Author Archives: Ilene Eisen

How to Select a Credit Card Processor

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Many of my clients accept credit cards for products and services and they often use their bank to provide this service rather than using other vendors.  I think this is a mistake to go directly to any one vendor without comparing the different processors first.  Since this can be a difficult decision and there are a lot of companies asking for your business here’s a strategy to help you through the process and compare competing offers.

Does this processor work with my billing and accounting software? 

  • Can you use one process to make the sale and charge the customer’s credit card?
  • How will acceptance of credit cards affect your bank reconciliation process?
  • Do I need to purchase additional software to enhance the process?

The first vendor I would approach is your accounting software vendor.  Many accounting software vendors provide additional modules or their own credit card processing that makes both the sale and the bank reconciliation easier.  I normally look at the software vendor first and see what they have to offer.  I sell & support  QuickBooks (by Intuit)  software and the  clients using Intuit Merchant services spend less time processing a transaction and considerably less time reconciling their bank account.  I also support Sage 100 (formerly MAS 90/200) and clients can save time using their credit card module but do not necessarily need to use Sage Credit Card processing to achieve these benefits.   To insure full disclose I just want to mention that I do sell Intuit Merchant Services.

What are the rates that I should pay?

Credit card fees depend upon many variables including average sale, sales volume, credit or debit cards, type of credit card, annual fees, monthly fees…  Rather than trying to compare this complicated billing scheme, most vendors will ask for a copy of your last few statements and do a price comparison for you.  If they are not less expensive that your current provider don’t be shy and ask for a match of your current pricing, I’ve seen this reduce fees quite often.  Don’t let the rates dictate your entire decision, consider the any additional accounting fees to reconcile the account and verify that you have received all your funds rejected cards. Lost revenue due to a lack of reconciliations and follow thru can offset the cost savings quickly. Also consider the cost of credit card terminals and additional equipment.

Do I rent or purchase the credit card terminal?

  • Some software packages do not require a terminal and the user can enter the credit card number directly into the software or smart phone so you may not need a terminal.
  • Renting a terminal can be quite expensive but if you have any technical issues, the terminal is usually replaced free of charge.
  • Purchasing a terminal is the most economical but you will incur the full cost at the time of purchase.  Many processors will discount the terminal or offer cash incentive to offset this cost, so make sure you ask for any promotions available.

What length of Contract should I agree to?

Many processors will require a multi-year contract.  I recommend that you ask for a contract with no minimum time required and no cancellation fee.  Therefore you can change processors if you are not happy or you find a better fit with another provider.

Conclusion

I hope this helps in making your decision.  Please contact me if you need additional assistance.

 

Hiring Qualified Employees

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Hiring Qualified Employees

This week I received an e-mail from client asking me if I knew of anyone with experience in a particular software package for a managerial opening in a firm.  I actually get this question quite often and could probably make a fortune as a referral agency.  However the question always strikes me as odd and wrong.

Finding Qualified Candidates

We really need to fill our job opportunities with qualified candidates that can perform their jobs with a variety of skills and tools that the employer uses.  A qualified manager should be able to learn new software and adapt. I’m probably aging myself with this comment but imagine a journalist in the 1970 who applied for a position, would experience with a specific brand of electric typewriter be the first question asked?  I’m assuming not.  I feel we should hire employees with experience that pertain to the job without regard to specifics that can change over the years.  Accounting software changes but leadership skills and knowledge of accounting principles will help a manager adapt to the changing business environment.

Testing Prospective Candidates

I’ve also been approached by employers who are asking for a test to determine the capabilities of prospective employees that say they have experience with particular software or task.  May clients asked me this and I say I did not have a test.  Creating a test would be cumbersome and should really be individualized to the job duties.  I’ve seen tests on the internet but I’ve never been impressed with the results.  Many employers use these tests with disappointing results.

Extended Interviews

I’ve had clients who decided to have a prospective employees work for a few hours with pay so they to assess their skills.  I’ve also seen employees work with temporary employment agencies so they can really see an employee’s skills before hiring with great results.  Keep in mind that if you use one of these strategies, don’t forget the goal is to find a qualified employee not to find  someone who can start on Monday!

Client Experience

I had a client in desperate need of assistance.    The applicant had a background in the software working at high level in a financing company.  When asked to perform routine tasks for an entry level bookkeeper in a distribution company she was unfamiliar with inventory control concepts and workflow.  The company decided that she was bright and could learn the job and hired her.  She quit the job within 3 months when a better offer requiring her previous skills came in.  Although she appreciated the company for giving her a chance, she felt that she did not have the proper background to excel at the job and was frustrated with the position.  The company was also frustrated since they had spent time training a new employee in the software (but not distribution concepts) and could not understand why she not performing the job duties efficiently

Getting the Most Out of Training

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Quite often clients and other CPAs ask me about good training classes for accounting and for specific software so I thought I’d share my thoughts on this topic.

Free Training

Most software publishers have free videos on their website or a link to u-tube.  QuickBooks even has an option on the help menu called “Learning Center Tutorials”.  Most videos and tutorials are short and can be viewed multiple times. You can also type the name of your software and the word video into your internet browser to search the internet for additional videos that are posted on U-Tube or other sites.

Short Classes and Webinars (Recoded & Live)

When looking for targeted information, short classes and webinars are an excellent source of training.  For example if you are interested in reports,  budgets, online features, annual updates of new features,  or other specific areas webinars or short classes at conferences or seminars are an excellent sources.  To find out about these options check with your industry groups, software publisher website, or get recommendations from colleagues.  I personally teach webinars for K2 Enterprises   but there are other venues that you can also check.

Full or Half-Day Day Live Classes

When looking for good overview, check on full or half day classes.  These classes cover a lot of material and will give you a good overview.  One  of the benefits of attending a live class in person vs online is that you get a chance to network with peers and get an insight of how they are addressing the issues you are all facing each day.  Take time to listen to their questions and network at breaks, this is a huge resource that I see is quite often overlooked.  I usually do not recommend hands-on classes since this type of class can only proceed as fast as the slowest student.  However, I would recommend that you bring you laptop to the session so you can look at specific features mentioned if desired.  I teach classes for   K2 Enterprises  and one of the benefits of this company is that you can download the practice files to follow along or work with at a later date.  When choosing a vendor, check your industry groups and the software publisher for classes.  When selecting a class be careful to take a good look at the session description of what will be taught, don’t be satisfied with words like basic, or advanced, make sure you’re interested in at least the majority of the specific topics covered.

How Often Should I Update my Accounting Software?

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I have found that I am asked quite often if it’s really necessary to update your accounting software with every update from the software publisher.  My response is that it depends on your software so here are my thoughts.

QuickBooks Products – These products have an annual update that is generally available in the Fall. Below I have discussed each product separetly.   

  • QuickBooks Enterprise – This software can be purchased once and then the customer pays an annual fee to keep the software current.  If you don’t pay the annual fee you will have to re-purchase the software at a later date when you want to upgrade.  I recommend paying the annual fee since this keeps you current and also provides an online backup and unlimited Technical Support.  With this said, you can choose not to install an update if the timing is not convenient.
    • When using Intuit’s Payroll, Merchant Services, or Online Banking, all of which I highly recommend, you need to stay at the very least within three years of the current version.  Therefore updating at least once every three years is required. ***The 2010 versions will be phase out in the Spring of 2013. *** 
  • QuickBooks Pro or Premier – This software is purchased without an annual maintenance agreement, to get the new version you need to re-purchase the software.  I recommend that you stay within three years since this keeps your software up to date with operating systems, browsers and hardware.  I would check each year to see what new features have been released and evaluate the advantage of using these features even if your software is less than three years old.  Since the new version is released in the Fall, it makes sense to upgrade in the fall to get the best pricing, early use of the software, and trigger the expense for a calendar year tax deduction.
    • When using Intuit’s Payroll, Merchant Services, or Online Banking, all of which I highly recommend, you need to stay at the very least within three years of the current version.  Therefore updating at least once every three years is required. ***The 2010 versions will be phase out in the Spring of 2013. ***

Sage 100 (Formerly MAS90) – This software can be purchased once and then the customer pays an annual fee to keep the software current.  I recommend paying the annual fee.  If you don’t pay the annual fee you will have to re-purchase the software at a later date if you want to add users, modules or additional functionality.  If you do not keep the maintenance current you will have to pay all back maintenance or re-purchase the software which is extremely expensive when compared to the annual maintenance plan.

QuickBooks Payroll Strategy to Reduce Your Workload and Increase Accuracy

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Can I help you with your work load?

As a CPA, I know that certain months such as October, January, April, and July have a significantly increased workload with tax deadlines.  I have a solution that will reduce your workload and help you focus on more profitable tasks in your firm.

Having clients use QuickBooks Assisted Payroll in conjunction with their QuickBooks software, will allow the client to process payroll in-house and print payroll checks and/or check stubs (direct deposit), and Intuit will perform all tax filings and pay tax deposits directly from the clients account.  The client’s advantages to using Assisted Payroll are cost, ease of use, and no need to post the payroll after the fact (payroll is recorded automatically). 

How will this save you time in your busy months?

  • You don’t need to prepare payroll tax returns
  • Payroll transactions entered by entering employee’s specifics & time worked
  • Payroll tax deposits & payments are paid timely from your client’s bank account.
  • Intuit will take responsibility for errors or omissions on payroll tax returns
  • The cost is less than most outside service bureaus
  • The process is easy and clients are happy with the ability to print checks and technical support.

I believe that this service is very helpful to both you and your clients and, since it’s built into QuickBooks, it’s easier to use and more efficient.  Not using Assisted Payroll for a QuickBooks client is like buying a salad, throwing out the tomatoes and going to the store and purchasing the same quality tomatoes for the salad.

*If you are interested please contact me so that we can set up your clients to process through Assisted Payroll.