Tag Archives: MAS90

Accounting Software Formats

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Many firms are looking to upgrade or replace their accounting software.  They look forward to a more efficient system but are concerned about making such a large change and the consequences of making the wrong decision.  In the past we looked at fairly similar features and the higher the price the better the software we found.  Today all bets are off and it’s hard to even compare prices of possible solutions. 

The accounting software ecosystem has changed and there are terms that we may not be familiar with or we may not completely understand.  In this article, I’d like to discuss the options:  cloud applications, hosted software, client-server software, and desktop software.  All of these options are very different and the option you choose will significantly affect your access, functionality, workflow, and costs.

Cloud Applications are programs that reside on the software provider’s servers and they are installed and updated by the provider.  You will not need to maintain servers or take daily backups, examples of such applications are QuickBooks Online, NetSuite,and  Xero. 

Hosted Applications are not really a program but a hybrid solution where you select an accounting solution that meets your needs and it is installed on a server provided by a “hosting” company.  This option allows you to choose a software package that meets all your needs without having to maintain a server and the necessary IT staff. 

Client Server Applications are programs that reside on your server and are accessed from various workstations.  The computing is performed at the server and therefore is faster and does not require as robust workstations.  

Desktop Applications are programs that vary from very basic to advanced software that reside on your workstation/computer,  These applications can be single user or accessed by other users on your network. The computing is performed at your computer and will be dependent upon the speed of your computer (and network if shared with other users) Examples of such applications are QuickBooks, and Peachtree. 

I hope this summary has helped you understand the Accounting Software options and will help you narrow down an appropriate software for your business.  

 

Making the Most of Next Year!

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Grow your business next year by making wise choices based on timely and accurate information!  This information is often at your fingertips and many clients don’t take advantage of this valuable resource. 

Each year I get many calls asking me to help companies gather their data and correct their records so they can submit them to their tax preparer for use in processing their tax return.  These clients tend to view their accounting system a recordkeeping device for tax preparation and forget the advantages of using their records to help make intelligent management decisions on a timely basis.  When you wait until after year end to enter transactions you’ve lost the ability to use the information timely for management purposes and you are more likely to have errors and omissions in your records.

My advice to you is to record transactions timely and use the reports and dashboards that your accounting system provides to you!

If your accounting system does not meet your information needs you may need more training or you may need to upgrade your software.  Now is the time to determine if you have a training issue or you need to upgrade.  If you need to Upgrade, I suggest contacting your tax preparer for advice, referrals, and/or assistance so you can start the New Year getting information that will help you manage your business.

Have a prosperous and healthy New Year and if there is anything I can do to help you please contact me at Ilene.eisen@ie-solutions.biz

Year End Strategy to Reduce Taxes and Increase Profitability

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Many companies will be closing their books for the year at the end of December.  Although many folks feel the year end activities start in early January with bank and account reconciliations, I believe the process should begin in the fall.   If management and the accounting staff takes the time to review the books 2 -3 months before year end and make any necessary adjustments and corrections, they can give their tax advisor a better idea of the annual income.  Doing this before year end gives the company a chance to estimate taxes, purchase fixed assets, make plans for funding retirement programs, and plan for cash needed in the next year.

I see too many companies go to their tax preparer just before the tax deadline and pay tax when there were purchases that they could have made to reduce the tax burden and increase productivity.  I also find companies that are unhappy with their accounting software and wait until the beginning of the year to replace it or begin the search for a better product.   Keep in mind that before year end is the time to purchase the tools and equipment that will help you achieve or maintain your profitability in the future.  Also this is the time to work with your financial advisor and tax preparer to plan for the best year ever.

Should I choose an In-House, Hosted, or Cloud based Accounting Software Solution?

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Lately I’ve received many calls asking about cloud based accounting software solutions and in particular QuickBooks Online.  My answer to these questions tends to be a lengthy discussion of the needs of the client.  Here are my thoughts…

Find the software that meets your needs first.  Many cloud applications require the use of various add-ons to achieve the total solution while in-house software may have all the functionality needed in one product.  If the in-house product is a better match for the business, it can be hosted by various companies and you still have the option of a 24/7 solution. 

If you have a cloud based or hosted solution, you can access your data and program 24/7 and multiple users have access from any location or device that connects to the internet.  That sounds great but there are the issues to address:

  • Connectivity – Vendor issues that may not allow you to access your data, what is their history?
  • Security – What security is available and does it meet the legal requirements of you industry?
  • Costs – Expect a monthly fee per user or company file.  I am not a fan of free solutions.
  • Backups – Do you have the ability to download your data in a usable format?

If you choose an in-house solution you have more control, however there are also issues to address:

  • Connectivity – Do you have remote users that need to log into the system?
  • Security – How will you provide the proper level of security for your business?
  • Costs –What are the software costs, annual renewals/updates, and cost of maintaining server?
  • Backups – What is your backup strategy?

These are just some of the issues you will need to consider.  

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.

 

 

 

 

 

ie Solutions included in the “2008 Pacesetters, the Select 100”

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“ie SOLUTIONS” of Monterey was named as a “2008 Pacesetters, the Select 100” in the Accounting Technology Supplement “. Ilene Eisen, CPA. CITP was given special recognition for Accounting Software sales and support of MAS90/200 &  Quick Books Enterprise Solutions Software.

“ie SOLUTIONS” is a Monterey-based consulting firm that specializes in providing integrated accounting software and organization information systems solutions. By specifically targeting accounting software, ie SOLUTIONS provides a greater efficiency, higher quality, and timeliness of information for its clients.  “ie SOLUTIONS” currently installs, supports, and provides training for  Quick Books Enterprise Solutions, Quick Books Point of Sale, Quick Books , MAS90, MAS200, , and Business Works Gold. Owner Ilene Eisen has combined her formal education in Information Systems with over 30 years of accounting experience to create a solid foundation for her company and accounting software consulting practice.