Don't be late filing or making your Federal Payments. Here are the most common filing and payment due dates for February 2010
Year End Tasks
©D. L. MacMillan, QuickBooks Training. Web Learning
The holidays are over and we have had a few days to ease back into our regular business schedules. But with the new year comes a long list of tasks that need to be attended to in order that your filing requirements are met and your books are ready for your tax preparer.
The first tasks are definitely tied into a deadline and they are preparing your W2’s and 1099’s. The copies sent out to employees and subcontractors need to post marked no later than January 31st. You have a small reprieve this year however as the 31st lands on a Sunday moving the deadline to February 1st. The filing deadline of these forms to the various government agencies (federal, state, local, etc) is March1st, 2010 (usually February 28th however again this day falls on a Sunday this year).
Before distributing either of these forms be sure to make sure the names and addresses are correct. And the employee’s Social Security number or the subcontractor’s FID number matches the name on the form. This is more likely to become an issue with subcontractors, as they may have filled out their W-9 with a dba name (doing business as) but using their Social Security number as their identifying number. A Social Security number should be matched to the individual’s personal name and only FID’s used for a company name.
Verify that the information shown on the forms is correct. Do the wages reported and the taxes withheld agree with your payroll records? Have you included any taxable benefits are listed in the correct boxes? If you have any questions regarding these amounts please consult either your payroll provider or your accountant.
Now that these forms are done and mailed, lets discuss what should be done about making sure your books are ready for tax preparation.
There are certain key accounts that should be reconciled and analyzed. These include all bank, credit card, inventory and payroll accounts.
Reconcile your bank and credit card accounts to the year end statements.
If you are tracking inventory take a physical inventory count as close to the 1st of the year as possible. And compare this to your booked inventory. If there are discrepancies either in count or value than make sure your count is correct and if you find it is adjust your booked inventory as necessary.
Verify that your payroll liability accounts are in sync with what your payroll records are
reporting.
Review your accounts receivable and accounts payable agings. Are there invoices that should be written off?
Review your Balance Sheet and Income Statement looking for any numbers that may not look right. Perhaps you have an unusual high amount posted to office supplies for example (or any other account). Was the cost of a computer purchase incorrectly posted to this account instead of a fixed asset account? Verify that the entries posted in these accounts are correct. The goal is to take a “does this make sense” review of these statements.
Wait until your January bank and credit card statement have been received and any transactions dated in the previous year are posted before you present your records to your tax preparer.
By taking these steps you will save time and money in the preparation of your taxes.
January 2010 Tax Calendar
Don't be late filing or making your Federal Payments. Here are the most common filing and payment due dates for January 2010
Using Classes In QuickBooks
Would you like to know how much profit is made by a particular department or location within your company? The use of classes will allow you to do just that providing you with reports showing the income earned and the expenses incurred for each segment of your business you wish to break out. For example, if your company is a retail store with more than one store it would be helpful to know just how profitable each store is. Or perhaps you are an electrician and would like to know whether you make more of a profit on commercial jobs versus residential work.
Setting up classes is very easy. First under the Edit pull down menu, choose Preferences. In the new window in the left hand column click on Accounting and then the Company Preferences tab. Check the box titled Use Class Tracking and the Prompt to assign classes box. To set up your classes, access the List Menu and choose the Class List option. On the bottom of the window that opens up click on the Class pull down menu and choose New. Name your class and click okay.
You will see a class field on all forms and should you save an entry without filling in the class you will be prompted to add a class. However, you will have the choice to either use a class designation or not to use one.
You may run a Profit and Loss Report by class by clicking on the Report menu, choosing the Company & Financial section and selecting Profit and Loss By Class. Other reports may be modified to show data by class should you wish. For example if you would like to see all open customer invoices by class, then bring up the Customer Open Invoice Report and click on the Modify Report button at the top of the window. In the Filter tab you may choose to filter by class and then you can either choose to filter by all classes or choose to filter on multiple classes. If you choose to filter on multiple classes an additional window will open and let you choose the classes you wish to see in your report.
As always QuickBooks gives business owners many ways to see and analyze their financial information in order that they might use this information in their quests for profits and success.
Copyright ©D. L. MacMillan All Rights Reserved
QuickBooks 2010 Is Here!
©D. L. MacMillan, QuickBooks Training . Web Learning
You can now customize your company snapshot. And for those who did not upgrade to 2009 yet the Company Snapshot Page is a great way to keep daily tabs on all of your business activity. Graphically displayed reports at your fingertips, updated in real time allowing you to view all the important key data you need to keep on top of your business.
Document Management saves you time, money and file space. Attach and store documents to your QuickBooks database. A scanned or electronic document can be attached to any vendor, customer, employee, account or transaction allowing you to refer back to the document easily without digging through piles of paperwork or file folders. And no more lugging all that paperwork off to your tax preparer because it’s all there in QuickBooks! Easily shared with even those who do not have QuickBooks because they are all safely online. Don’t worry about lost or damaged documents again.
A new re-designed report center allowing you to preview reports to add in your search and you can even tag your favorite reports for future quick access.
Tired of plain old invoices? QuickBooks 2010 gives you an easy way to distinguish your company from the crowd. Free professional designs are included that are available for all invoices, statements and other forms.
This is a real time saver. Whenever you need to enter multiple customers, vendors, or items you have the option to use an easy to use spreadsheet form. When you are finished all the individual records are filled in and ready to use.
New way of handling customer checks! Stop running to the bank and just scan your client’s checks into QuickBooks, the funds are deposited and the accounting is done. This requires a separate subscription and a separately purchased check scanner.
Easy Installation with Improved Installation Manager. Reduces steps for upgraders by copying existing configuration.
Improved Clean up Company Data Wizard to condense older transactions into summary roll-forward numbers.
Favorites Menu create shortcuts directly to specific functions and personalize favorites for each users. Favorites menu can be accessed from any where in Quickbooks.
Improved On-line Banking – choose from either the register view or re-designed Online Banking Center.
Purchase your update today and start enjoying all these new features!
©D. L. MacMillan, QuickBooks Training . Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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Common Payroll Terms
©D. L. MacMillan, QuickBooks Training. Web Learning
Are you confused by all the acronyms used for payroll? Here a few of the most common and what they stand for.
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EIN- Employer Identification Number which is issued by the IRS upon request. This should be issued for every company, but is mandatory for any company with employees.
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SSN- Employee’s Social Security Number which is issued to any employee who is legally eligible to work in the United States.
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W4- The form filled out by a new employee showing the employee’s name, address, social security number and the marital status of the employee as well as the number of dependents he/she wishes to have their FIT based on. This form is kept on file by the company.
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W2- The form an employer issues to every employee at the end of each calendar year or if the employee leaves during the current year at the end of their employment. This form shows the company’s name, address and EIN number as well as the employee’s name, address and SSN. It also lists the wages earned that are subject to FIT, FICA and state withholding and the amounts withheld. This form may also include such items as deferred deductions such as employee contributions to pension or retirement plans and employee health benefits withholdings as well as other withholding or income items that affect the employee’s taxable wages. This form consists of several copies, one for the Social Security Administration, one for your state, employee copies for Federal, state and if appropriate local government filings and copies to be kept by the issuing company and the employee.
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FIT– Federal Income Tax. This refers to the Federal Income Tax withheld from an employee’s paycheck. This tax is based on rates set by the IRS and is affected by an employee’s marital status and number of dependents.
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FICA– Federal Insurance Contributions Act which includes Social Security and Medicare tax withholdings from an employee’s paycheck. The Social Security portion is applied to 100% of an employee’s wages, however the Medicare portion is applied only to the amount of wages set and changed yearly by the IRS. The employer is required to match the total amount of FICA taxes withheld from each employee.
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SIT– State Income Tax which refers to your state income tax withholding from an employee’s paycheck. These withholdings are based on rates set by each individual state. Some states do not have income taxes for individuals.
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SUTA- State Unemployment Tax Act. This is a tax that the employer pays and is based on your state’s rate per a stated amount of wages per employee.
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FUTA- Federal Unemployment Tax Act. This is an employer paid tax that is based on a stated wage per employee and the rate may be adjusted based on the amount contributed to your state fund.
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941- A Federal form filed quarterly to report wages paid, FIT and FICA wages withheld as well as the employer’s contributions to FICA, and the dollar amount of deposits made and the dates these deposits were made.
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940- A Federal form filed yearly to report wages paid, amount and date of state SUTA contributions made and any FUTA deposits made during the calendar year.
Please refer to the IRS and your state’s web sites or publications for Federal, state and local rules and regulations to determine the current rates in effect, when and how to make your deposits and what reports are required and their due dates.
©D. L. MacMillan, QuickBooks Training. Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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Going Into The Fourth Quarter
©D. L. MacMillan, QuickBooks Training . Web Learning
The fourth quarter for most businesses starts on October 1st. If you have not started to get ready for the year end, now is the time to start.
If you have been struggling to keep a manual set of books and your plan is to bring your tax payer a cardboard box or multiple plastic bags of receipts in January, there is a better plan and now is the time to put it into action.
Intuit offers several bookkeeping system options that range from the very simple to those that meet the needs of mid-market companies with sophisticated recording and reporting needs. And the cost of these programs start at FREE! Yes I did say free.
If you are a small company without inventory tracking needs and have limited customers and vendors than you can most likely use the free Simple Start Editions. Need more customers and vendors than Simple Start is also available in a very low cost edition.
For those of you that require inventory tracking there is the QuickBooks Pro edition.
You can start at the lowest level that works for you now and easily move up to a more robust version in the future. And without having to relearn a brand new program as each level is based on the preceding level.
With a good set of books you will have peace of mind, knowledge of your business and your tax preparer will be thrilled when you walk through the door without a pile of receipts for him/her to wade through. And who knows you might even save some money because better organized books allows your tax preparer to take more time actually advising you and finding tax savings instead of trying to organized a whole year’s worth of work at once.
See the full range of QuickBooks products at www.cfomac.com. Click on the QuickBooks & Other Links page from the top menu.
©D. L. MacMillan, QuickBooks Training . Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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Do You Have What It Takes To Be An Entrepreneur?
©D. L. MacMillan, QuickBooks Training . Web Learning
You have a great idea for a product or service that you know will make you the next multi-millionaire. Your family and friends either think you are brilliant or crazy. Perhaps you are not happy with your current employer or career and desire more control of your work and career. After all if you are like me, there is no better boss to work for than yourself. So how can you fail? Wrong question! The question you should be asking is how can I succeed?
It takes not only a great innovative idea, but a passion for success and an attitude to do whatever it takes to reach your goals. And planning, planning, planning.
You will wear many hats as the owner of your own business – innovator, inventor, marketer, sales, executive, financier, purchase agent, production manager, bookkeeper, office administrator, advertising manager, and the list goes on. Even if you are out-sourcing some of these functions you need to know if the people you hire are providing you with the information and services needed. This doesn’t mean you need to be an expert in all the areas needed for a successful business, just that you understand the basics of each. The more knowledge you accumulate, the more successful you will be. The president of a large corporation surrounds himself with a highly trusted group of advisors. But it is the president that hand picks these people based on the knowledge and experience he has accumulated within each area. You need to assume the same responsibilities for your business.
And if you think you will have more free time, well think again. There is no room for a 9-5 mentality in the start-up and growth of a new business. Long hours, working on weekends, holidays and nights are more the norm. And while you might not be servicing customers during these hours, you will certainly want to be taking care of all the non-direct tasks. And this is where the planning, planning, planning comes in. Plans to finance your business. Plans to market your business. Plans to grow your business. And following the planning are the tasks of putting the plans into action.
Almost every waking moment of your life should be filled with thoughts of how to move to the next stage of success. Conversations at breakfast or over the dinner table will center on the business. You never know when a breakthrough will arise and you need to take advantage of those thoughts when they pop up or you will forget and never get back to them. Carry a tape recorder or notebook around with you at all times. I keep one by my bedside as I sometimes wake in the middle of the night with a wonderful idea and I know from past experience if I don’t write it down then and there it won’t be around in the morning. If I am watching television a program or advertisement might inspire me to action so again a notebook is right there on my coffee table.
This all consuming attention to your new business doesn’t mean you don’t enjoy your personal life however. Do take what I call mini vacations. Times during the day to regroup, rest, spend time with your family. Take a walk, do a short stint of exercise, read a book for pleasure, play with your kids, plan a meal where no business is discussed, go for a drive, call up a friend. These activities will clear your mind and rest your body and you will return to your business tasks refreshed anew and you will be reminded that living a full life is not just about how much money you make, but also how you treat those you love and enjoy the pleasures we are meant to experience.
Starting a new business is hard and time-consuming work, but it also fun, exciting and fulfilling. If you have what it takes and are willing to put in the time and work, then welcome to the world of Entrepreneurship!
©D. L. MacMillan, QuickBooks Training . Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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Your Stimulus Plan
You have been reading about all the bail out plans being provided by the government to banks and auto manufacturers and no matter what your opinion on these programs you can’t help wonder “where is my bail-out?”
Well there is a program being offered by the SBA (Small Business Administration) that does offer businesses a hand up out of the hard times we are experiencing.
The program is called the SBA’s America’s Recovery Capital Loan Program and is available to small businesses needing immediate help with financial hardship.
So if your business has a realistic chance succeeding you may be eligible for this program.
ARC loans are interest free, and are 100% guaranteed to your lender by the SBA. They also do not require any fees to the SBA.
Funds are provided over a six month period and payment of principal is deferred for 12 months after the last pay out of the funds to your business. Once payments start up they can be extended over a five year period.
The ARC program provides up to $35,000 with an immediate infusion of cash to be used to help with payments for principal and interest on existing business debt relieving cash flow so a business can focus on covering such items as inventory purchasing, payroll and regular operating expenses.
To be eligible you must be a for profit organization residing within the United States that have qualifying small business loans and are experiencing immediate financial hardship. You also must demonstrate that your business has been profitable in one of the last three years and be able to demonstrate enough cash flow to meet current and future loan payments for the next two years following the loan approval. These loans are not designed for start-up businesses. However your lender may have additional programs available that meet your needs should you not qualify for the ARC program.
Qualifying small business loans that will be considered are credit card debt, capital leases, notes payable to vendors and suppliers as well as other types of loans.
If you are suffering financial hardship in your business because of loss of customers, increase of expenses, loss of working capital or credit availability reduction, loss of employees or loss of major suppliers this program may help you move beyond these issues.
These loans are available through September 30, 2010 or for as long as funding is available so if you think this might help your business don’t wait, apply now. To apply for this program contact your local bank and/or lender.
©D. L. MacMillan, QuickBooks Training . Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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Retiring Soon? Some Say Not For Me?
Once upon a time we all dreamed of those lazy and well earned days of retirement. We worked hard, contributed to our Social Security Funds and even managed to put aside some money into retirement funds. Our homes with their paid off mortgages would add to our financial well being. All and all we had dreams of sunny days on the golf course, traveling, having time to enjoy all those hobbies and other activities we had put off until we had enough time to devote to them.
And then the age of retirement started to creep up. Then along came the “Recession”. 401k plans and other investment vehicles we had so carefully planned to grow in order to meet our retirement financial needs plummeted. Our homes lost their values devaluing our nest eggs. And some borrowed against their 401k and re-mortgaged their homes just to survive while we waited for the promised recovery that is most likely years away. And retirement keeps getting further and further away.
So more retirement aged people are deciding to continue working to make up the shortfall. But it is not all bad news. A recent study showed that older people that continue to work are healthier on average. So look at this as an opportunity. If you have already retired but are wondering if you should get back in the work force, jump in. You might look into a career that is entirely different than the one you retired from. Or this might be just the right time to start that business you have being dreaming about. Take advantage of the education and retraining opportunities available for older folks. It is never too late to go back to school.
Help your financial status, be healthier and stimulate your mind and well-being by turning the golden years into productive years.
©D. L. MacMillan, QuickBooks Training Anywhere You Are . Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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Searching QuickBooks
©D. L. MacMillan, QuickBooks Training Anywhere You Are . Web Learning
There are two ways to search within QuickBooks, the Find feature and the Search feature.
Search uses the Google Desktop search and can be accessed by clicking on the Search button on the toolbar or by choosing Search from the Edit pull down menu. When you click on Search for the first time you will be asked if you would like to Install Google Desktop. Google Desktop can be uninstalled later should you decide you do not want to use this tool.
So what is Google Desktop all about as it pertains to QuickBooks. With this tool which you can access within QuickBooks you will be able to easily search and find QuickBooks transactions by searching for amounts, dates, names, item names and information included in a note field. You can search using multiple words, specify exclusions and search for information that may not be included within your QuickBooks database but does reside on your computer. However all this comes with a price, and that is a possible slow down of your computer’s performance.
And this is where the Find feature comes in. While only searching within your QuickBooks database, Find is a powerful search tool which can be found by choosing Find from the Edit drop down menu. In Find there are two available search choices: Simple and Advanced. And because it is not indexing your entire computer it cuts down on the resources it uses making it a faster search tool and does not affect your computer’s performance.
The Simple search allows you to choose from a list of transaction types and then you may search using a date or date range, a transaction number such as an Invoice number or a transaction amount or a combination of these fields. The search result will be displayed in a table and you can double click on the result to go to the original transaction.
And the Advanced search will give you the option to filter your selection within the QuickBooks fields which will expand your ability to dig deeper into your search request.
Happy searching!
©D. L. MacMillan, QuickBooks Training Anywhere You Are . Web Learning Dissemination of this article in its entirety is allowed under this copyright. Extractions of any content are not permitted for any purpose and the article must be disseminated in its present form without modification or change of authorship, whether in whole or in part. This dissemination allowance applies to this specific article only and does not transfer to other publications copyright protected or developed by Donna L. MacMillan, D.L. MacMillan and Associates, Bookkeeping R Us or CFOMAC.
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