You are the owner of your very own accounting practice you

Question

You are the owner of your very own accounting practice. You are employed to assist Dominic Leonardo (owner of Dominic Consulting) in setting up QuickBooks for his company and his free Intuit Accountant File Transfer account. At month end, you received a .QBX file from Dominic Consulting containing all of the organizations accounting work for the month of January. Dominic is not clear on the purpose and security of the Accountant File Transfer account and needs your assistance.

Your service is to review the books of Dominic Consulting and advise Dominic of any corrections needed. Using your accounting knowledge you will describe an important outcome of the company's performance shown in three statements: the Profit & Loss Statement, the Balance Sheet, and the Statement of Cash Flows.

Dominic Consulting is using the Ask My Accountant feature of QuickBooks which has led to a specific question. Dominic is unsure of how to record a retainer fee of $2,400 from a new customer, TakoSami. As it stands, Dominic Consulting plans to provide consulting services over the next three months. He has not performed any work for TakoSami and expects the work to be done evenly over the three months.

Dominic Consulting wants to know if the following entry is correct:

Cash		2400
	Sales		2400

Write a letter to Dominic Consulting in which you:

1. Explain the interface provided by the Accountant Copy File Transfer, including the integration of your work into DCs accounting files.
2. Explain the proper accounting for the TakoSami transaction and the effects / consequences of improperly recording this transaction.
3. Explain the key highlights you identified in the three statements, using your accounting knowledge.
4. Identify the errors that you found in your review and suggest a resolution.
5. Format your assignment according to the following formatting requirements:

The specific course learning outcomes associated with this assignment are:

• Generate financial reports for most small- to medium-sized businesses with QuickBooks.
• Use technology and information resources to research issues in microcomputer applications for accountants.
• Write clearly and concisely about microcomputer applications for accountants using proper writing mechanics.