Tag Archives: Accounts Receivable

Is QuickBooks EMV Compatible?

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Many clients have contacted me regarding Europay, MasterCard, and Visa (EMV) chip credit cards https://en.wikipedia.org/wiki/EMV requesting more information on the technology, process, and requirements.

Cards with EMV Chips

Many of you have already received one or more EMV chip cards which have a small computer chip in the card that stores information digitally rather than relying upon the magnetic strip that we are used in the  in the past.  This change is to enhance security and reduce credit card fraud, more information on implementing these changes can be found at http://usa.visa.com/download/merchants/visa-merchant-chip-acceptance-readiness-guide.pdf & http://quickbooks.intuit.com/r/emv-migration/what-is-emv-and-why-do-i-need-it

Processing Transactions with EMV Chip Cards

EMV chip cards can be processed using three different methods.  However only the 1st option will increase security and reduce credit card fraud.

Equipment that uses an EMV Chip Reader AND EMV Compatible Software

Swipe the Magnet Strip in a card reader

Manually enter the Credit/Debit Card number

For more information on the EMV process see http://usa.visa.com/personal/security/chip-technology/emv-chip.jsp & http://quickbooks.intuit.com/r/technology-and-security/step-by-step-guide-to-emv-migration-for-small-businesses

EMV Compliant Software

Is QuickBooks EMV Compliant? The answer is, it depends on the version of QuickBooks the following QuickBooks Software versions are EMV compatible.

QuickBooks Online

QuickBooks Point of Sale Version 12 is EMV Compatible

2016 Quick Books Pro/Premier/Accountant is EMV compatible

16.0 QuickBooks Enterprise Solutions is EMV compatible

Keep in mind that having an EMV compatible version does not make the reseller’s sales transactions compliant.  You also need to process the EMV card with equipment that reads the EMV chip.

Is EMV Compliance Required by a Given Date?

Starting October 1st, 2015, liability for fraudulent credit/debit card transactions will shift from the card issuer to the merchant if the transaction uses an EMV chip card and is not processed on EMV compliant software & card reader.  HOWEVER,

Intuit is extending the EMV liability shift by six months for its QuickBooks Payments customers to allow everyone more time to transition. If you are a QuickBooks Payments customer and unknowingly accept a counterfeit EMV card using your magnetic stripe reader, Intuit will assume your liability for the fraud until March 31, 2016. For further details around Intuit’s extended liability shift, please refer to the liability chart here.Intuit has extended this date to March 31, 2016 for customers using their credit/debit card processing solutions.  https://support.quickbooks.intuit.com/support/articles/inf23795

Conclusion

I hope this helps explain the EMV concepts and implementation.  Please contact me if you have any addition questions regarding QuickBooks and the processing of EMV transactions at Ilene.eisen@ie-solutions.biz

Should I Start a New QuickBooks Company File?

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Quite often prospective clients call and say that there are so many errors in their QuickBooks Data file that they are thinking about starting the New Year with a new company file.  I discourage creating a new company file for the following reasons:

Using the Accountant Toolbox, company files can be quickly cleaned up or the general ledger balances can be corrected as of a given date.

If you create a new file you will need to maintain two files to access historical data and you may lose all your settings, memorized reports, templates, bank feed rules, etc.

Re-creating a company file with all the lists (Chart of Accounts, Customers, Vendors, Items, Terms, Unit of Measure, etc.) and open items (Estimates, Sales Orders, Open Invoices, Purchase Orders, Bills, etc.) can be daunting and prone to errors.

Please think twice before starting a new company file for an existing business that is currently using QuickBooks!

My Virtual Office

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This month I moved out of the office space I had rented for the last 8 years!  In the last year I have worked from the office, hotel rooms, airport lounges, my kitchen table, and anywhere else with an internet connection when I had to get work done.  I found that the only advantage to being in my office was multiple monitors!  For efficiency over the years I have moved more services and data to the “cloud” and this has significantly reduced my costs and increased flexibility!

Remote Access Software – This service allows me to log in with clients to work remotely on their desktop for training and problem resolution.

Webinar Software – This software gives me the ability to present webinars to large groups of people regardless of location.

Voicemail – This online service sends me an e-mail with my messages included in a sound file and a transcribed conversation that I can read easily.

QuickBooks – This software lets me e-mail invoices and estimates and the merchant services link allows customers to pay their invoices online.

Office 365 – This subscription gives me full Microsoft functionality anywhere any place. I also store my files using the SharePoint which is included in the service and synchronize the files with my desktop and laptop so I have all my files with or without an internet connection.

Internet Fax Service – This service accepts my faxes and sends me an e-mail with an attached PDF of the fax.

These services and software also allow me to more responsive and flexible to client needs.  They have also made my business more convenient for my clients.

 

 

How Can I Reduce Bad Debts and Increase Cash Flow?

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I have many clients who offer credit to their customers in their businesses and the only similarity the have to each other is that their Accounts Receivable has doubled over the past five years.  They all have had many uncollectable amounts included in their Accounts Receivable for companies that can’t pay them, or are now out of business.    A few of these past due accounts are good customers who have had financial issues and are working diligently on paying off their debts.  Although the business owners want to help their customers, they need to consider the viability of the business so they can continue to employ the staff and have a profitable business.

 

I’ve been advising and all my other clients to limit or eliminate the amount of credit they give to their customers for the following reasons:

  • To reduce or eliminate bad debts in the Accounts Receivable
  • Most business owners and their staff do not have the time or expertise to evaluate a credit history or credit report and set reasonable credit limits. Therefore they give credit too often to those who cannot pay their debts.
  • Many business owners and/or bookkeepers are not good at collecting and following up on delinquent accounts, so a late payment often becomes a bad debt without any follow-up.

 

If you are not going to give your customers credit, there are several options that you should consider:

  • Have customers pre-pay for products and services.
  • Have customers pay upon delivery for products and services
  • Transfer the risk of loss to a 3rd Party
    • Accept credit cards – Merchant fees paid are usually less than bad debts and this method will also increase current cash flow.
    • Refer customers to a financing or leasing firm.

 

Although giving credit is the norm in many businesses, I have seen a shift in this policy over the last few years.  As businesses change hands, new owners do not extend credit and they do not lose customers as a result of this policy.