Tag Archives: QuickBooks

Ilene Eisen to Speak at QuickBooks Connect

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Ilene will be speaking that the Intuit Conference QuickBooks Connect in San Jose, California, Monday October 20, 2014 she will be presenting Mastering QuickBooks Inventory in Pro and Premier. This session will highlight the inventory features and strategies that Ilene uses when working with client to create an efficient workflow and accurate reports.  The session complete description is:

Managing Inventory can be quite complicated in any business! QuickBooks has features and tools that will help non-accountants manage the process. This course covers inventory concepts to help you understand the process and then introduces features and tools to purchase inventory, sell Inventory Parts, and enter Inventory adjustments.

Management should also understand the concepts, and use the tools provided, review reports, and be an active participant in the process to enhance internal controls. For this reason, we will also discuss reports, the reconciliation process, and an evaluation tool to easily identify errors and issues.

There are various versions of QuickBooks and we will discuss the inventory features that are available in QuickBooks Pro, QuickBooks Premier, and QuickBooks Accountant version so that the user can assess their needs and purchase or upgrade to the version that is best suited for their Inventory needs.

New QuickBooks Enterprise Solutions Subscription Plans

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This month Intuit changed the way they sell NEW versions QuickBooks Enterprise Solutions (QBES), it is now sold on an annual subscription and will no longer function if the subscription is not renewed.  In addition to the Subscription, there are three packages that a customer chooses from, Silver includes Advanced Reporting, Gold includes advanced Reporting and Enhanced Payroll, and Platinum which includes advanced Reporting, Enhanced Payroll, Advanced Inventory, and Advanced Pricing.  Customers who currently own QBES will not be affected by this change.

Selling QBES on a subscription basis is a major change in the relationship between Intuit and the end user.  In the past a customer would purchase the software and had the option of purchasing the Full Service Plan (FSP) after the first year to keep the software current, if you did not purchase the FSP plan annually the software would continue to work, however you no longer receive product updates, online backup and technical support services.

The advantage of the subscription plan is that it is less expensive to add Enhanced Payroll and Advanced Inventory especially for customers with fewer users. The new price structure is also easier for customers to understand without having to price add-ons like payroll, Advanced Inventory and Advanced Pricing.  If the new structure reduces your cost, you can contact Intuit to switch to the subscription model, however this would be a non-revocable decision.

The disadvantage is that if you do not renew the subscription on an annual basis you will lose the ability to use or access your accounting software.

Saving Money on Monthly Expenses

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Lately I’ve been working with clients on their budgets.  I notice they spend a lot of time on maximizing the income section and then they treat the expense section like a ball and chain and feel they have no options.  I suggest clients review monthly expenses at least once a year.  Call vendors to see if they can reduce fees or change service plans.

I will call my vendors and ask about plan changes for cell phones, internet, software contracts, website hosting, and fax service.  I often find that my usage is examined and a plan change will save me money or provide additional benefits that I need.  These calls take time, but the benefit is ongoing savings.  Many times we wait until a contract expires to re-negotiate.  Sometimes these contracts auto renew or we are too busy to make changes when they expire.  Calling the vendors on your schedule gives you time to consider the options and make better choices.

I also suggest that clients call their banks about fees.  Quite often clients are paying numerous fees or keeping minimum balances on a large number of accounts.  One client had a credit line that he was using to maintain minimum balances in numerous accounts at the same bank. The banks want to keep business accounts and are often willing to write off fees or update the account to a different fee structure.

If you schedule a call once a year for multi-year and recurring expenses and you will be surprised at the ongoing savings that you can achieve.  Also look at the vendor and see how their services are meeting your needs.  I often find that changing vendors can also save me money, however this involves more time and unless you see significant advantages, this may not be the best strategy.

Technical Support Scams

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I wanted to make you aware of a Technical Support Scam.  I keep getting calls from someone who says they are from Microsoft or Windows technical support.  I know that these calls are not legitimate since I have not reported any issues and they are calling on my home phone which I never use for software registration purposes.   If you get one of these calls and you are not expecting a call from technical support you should not engage the caller.  For more information on this issue, please see the following Microsoft statement on their Safety & Security Center site:  http://www.microsoft.com/security/online-privacy/avoid-phone-scams.aspx

 

Tax Time Resolutions

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Once again we’ve seen another tax deadline come and go!  Each year preparing the books and records for the tax preparer is a task that takes time and energy from things that we would prefer to do.  For many it’s also a learning experience to see what your annual profits actually were.  Wouldn’t it be nice to know how you are doing during the year so you could make adjustments and increase your revenue?

Now is the time to talk to your tax preparer and accounting staff about your recordkeeping practices.  I have found that additional training and/or upgrading bookkeeping practices usually saves considerable time and increases the accuracy and timeliness of your records.

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.  

 

What is the best QuickBooks Program for Managing MY Inventory?

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Many clients have inventory and struggle with how to manage the inventory effectively and easily.  Although QuickBooks does have inventory functionality in QuickBooks Pro/Premier and Enterprise, there are various add-on solutions that are also be helpful for your specific needs.  To determine the correct version and add-ons I’ve created the summary below. Retail businesses should also review the Point of Sale section. 

Quick Books Pro

Inventory functionality is very basic.

  1.  Inventory features are designed for businesses that buys and sells the same items over and over again (ie Antique Shops buy and sell different items).
  2. These businesses do not assemble items or repackage them and only have one location.

QuickBooks Premier

Inventory functionality of QuickBooks Pro and

  1. Ability to assemble items (remove raw materials from inventory and replace with finished goods or repackage in smaller quantities.)
  2. Create Sales Orders to manage partial shipments of goods and manage unfulfilled orders

QuickBooks Enterprise Solutions

Inventory functionality of QuickBooks Premier and

  1. Ability to use custom fields in transaction to configure orders
  2. Ability to add-on Advanced Inventory (annual fee)
    1. Use Multiple Inventory Locations
    2. Track Lot and Serial Numbers
    3. Bar Code Tracking

QuickBooks Point of Sale (POS)

This is a separate program that integrates with the other QuickBooks programs mentioned but is designed to work in a retail environment and function as a cash register.   

  1. Ability to run daily cash register reports.
  2. Ability to track individual cashiers
  3. Bar Code Tracking
  4. Multi-Store ability
  5. Styles view to see inventory availably by 2 designated features (i.e. size, color)

Printing 1099 Forms from QuickBooks Company Files

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One of the tasks that many businesses struggle with in January is issuing 1099s and completing the reports.  I advise my clients to use the QuickBooks procedure for creating 1099’s rather than the timely and costly option of sending the information to an outside service to prepare the reports.   Many clients actually work with a tax preparer the first time to set-up the company file for 1099s, which is a great idea and allows you to learn the process for the next year. Here’s a short summary of the process you’ll need to follow to process your 1099’s and 1096:

Select Vendors from the top menu – Select Print /E-File 1099 – Select 1099 Wizard

You will see a listing of the activities that you will be guided thru in order to complete the task – Select the Get Started button.

Step 1 Select your 1099 Vendors – Vendors are subject to receiving a 1099 if they meet the income and statutory requirements based on business entity.  In this step we will only consider the statutory requirements based on business entity. 

Select all vendors that qualify for 1099s. Do not consider the vendor income requirements at this point, just select individuals, sole proprietors, partnerships, and anyone else who qualifies for a 1099 reporting. If you are not familiar with the requirements, check with your Tax Preparer for more information.  When you are done select Continue.

Step 2 Verify your 1099 Vendor’s Information –You will need the address and tax ID number for each 1099 vendor who will receive a 1099.  To save time, skip this step for now and we’ll complete the process in Step 4. Select continue and we will go back to complete this process later.

Step 3 Map Vendor Payment Accounts –Not all payments to vendors will qualify for 1099s, usually accounts that qualify are Cost of Goods Sold, Expense, and Other Expense accounts and most payments will be entered on Box 7. You should consult your tax preparer if you are not sure about reporting requirements.

 Step 4 Review Payments for Exclusions – This step gives you the opportunity to review both payments included and payments excluded based on the criteria defined in the previous steps.  Also QuickBooks will exclude all payments made by credit/debit cards, gift cards or PayPal in accordance with the IRS requirements. View both reports to verify that you have completed the set-up properly. When done select Continue.

Step 5 Confirm Entries – This step gives you the opportunity to confirm entries and on this screen you will see who needs additional information such as a Social Security number or Federal ID.  I usually wait until I get to this screen to research tax ID and addresses.  Any Vendors with incomplete information, can be edited in the vendor record.  If after calling a vendor you are informed that they do not meet the requirement for a 1099. Uncheck the 1099 vendor box in their vendor record or on Screen 1 of the wizard. You can now print the 1099 and 1096 forms, if you are not confident in the process ask your tax preparer to review your work.  When done, select Continue

Step 6 Choose Filing gives you the opportunity to print forms or e-file.  Please note that if you print forms you can reprint specific vendors or all forms at any time without changing your settings in Step 2.

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

Should I Process My Own Payroll or Use a Payroll Service?

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The best time to change payroll processing is at the beginning of the year.  Therefore it’s time to look at your payroll processing and determine if it meets your needs.

The first question is, to determine if you want to be responsible for preparing your payroll returns and paying tax payments…

  • I would suggest that only organizations with a full time Payroll or Hunan Resource specialist take on this responsibility since the fines and penalties can be substantial, if errors are made or deadlines missed.

The second question is, if you outsource your payroll, how do you choose a payroll processor or service?

  • If you are a small business and do not use accounting software, check with your Tax Preparer to see who they recommend or if they provide this service.
  • If your accounting software processes payroll ask if the accounting software company also offers full service payroll that will integrate with your software and post the payroll to your records saving you time and increasing efficiently, while handling the regulatory duties of filing payroll returns and making tax deposits.
    • Many large software vendors now provide full service options such as Intuit and Sage.
  • If you need job costing and/or you are billing customers for time it’s important to get a processor who will integrate with your accounting software.  Keep in mind that the best integration will be provided by the publisher of your accounting software as mentioned above.
  • If you need advanced Human Resources features you will probably be happier with a national payroll processor that has these options.

When making payroll decisions it’s always a good idea to check with your CPA and software consultant for additional information and insight on the issue.