From 10/19/06:

I reviewed and manipulated this in the same way as I do for actual client files I work on while preparing tax returns.

I removed the password, which I always do.

I'm sending you back a copy of the full QBA file I worked with so you can see the other changes I made that can't be sent back via the AIF file.  You should restore this file with a different name than the file you already have so that you can do side by side comparisons.

Many of these changes are obviously personal preferences; but are the way I like our clients files to be for easier work on their tax returns.
 
Such As:

Set up tax form in the Company Info screen.

Preferences - Set up for Classes if appropriate.  It looks like you may want to set up a Class for the Feed Mill rather than use sub-accounts.

Account Numbers - Personal preference.  I don't use them because I prefer account names sorted alphabetically for easier matching with our tax prep program.

Report Preferences - Make sure the Accrual or Cash selection matches what the client is actually using.  QB comes with default as Accrual and most people forget to change it to Cash if appropriate.  Most of our clients are Cash basis.

Report Preferences - Formatting.  I set it the way I usually use.

I like the QB financial statements (P&L, Bal Sht) to synch up exactly with the related tax returns (1120 here); so the Chart of Accounts needs to be so organized.  Specifically, Interest Income needs to be changed to be a regular Income account instead of Other Income so that it will show up in the same area as on the 1120.  I couldn't make that change in the QBA file.

Employee benefits, such as Health Insurance, need to be reported separately from other normal business insurance accounts.

See how I set up the main reports I use for the tax prep on the Icon Bar for easy one click access.

I don't like how QB comes with all payroll wages and taxes going into one big "Payroll Expenses" account.  The items need to be edited to give better reports, with gross pay separate from taxes.  I can't do this in the QBA file.

Officer Salaries need to be in a separate account from other employees' wages so as to tie into the 1120 schedule.

I hate the use of generic non-descriptive account names such as Miscellaneous and Other.  These are invitations for scrutiny by suspicious IRS auditors.  Set up new accounts if appropriate pre-existing ones don't already exist.  The four expense accounts at the bottom of the 6/30/06 P&L have that non-descriptive feeling to me. 

Balance Sheet:

Long term notes should have their account types changed to be Long Term Liability instead of Current Liabilities.

The Opening Balance Equity account really only should be used at the very beginning of a company's set-up and only as a Suspense type of account after that.  I'm not clear whether this is a brand new corp or one that's been around for a number of years (most likely).   If an 1120 has already been filed for the FYE 6/30/05, all of the OBE entries for the 6/30/06 year need to be cleaned up.

What's the story with the huge negative bank balance?