Archive for the ‘QuickBooks’ Category

Making Groupon Work for Your Small Business

December 19, 2011 Leave a comment

QuickBooks Enterprise

Everybody loves a deal. Social purchasing sites like Groupon and Living Social work because they offer bargains with virtually no effort on the part of the purchaser. I myself have signed up for each of these sites and get deals for not only for my county, but all of the surrounding counties, the counties my parents live in, and the counties my in-laws live in. I’ve even signed up for Groupons in places I’ve wanted to visit just in case I actually get to go and need to know where to eat, drink, and sleep for a steal.

I’ve signed up for the more obscure deals, too: there’s Health Deals for those seeking to get in shape inexpensively and Wedding Channel in case you find yourself planning a wedding anytime soon. Somehow I’ve managed to get on lists without even trying, such as MyTownVIP and Amazon Local.

There’s a deal for everyone out there, but there still remains a question as to whether social purchasing is a bargain for the small business owner who chooses to market this way. Advertising through sites like Groupon is a significant investment, as not only do you need to slash the prices of your goods and services to entice purchasers, you also have to split what you DO earn with Groupon. In many cases, it ends up being a loss for the small business owner.

A recent Forbes article, Making Small Business Marketing Work, shared that social marketing is much like purchasing a list of leads; it’s an expense that might result in some repeat business, but the real results only come from cultivating and massaging those leads once they’re in the door. Provide the highest quality service, and the best possible product, and you’ll have caught your proverbial fish.

If you decide to go the social marketing route, you might need assistance tracking your sales in QuickBooks Enterprise. We can help with this.

If you’re looking to stick with more traditional methods of small business marketing, we can help with that too. Check out our marketing knowledge-base for some helpful resources and suggestions.


Why QuickBooks Enterprise

December 12, 2011 Leave a comment

QuickBooks Enterprise

When QuickBooks Enterprise first was released, and even with the first upgrade to 4.0 in 2004, we were tepid in our excitement. Sure, it ran reports faster for those larger data files and yes, if you had more than 5 users it provided a solution. QuickBooks is an easy accounting software to learn and it offered enough features to satisfy most small businesses. But the differences between Premier and Enterprise were not enough to warrant the higher price tag, unless of course you had more than 5 users.

But since the release in year 2005, the new features limited to Enterprise editions have filled in some much needed gaps in internal controls for small business and has added quite a few efficiency features for those businesses with large lists.

As you read about the new features of Enterprise, you too will understand why we here at QBalance have switched our “favorite” QuickBooks edition to Enterprise. Even with less than 5 users, this edition will make office workers more efficient and produce fewer errors, paying for the additional price tag many times during the course of the year.

Enterprise sells for $3000 retail (call us for pricing) and Intuit encourages annual upgrades by offering the upgrade at a price of $850 per year. This pricing structure is the equivalent of purchasing the latest edition once every four years, which, with the change in technology, is a very fair pricing strategy and will give the business owner access to the latest editions every year. Be sure to keep this upgrade price of $850 in your annual budget. Failure to upgrade one year means paying full price next time you do decide to upgrade. Pricing policies are Intuit’s policies and could be subject to change. Also keep in mind that your data file, once upgraded to Enterprise, is not backward compatible to the Premier and Pro editions.

One of our favorite features of Enterprise is the advanced Permissions offer control over who has access to your financial information. Giving your staff permission to access all features of QuickBooks is risky business. Consider:

  • If fraud can be rationalized by an employee who has an opportunity to commit a fraud;
  • the employee has additional outside pressure or incentive to respond to that opportunity;
  • and if conditions in your business are such that “getting caught” seems to be an unlikely scenario

your business is vulnerable.

Too much information provided to employees who do not need the information to do their jobs creates a ripe environment for fraud. Such was the complaint of many businesses that use QuickBooks. The inability to limit users to just those functions and features that permitted employees to do their job efficiently meant the employees had access to financial information and changes to financial information that could provide fraud motivation to the disgruntled or financially distressed employee.

All that has changed with QuickBooks Enterprise. A robust permissions and access features have been added to the Enterprise suite of software. Users can now assign distinct access levels, including view-only, create, modify, delete, and print, to over 155 separate entitlements. Plus print a report of each users permissions for periodic review. Plus selectively assign certain rights only previously available to the admin user . And finally an “always on” Delete report which can no longer be turned off!

For specific screen shots on how this works see:

The 12 Days of Year End To Do’s

November 28, 2011 Leave a comment

PayrollAs we roll into the final month of the year, the question lingering on everyone’s mind is whether or not Black Friday and Cyber Monday are counted within the Twelve Days of Christmas.

If you’re a payroll professional, you might be thinking less today about where the hottest deals on the web are, and more about what needs to be done within the next few weeks to prepare for year end. Early December is the perfect time to preview your W-2s to make sure they will print correctly come December 31, as you still have a payroll or two to update missing taxable fringe benefits.

Things To Look Out For

  • Check to make sure the Federal and state tax ID is correct. Also check the spelling of your employees’ names, as the names on the W-2 should match the names they use on their tax returns (ex – Mike’s legal name might be Michael).
  •  If your employees are covered by a defined benefit or defined contribution plan, then it is important that Box 13 (retirement plan) is checked. To perform this task in QuickBooks, go to:
    • Employee center > edit employee > change tab to Payroll and Compensation tab
  • If you are an S Corporation, check if  the owner has taken a reasonable wage for the services provided during 2011. The IRS has added plenty of new auditors, fully trained them on this one issue. If you don’t take reasonable compensation you could be raising a red flag on your corporate tax return saying “AUDIT ME.”

Also for S Corps, don’t forget to include the cost of the health insurance premiums for the owners in their W2s.

Create an Addition payroll item:

1. Lists menu> Payroll Item List >Right Click and select New payroll item

2. Select Custom Setup and click Next

3. Select Addition and click Next

4. In the Name used in paychecks and payroll reports window, enter the name of the new payroll Addition item (“S-Corp In”) > Next

5. For the Expense account, enter the account that normally holds the gross wages for S Corp owners (officer compensation* ) >Next

6. In the Tax tracking type window, select SCorp Pd Med Premium from the drop-down list > Next

7. Click next in the tax window (QuickBooks does a good job of selecting the appropriate taxes)

8. In the Calculate based on quantity window, select Neither > Next

9. In the Default rate and limit window, clear both fields (they should be blank) and click Finish

Create a Deduction payroll item:

1. From the Lists menu > Payroll Item List > Right Click and select New payroll item

2. In the Select setup method window, select Custom Setup > Next

3. Select Deduction > Next

4. In the Name used in paychecks and payroll reports window, enter the name of the new payroll Deduction item (“S-Corp Out”) > Next

5. Skip the Agency liability field, in the Liability account (employee-paid) Type S Corp Health Reclassified> click on the tab on your keyboard and add the new account as an expense account and make it a sub-account of Health Insurance Expense. > Next

6. In the Tax tracking type window, select None > Next

7. In the Taxes window, do not make any selections. > Next

8. In the Calculate based on quantity window, select Neither > Next

9. In the Gross vs. net window, select net pay > Next

10. In the Default rate and limit window, clear both fields (they should be blank) and click Finish

Now create a paycheck for each S corp owner that is covered by a company health insurance policy.

Use S-Corp payroll items you just set up: This adjustment can be made in a separate paycheck using unscheduled payroll or in the next regular payroll

1. Click into the Review Paycheck

2. In the Other Payroll Items field, select the Addition item created, S-Corp In, from the drop-down list, and then enter the premiums paid for the year in the Rate column

3. On the next line in the Other Payroll Items field, select the new Deduction item you created, S-Corp Out and enter the same amount entered for the Addition item in the Rate column. You will notice that this adjustment will have a calculation for federal and state income tax withholding taxes (that should be it, if there are other taxes withheld, then the payroll item was not setup properly) Change the federal and state income taxes withheld to zero and discuss adding that same amount as additional withholdings on the next regular paycheck. There should be no other taxes deducted.

4. Once the Check Amount is zero, Click OK

*If all your payroll is posted to payroll expenses and not broken into departments or classes of employees, call or e-mail us to discuss a support session to get this problem resolved for you.

Fringe benefits provided by the employer are includable in the W-2. Common fringe benefits include:

  • Taxable cost of group term life insurance over $50,000
  • Nontaxable sick pay
  • Employee personal use of a company vehicle
  • Employee discounts over certain limits
  • Meals
  • Bonuses
  • Awards

Fringe benefits do not include using company time to get great deals on gifts for your loved ones. Enjoy Cyber Monday!

Thanksgiving for QuickBooks Pro Users – The Inflation of Things Other than Macy’s Parade Balloons

November 21, 2011 Leave a comment

QuickBooksAccording to the American Farm Bureau Federation,  a traditional Thanksgiving dinner complete with turkey, stuffing, cranberries, and my personal favorite, pumpkin pie, will cost you 13% more this year than last year.

Perhaps it’s time to usher in a new era – Thanksgiving lasagna, anyone?

Food and energy prices aside, market watchers and analysts are suggesting we small business owners perhaps need not fear inflation as we have in the past. Whether adjusting your own pricing for inflation or other reasons, QuickBooks can help you accurately update your financial records, providing better balance sheet and income statement reporting for your business.

Keeping on top of your profits per service, per customer is important.  So when your costs change, it is important to revisit your sales pricing to determine if an adjustment will help or hurt your business. In QuickBooks Pro and Premier desktop edition, adjusting prices is completed in the Item list.

Click on List menu, then Items

Right click on an item name, select edit item and then replace your old selling price with the new one.

Your existing transactions will not be changed, only new transactions will use the new pricing. So be sure to review  open sales orders or active estimates created with the old pricing to determine if you need to update with the new pricing, as this will not happen automatically.

If a vendor has changed many cost prices, you can easily identify those items in your item list and change in a list view, similar to working in excel:

Click on Edit menu; then Add/Edit Multiple List Entries

How to Change Prices in QuickBooks

How to Change Prices in QuickBooks

For those companies that encounter random price changes from vendors through the year, consider upgrading to QuickBooks Enterprise. The 2012 edition introduced a new feature; whenever the cost changes on a purchase transaction, you can have QuickBooks change the selling price. The settings can be applied to each item as to whether you want to approve the price change or just automatically change the selling price. On each item, you can set the markup for that item over cost.

Automatically change prices when my costs change

Automatically change prices when my costs change

I’d like to wish you and your family a very Happy Thanksgiving this week! And if it isn’t too expensive, have an extra slice of pumpkin pie on my behalf.

Memorized Transactions: Boosting Efficiency in QuickBooks

November 14, 2011 Leave a comment

Every minute in your busy work day counts. Wouldn’t it be great if we all had our own personal robots to help with those more mundane tasks in your day?

Although not as cool as having your own personal robot, QuickBooks does allow you to set up some robotic processes. For example, you can set up recurring transactions to record at regular intervals over a period of time.  Choose to record automatically, have QuickBooks remind you,  or just add the transaction to a list and it’s ready for entry with one mouse click at any time.   A recurring transaction that has been set-up in QuickBooks is called a memorized transaction.  Memorized transactions reduce mistakes, keep better tabs of cash in the bank, and increase accuracy.

Here are examples of recurring transactions that will save you time to set up as memorized transactions in QuickBooks:

Recurring outgoing cash flows

  • Loan or lease payments
  • Recurring bills in QuickBooks
  • Recurring checks in QuickBooks
  • Monthly health insurance bills
  • Monthly electronic withdrawals from checking such as internet access payments or
    business insurance installment payments
  • Rent

Recurring sales in QuickBooks

  • Recurring sales transactions
  • Rent collections
  • Monthly installments payments due from customers
  • Repeating tuition invoices

Recurring purchases orders in QuickBooks

  • Purchase Orders that are repeated with many of the same items

Recurring journal entries in QuickBooks

  • Recurring Monthly depreciation journal entries
  • Allocation of overhead to other departments

Memorizing must be done while the transaction activity window is open.

  1. Enter the transaction as you would like it memorized
  2. Control + M or from the edit menu select “memorize”
  3. Enter a name that will help you recognize the transaction
  4. Complete the options: How often, Next Date to enter, Number of remaining payments
  5. Retrieve and use the memorized transactions from the list menu (or use shortcut  Control key+ T)
  6. The transaction template you used to create the memorized transaction can be saved as a valid transaction, or cleared

From this list window (control + T) you can:

  1. Permanently discontinue a memorized transaction– highlight and delete the transaction (control + D).
  2. To keep the transaction on the list but not active, highlight and edit the transaction (control + E).
  3. Change the date or the frequency by highlighting  and edit the transaction (control + E). .
  4. Occasionally there is a need to change a the amounts within a memorized transaction (see below). Whenever a change to the amount is made, be sure to confirm that the date of the next transaction is correct.   The date of the next entry appears on the memorized transaction list (control + T).

To modify a dollar amount or account of a memorized transaction, from the list window (control + T)

  1. Highlight and enter the transaction
  2. Change the information that needs modifying
  3. Control + M to memorized, and from the pop-up window, click on replace transaction
  4. Clear the transaction window
  5. Return to the memorized list (control + T) and review the settings of the memorized transaction (highlight and edit -control + E)

Transactions which cannot be memorized include payroll checks, time records, bill payments, sales tax payments or receipts or deposits of payments.

If you need help making corrections, leave a comment here or feel free to give us a call/send an e-mail. We can solve many problems using remote access, telephone or e-mail support.

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Advice for Year End Planning

November 7, 2011 Leave a comment

I woke up this morning with an extra hour (Thank you Daylight Savings Time) and realized we’re in November. Where has 2011 gone? I guess time flies when you are fighting rogue tornadoes, random Northeastern earthquakes, hurricanes, freak snowstorms, and week-long power outages.

Given that it’s an election week, it seems appropriate to look forward to the future instead of dwelling on the past (and I know that’s easier said than done for our friends still surviving without power  from October’s wintery woe). As a QuickBooks Pro Advisor, I advise my clients not to lose sight of how quickly year end is approaching and to start pulling together documentation needed to determine April’s tax liability. Well maintained books help your CPA crunch the numbers to determine your tax bill.

QuickBooks provides an excellent year end checklist  to get your books ready which can be accessed by going to Help Menu > QuickBooks Help > Type “Year End Guide” into the help search box.

QuickBooks Checklist

You can also visit Intuit for an even better checklist (although note that this will download a Word document to your downloaded files folder).

Of course, don’t forget to plan how you can make next year even bigger and better for your business. Developing a sound budget for 2012 that includes anticipating sales as well as with forecasting expenses for the year that typically come along with growth. You can find a great budgeting tool in QuickBooks under the company menu > planning and budgeting tools.

Unless you do the brainstorming necessary to determine exactly how you will grow, the preceding point becomes moot.
Much of business growth comes from increased sales. In order to free up some of your time, think about turning over your payroll functions to Intuit who will pay the taxes and prepare the forms. Call us for quotes (800-216-0763).

In addition, if you are not using a CRM (Customer Relationship Management tool), it may be time to investigate one that will work for you. We offer a CRM that gives your sales team access online to the QuickBooks transaction history for just their customers.

Key features of a CRM that will lead your team to high productivity are:

1. Tracks sales leads, phone calls, emails and reminders

2. Track effectiveness of marketing campaigns

3. Schedules follow-ups for tasks

4. Eliminates duplicate entry and enforces business processes set up by management

5. Offers management increased awareness of clientele and sales opportunities

6. Offers a customer and vendor portal

Closing out 2011 with proper planning will get you off to a fast (and hopefully weather-free) 2012.

Small Business Investments with the Biggest Payouts

October 17, 2011 Leave a comment

As we dive into the last quarter of 2011, a key focus for business owners will be developing next year’s budget. This recent article from Inc. Magazine gathered expert advice on where allocating resources may be most beneficial for growing your business. Below is a summary of the recommended five best investments with our suggestions on how to integrate QuickBooks into each of these solutions.

1. Employee Training: Offering opportunities for growth and development adds to employee satisfaction and retention. You can find budget-friendly opportunities to help employees expand skills, such as our QuickBooks Training course via CD with telephone support.

2. Technology:  Outdated software inhibits productivity. If your QuickBooks is running too slow, it may be time for an upgrade to QuickBooks Enterprise.

3. Human Resources: If your business is big enough, it may make sense to outsource this function to someone with the expertise to stay on top of the productivity of your employees. Otherwise, invest your time through self-training in staying up to date on everything from hiring to starting a payroll. For a good start, check out our HR resources page here.

4.CFO (or part time consultant): Few small business owners have the capital to invest in a full-time Chief Financial Officer, but having someone who understands your company’s net flows is critical. QuickBooks can be an interim solution to get you started on your budget, and help raise red flags when profits aren’t meeting expectations. See here for a quick overview.

5. Acquisitions: As the Inc. article notes, you should only seek mergers if your own company is in a stable position. If you are in a position to acquire another business, contact us for help in reviewing the old file prior to transferring the information to your file.

Making wise investment decisions can help your business grow even in the midst of a struggling economy. Where will your business be spending next year? Feel free to comment and leave suggestions for fellow entrepreneurs!