Professional Bookkeeper and QuickBooks Certified Consultant

Copyright 2007 Bookkeeping R Us All Rights Reserved

At the end of an accounting period entries are often needed to reflect a more accurate picture for that month or year.  However some of these entries are made on assumptions.  These entries are often made to reflect revenue and expense matching. 

One example of this is in the construction business.  A construction company may determine that a project is completed up through a particular phase.  The foundation and rough framing is done for example.  There are costs that have been expensed on their books but maybe revenue has not been billed as of yet.  And so in order to match income with expense this company would determine what percentage of revenue should be recognized in the current period based on what expenses were incurred and how much work was actually completed.  Once this determination was made, an entry crediting the income and debiting a Work In Process asset account would be made.  However, remember this was an estimate not an actuality.  Once the job was completed the estimated income figure may be higher or lower.  And so a reversing entry would be made on the first day of the following accounting period to negate this adjusting entry. 

At the end of the second accounting period another analysis of cost vs revenue would be made and the adjusting entry to WIP would be made with the new determination and reversed in the following period.

Construction is not the only type of industry that uses WIP (Work In Process), manufacturing and any company that maintains inventory are other examples.

Whenever you have receipts or payments taking place in future accounting periods that need to be recognized in the current period you will use this technique of booking an adjusting entry in the current period and reversing that entry on the first day of the following period. 

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Copyright 2007 Bookkeeping R Us All Rights Reserved

Are you looking for a free (yes I said free) or inexpensive way to handle your company’s financial needs?  QuickBooks Simple Start 2008 comes in two editions, the free edition (free QuickBooks!) and one that costs under a hundred dollars.    This is one rare case of inexpensive being a great deal.

 Let me tell you what you can do with these two programs so you can decide for yourself whether they are the solution you have been looking for. 

First the free version – based on the same user friendly format that all QuickBooks programs have, Simple Start’s free edition is the solution for start-up or small businesses that need just the basics.  But don’t be fooled into thinking you will not get what you need to organize your business finances.  As reliable as all QuickBooks programs are, Simple Start Free Edition is just what it says – a simple start.   As you enter your everyday transactions you will be tracking your income and expenses preparing you for tax time.  No more last minute rush to organize all those receipts into some kind of sense for your tax preparer.  You will be able to see the money coming in and going out, where it comes from and who it goes to all in one easy to access place.  This is not a trial version with an expiration date but can be used for as long as you desire and easily upgradeable to another QuickBooks edition as your company grows with a seamless transfer of data.  It is very simple to get started, just answer three quick questions and you are on your way.  And QuickBooks provides you with step by step tutorials to walk you through all your tasks such as preparing invoicesand recording expenses.  And if you have the need you can export your data to an Excel (Excel 2000, 2002, 2003 or 2007) spreadsheet for more advance analysis.   Fourteen reports are available to help you understand where your business is at and how it can grow.  Reports such as Total Sales By Customer, Invoices That Haven’t Been Paid, Income Tax Summary, Profit and Loss and Balance Sheet reports and more are great tools for the business owner.   Customize estimates and invoices for a more professional look.  Have you ever sent out an invoice with a math error?  How embarrassing and expensive if you can’t go back and correct the error.  This won’t happen again if you are using QuickBooks Simple Start.   So how can you go wrong, it’s free after all.  Download for free, or have it shipped for a small shipping and handling charge. 

So what’s the difference between Simple Start (the free edition) and Simple Start Plus Pack ($99.95)?   Simple Start Plus Pack is the free edition plus it includes 250 standard or voucher checks for you to use to pay your vendors, a one-year, 1GB QuickBooks Online Backup service starting with your product activation which must be completed by January 31 2009 to receive full year of service, and A Learning Accounting Essentials training CD.  Your checks are not included in your package but must be ordered within three months following product registration. 

You should know that Simple Start is for first time QuickBooks users and will not import data from other QuickBooks editions or Quicken or Peachtree.   Inventory tracking, purchase orders and automatically downloading of credit card and bank transactions are not available features in the Simple Start programs.  And you will not be able to automatically populate and print 1099/1096 tax forms. Should you require these features consider the QuickBooks Pro or Premier Editions

Follow the QuickBooks links at the top right section of your screen to check out Simple Start for yourself and get a discount on Simple Start Plus.  Once at the QuickBooks site, click on Learn More under the QuickBooks for Windows section and you are on your way to organizing and understanding the in’s and out’s of your business.

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Copyright 2006 Bookkeeping R Us All Rights Reserved

Does anyone out there know how many items are in two dozen? This should be a question that any second grader could answer easily. The reason I am asking is that once again I have been amazed at the lack of common everyday knowledge that our young people are suffering from.

I visited a Dunkin Donut shop today and asked for two dozen Munchkins, my dog’s favorite treat. I really didn’t expect to stump the young woman behind the counter but that is exactly what happened. It seems that Dunkin Donuts sells their Munchkins in a quantity that exceeds two dozen; twenty five of these tasty treats is the standard package. So the phase “two dozen” just sent this lady into a quandary of confusion. Thankfully there was an older woman employee handy to rescue her as I when I jokingly said twenty four to her question – jokingly said as I was under the mistaken impression she was looking for price information not a definition of numbers – she repeated the question to her co-worker once again. I wonder what would have happen if I asked for three dozen. Total pandemonium for sure.

It a sad situation when our youngsters are not given the basics of math before sending them off into the world. No matter what we do in life we need math skills. I am not talking about algebra or advance calculus, but simple everyday measurements. A dozen equals twelve, so two dozen equals twenty-four, a cup is eight ounces, two cups equal a pint, two pints equal a quart and four quarts equal a gallon. Certainly every young child knows this – or maybe not as it seems not every young adult has acquired this knowledge.

This is a call to teachers and parents alike, unless you want to be spending your time and hard earned money supporting these kids you need to take their education seriously. No skills equals no job which increases the risk that these young people will fill their lives with emptiness and trouble. One cannot even prepare a meal without this knowledge - oh I forgot we are all eating at fast food restaurants so no one cooks. As our waist lines increase does our ability to learn and retain decrease? Surely not a direct correlation, but even the simple task of feeding ourselves has become something someone else does and therefore the required information is lost to the everyday person. A small amount of time invested now in a child’s education will result in a great return for the future. Get out those pots and pans and teach your kids how to measure!

Does Dunkin Donuts need to be testing their applicants to determine if they actually know the definition of a dozen? How silly is that?

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Copyright 2006 Bookkeeping R Us All Rights Reserved

This program intrigued me because of its inexpensive cost. However the old adage “you get what you pay for” certainly applies here. For those of you looking for the very basics Bookkeeper 2007 by Avanquest might seem the answer, but I found it difficult to nagivate. For those of you who do not have a strong understanding of bookkeeping basics you will find yourself frustrated. And if you are looking for help, well you will have to accept an ActiveX script everytime you use the help function unless you wish to adjust your browser security settings.

Some of the windows within the program close using the standard Window’s X, others by clicking on a cancel button, and others only by selecting another option in the side window or menu bar. Sometimes you are sitting there wondering what to do next.

You can add five additional fields to the vendor, employee and customer forms but you cannot add a vendor, employee, customer, account or list item on the fly. Bookkeeper 2007 allows you to set up a default email form, but I can’t figure out how to actual send an email as it is a multi step process and once you figure that out it doesn’t seem to work with Outlook.

Reports are limited and the ability to customize them even more limited. Filters are limited to date parameters and formatting is limited to font choices and in some cases positions of header and footer information. You can export to other programs however when exporting a payroll report to Excel the information did not come across smoothly and would require a great deal of formating in Excel. There does not seem to be a Microsoft Word export unless you are relying on a straight text file which once again does not come across into Microsoft Word without having to do some extensive formatting but there are options for Microsoft Works file formats which I did not test. However saving a report in a pdf format does seems to work well.

Live technical support will cost you $24.95 for the first 10 minutes and $2.95 for each additional minute per call. The basic cost of the program is $29.95, however if you are running payroll you will need to add an additional $10 to obtain the tax tables needed.

All and all, what could have been an good beginning product is made unuseable, in my opinion, by not providing what the beginner needs - a program that is easy to navigate and helps you do the basics easily. My criteria for a program is that I get it right off the bat. I have been using accounting/bookkeeping programs since the mid-seventies and there are very few I haven’t tried. I have to ask the question if I am struggling with this program, how can the average user ever be able to use this program.

Now I have to be honest, I am a QuickBooks ProAdvisor and as such encourage my clients to use QuickBooks products but it was with a open mind that I tried this product. It is inexpensive and while it’s clunky it will do some of the basics if you work at it. I strongly recommend downloading the trial version before you buy if you are still interested.

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Copyright 2006 Bookkeeping R Us All Rights Reserved

At the end of each fiscal year there may be adjustments you need to consider. These might include accruing or deferring a revenue or expense, reclassification of revenue or expenses, and inventory adjustments to match book balances to actual physical counts and values. Year end adjustments are changes made to accounts in order that your financial statements are properly stated.

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Copyright 2006 Bookkeeping R Us All Rights Reserved

QuickBooks Pro 2008 once again brings you the features you need to run your small business while not getting bogged down with the everyday bookkeeping tasks. As always you can invoice your customers, pay your vendors, handle payroll, receive customer payments and use all the other important financial tools and reports you need to succeed.

With QuickBooks Pro 2008 you have these added features:
(see below for notes listing application requirements, terms and conditions)

The ability to send emails directly from QuickBooks using Microsoft Outlook or Outlook Express.

Capture quickly billable hours online and from your Outlook calendar.

Allow your accountant to review data and make changes while you work.

Excel data import templates which help you easily import your customer, vendor and production information.

Improved help to locate answers to your questions quickly.

And Coaching Tips which help you learn how to use QuickBooks with the utmost confidence.

(see below for notes listing application requirements, terms and conditions)

Frequently entered business automatically classified

Payroll tools such s easy scheduled payroll groups and a to-do list for tax payment due dates

The new Payroll Center shows you dates for payroll, taxes and other liabilities at a glance and now has a new review, confirm and submit process that provides full confirmation that payroll has been rescheduled.

Multi-parcel shipping and added thermal printing support making it easier to process Federal Express and UPS shipments and create shipping documents right in QuickBooks

Advanced features letting you track costs for assembled products and inventory.

Advanced customization tools for creating professional looking forms

A Data backup wizard making it easier to store your data files

And of course as always, Free QuickBooks Support included for 30 days following registration for questions submitted online.

Application requirements, terms and conditions

Now remember in order to use any of the features associated with Microsoft Excel, Outlook or Outlook Express you have to own these products and have them installed on your computer. Versions of these application needed are 2000, 2002, 2003 or 2007.

To synchronize QuickBooks and Outlook you will need to download a free add-on of Contact Sync from the QuickBooks web site and the direct web address is www.quickbooks.com/contact_sync/. You can also synchronize using the QuickBooks Customer Manager with is sold separately. And by the way this is a great program which I will be reviewing later this month. Stay tuned!

To new QB Time Tracker online billable feature comes with a free 60 day trial period, after which fees will apply and again require Microsoft Outlook or Outlook Express versions 2002, 2003 or 2007.

QuickBooks Payroll requires a subscription, EIN (Employer’s Identification Number) and Internet access. Additional fees apply to Direct Deposit

In order to use the improved accountant review data and make changes while you work feature, your accountant must be using QuickBooks Accountant Edition 2008

There are no QuickBooks fees for using the shipping feature, but do remember that Federal Express and UPS will, of course, charge you there normal shipping fees and registration and agreement to terms and conditions are required.

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Copyright 2006 Bookkeeping R Us All Rights Reserved

QuickBooks 2008 is now available for pre-release ordering. Actual shipping dates for individual products will vary but users in a hurry will be able to purchase and download many new products as early as Oct. 1.

Some of the new functions you will see in the 2008 products are:

Available in QuickBooks Simple Start, Pro, Premier and Enterprise Solutions you will find context-sensitive, next-generation helping you to set up and start out right.

Improved process to import Excel software spreadsheets so you can import existing customers, vendors, or product information into QuickBooks which requires the sold separately business software applications of Excel 2000, 2002, 2003 or 2007.

Better Outlook integration so you can send emails directly from within QuickBooks. Outlook integration requires Outlook or Outlook Express 2000, 2002, 2003 or 2007. Outlook synchronization requires QuickBooks Contact Sync for Outlook tool, available for free at http://support.quickbooks.intuit.com/support/tools/contact_sync/, and Outlook 2000, 2002, 2003 or 2007. Synchronization with Outlook is also possible with QuickBooks Customer Manager (sold separately). Business software applications are sold separately.

Improved Invoice for Time and Expenses helps you review unbilled time and expenses for all clients and create an invoice with one click. Subscription, Internet access, Federal Employer Identification Number (FEIN) and currently supported version of QuickBooks required, sold separately. Additional fees may apply; including sales tax where applicable. Pricing and limitations vary per service.

New Time Tracker functionality lets you mark time in the Outlook calendar for billing and transfer to QuickBooks. Requires Microsoft Word 2000, 2002, 2003 or 2007. Excel integration requires Excel 2000, 2002, 2003 or 2007. Outlook integration requires Outlook or Outlook Express 2000, 2002, 2003 or 2007. Outlook synchronization requires QuickBooks Contact Sync for Outlook tool, available for free at http://support.quickbooks.intuit.com/support/tools/contact_sync/, and Outlook 2000, 2002, 2003 or 2007. Synchronization with Outlook is also possible with QuickBooks Customer Manager (sold separately). For more information visit www.quickbooks.com. Business software applications sold separately.

New Accountant’s Copy allows users to create file in single click and upload Accountant’s Copy file to a secure server. Works with all QuickBooks accounting software except QuickBooks Enterprise Solutions, QuickBooks Simple Start, QuickBooks Pro for Mac, QuickBooks Online Edition, Invoice Manager, Easy Estimate or Time Tracker and requires at least QuickBooks 2007. Payroll transactions cannot be adjusted. Note: Accountants wishing to work on clients’ QuickBooks 2007 files need QuickBooks Premier Accountant Edition 2007; and accountants wishing to work on clients’ QuickBooks 2008 files need QuickBooks Premier Accountant Edition 2008.

Payroll is now compatible with all QuickBooks financial software, including Simple Start. Subscription, Internet access, Federal Employer Identification Number (FEIN) and currently supported version of QuickBooks required, sold separately. Additional fees may apply; including sales tax where applicable. Pricing and limitations vary per service.

Get QuickBooks 2008 or find out more at : New Features in QuickBooks 2008

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