a healthy data file is free from data corruption and conforms to best practices in several areas of setup and usage of the software.

At first glance, the data file analysis engagement may appear to be quite lengthy and time consuming. Many consultants are accustomed to immediately diving right into the client’s books and fixing the problems. And, of course, this is typically the only thing clients want to pay for. However, the successful consultant will approach client engagements on a much broader and more professional manner. When you make data file analysis engagements a standard service for your clients, you provide a much higher level of service and you streamline your consulting practice to provide consistently high-quality service as you grow your client base.

The main goals of performing data file analysis services are to ensure early identification of critical data errors; to add value to the client’s business (beyond fixing data entry errors) and improve the overall confidence in the business information; and to give the consultant a consistent methodology in which to approach every client file so as to provide consistency and reliability across your consulting practice.

Selling Data File Analysis Services

So if you like the idea but you’re having trouble with how to sell this engagement to your clients, here are a few thoughts:

Regular, periodic data file analysis is best. I suggest monthly or quarterly analysis of every data file. If you regularly analyze the file, you can locate data-entry or setup problems while they are still relatively easy (and less expensive for the client) to troubleshoot and repair. Also, analyzing and troubleshooting the data file allows your clients to have confidence in their financial reporting throughout the year as opposed to just at the end of the year.

Ideally, you want your client to understand and appreciate the importance of this service, but quite often, he or she must be convinced that it is worth it, and not just something that unnecessarily increases their costs. This is a real issue because in order for the client to understand the value, they must understand the technical underpinnings of their system and how it all fits together. It is a lot to understand, and usually they don’t really want the details. Issues such as file setup, list maintenance, proper coding of entries, proper backup procedures, and data file integrity are all critical to the overall health of the data. And for you to provide any assurances to the client about the accuracy of reports, you must verify that the data file is healthy.