As of May 31, 2018, QuickBooks Desktop (QBDT) 2015 will no longer be able to work with add-on services. Such services include:
If you would like to upgrade your 2015 QBDT product or would like to discuss other options to provide the functionality you need, please give us a call or use our Contact Us page for assistance. We'd be happy to help!
If you perform a service or ship a product before you get paid, then you likely have a balance in your Accounts Receivable account. If customers pay when their invoice is due, all is right with the world. If they don’t, then your cash flow slows down and your bank balance is not as high as it should be. Here are some tips, preventive and supportive, to help you keep your accounts receivable current.
Granting Credit When you deliver your service or product before your client pays you, you are in effect their “bank,” granting them credit. Not everyone deserves to be granted credit. Consider running credit checks, especially if you are billing large amounts of money for your sized business. You may also want to ask for a retainer or deposit prior to starting work or shipping your products. This will smooth your cash flow and reduce your credit risk. Offer Multiple Payment Options When a customer is ready to pay their bill, make it easy on them by offering multiple payment options. Perhaps they will pay faster if you take payment by credit cards. Many people have extra money sitting in their PayPal accounts, so that is another payment option. Apple Pay and Android Pay are relatively recent options to consider adding. You may also want to revisit the credit cards you offer: MasterCard, Visa, and American Express are universal, but many places also take Discover and Diners Club. If you are doing international business, consider JCB (Japan), China UnionPay, and RuPay (India). Collection Process Once an unpaid invoice has reached its 90-day mark, the chances of collecting it are about 50 percent. This means that you will need to put some aggressive collection processes in place prior to the 90-day mark. If the invoice is due in 30 days, start at the 35- to 40-day mark with a friendly reminder. At 60 days, your customer needs a strong reminder and perhaps a phone call. At 75 days, they need to know what consequences there will be for not paying. Will you report the customer debt to credit agencies? Will you turn the account over to a collection agency? At 90 days, it’s probably a good idea to make one final collection effort and then turn it over to a collection agency. It might sound too soon, but the odds of collecting something much older go down significantly as time passes. At any rate, create your own process, and automate it as much as possible. The main thing is to stay on top of it. Past Due Accounts From how you first engage with your clients to the last steps in the collection process, there are many cost-effective techniques to avoid past due accounts and the unpleasantness that goes with them for both parties. If this is an issue in your business, try these ideas above and reach out if you’d like our help.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
User Permissions
Some companies have a need to limit certain functions to certain users. Most systems come with basic functional limitations, such as restricting Accounts Payable and Accounts Receivable functions. But what if you need more granular user permissions such as access to only purchase orders or a certain bank account? Mid-market systems like QuickBooks Enterprise provide those features. Multiple Companies and Consolidated Financial Statements Do you have multiple companies that are the “children” of a parent company? You might need consolidated financial statements and the ability to open multiple companies at the same time. Number of Customers and Vendors If your business is growing and the number of customers and vendors you do business with is regularly increasing, you may be in danger of reaching a list limit in QuickBooks Premier. Each system has their own list limits, and these limits can get complex quickly, so check with us if you have questions or concerns. File Size and Performance There may also be file size limits that you need to watch, especially if you have a high volume of transactions or multiple years of history in one file. You could also have performance issues. If you have a new PC and your accounting system is still running slowly, we can offer suggestions on how to improve your performance. Inventory Features If you need advanced inventory features, such as tracking inventory in multiple locations, using the FIFO method, and managing lots or serial numbers, you have options either to stay on a desktop-style system or move to the cloud. We can help you identify the best option for your situation – talk to us! Enhanced Customization Most mid-market accounting systems provide better customization such as additional custom fields, better reporting, and improved form design. Number of Simultaneous Users The final reason to switch to a larger accounting system is if you need more simultaneous users. QuickBooks Pro allows for up to three simultaneous users, QuickBooks Premier handles up to five, and QuickBooks Enterprise makes room for up to 30 simultaneous users. QuickBooks Online allows up to 25 simultaneous users. Check with us if you are curious about your system’s license limits. Outdated Versions At times, accounting system support is only offered for a limited time period. To ensure the security and safety of your data, make sure your current system is properly and effectively supported. Did any of these reasons resonate with you? If so, let us know so we can discuss your needs. It’s the time of year to update mileage rates for business, medical and charitable purposes. The new rates for 2018 are highlighted below.
For additional details related to the mileage rate and automobile expenses, please read the official IRS notice (2018-3): https://www.irs.gov/pub/irs-drop/n-18-03.pdf.
Year-end is just around the corner, and that means a couple of administrative tasks are necessary to take care of bookkeeping and tax chores. Here are a couple of tips to make year-end go smoother.
Cleaning Up Things will go a lot smoother if you reach out to your vendors and employees and get their help to update your records.
It’s also time to clean up any account balances that need to be reclassified or corrected.
Maximizing Deductions Here are a just a few ways to maximize deductions:
Getting Organized Create a dedicated and secure place to store tax-related documents, such as W-2s, brokerage statements, and tax returns. Convert them to PDF format if they are not already, and upload them to your accountant’s secure client portal as you get them. With all this great preparation, you’ll find tax season easier than ever and a chore that you can mark off your to-do list early.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
Year-end is just around the corner, and that means a couple of administrative tasks are necessary to take care of bookkeeping and tax chores. Here are a couple of tips to make year-end go smoother. Cleaning up Things will go a lot smoother if you reach out to your vendors and employees and get their help to update your records.
It is also time to clean up any account balances that need to be reclassified or corrected.
Maximizing deductions Here are a just a few ways to maximize deductions:
Getting organized Create a place in your home or office or a special file on your computer to store tax-related documents, such as W-2s, brokerage statements, and tax returns. Convert them to PDF format if they are not already, and upload them to your accountant’s secure client portal as you get them. With all this great preparation, you’ll find tax season easier than ever and a chore that you can mark off your to-do list early. If you need assistance with any of these tasks, please reach out to us. We are happy to help in any way we can! This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
Two Types of Accounts There are two major types of accounts:
Three Purposes A chart of accounts should meet three needs:
Taxes Your accounts could be the same as (or be able to be grouped into) the lines on your tax return. You can find a copy of the tax form you fill out. For example, a sole proprietor will use a Schedule C of the 1040, and a corporation will complete an 1120. There are a few special needs, such as meals and entertainment which are only partially deductible, to which you need to pay special attention. We can help you with that. You can also see this article.) Aha As small business owners, we work with a gut feel, but when you see what you have made or spent in black and white, it takes on a whole new level of meaning. Your income statement and other reports should do that for you. If they don’t, you may not have your accounts set up right. Revenue Think about how you want to see your revenue:
We can help you brainstorm based on your industry and type of business. Please contact us to schedule a review of your current Chart of Accounts and needs. Actionable Intelligence If you have been putting all your revenue into one revenue account, it will be exciting the first time you see your new Profit and Loss statement. If you have been breaking out your revenue but it has not led to any actionable change in your business, then there may be a better way to break it out. If you are happy with the way your revenue is broken out, then think about how you can take it to the next level. Once you see your new chart of accounts, you will likely have even more questions. The chart of accounts can be an evolving entity, designed to serve your business needs. This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
Complicated bartering may now take place through bartering clubs that give members credits for items or services they contribute. Members can then use the credits to pay for goods or services offered by other club members. This service offers a convenience to businesses, as it can be difficult to find the businesses that offer what you are looking for when searching on your own. It’s important to note that there are income tax consequences to bartering. To be safe, view your trades as if cash changed hands, since the goods and services are valued for tax purposes at their fair market values and taxed accordingly. Also, a bartering arrangement does not always result in a deduction immediately equal to the income you recognized. You might provide a service and recognize income immediately in exchange for some equipment you will end up depreciating over several years. Please call us if you need more information about tracking bartering transactions in your business. This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
As a small business owner, saving money by preparing your own taxes may seem like a good idea. Take a few minutes to consider the pros and cons of using software instead of a CPA.
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