Get Extra Cash for the Holidays

It's that time of year where everyone could use a little extra cash. Did you know that one out of ten Americans have unclaimed money? Yes, it is true! You may have money from funds left in an abandoned bank account, an uncashed payroll or commission check, an uncashed refund check, or any checks that were undeliverable due to a change of address.

Due to a law called "Escheat" financial institutions and companies are required by law to report any unclaimed money. Escheat is defined by Wikipedia as, "In commerce, it is the process of re-assigning legal title in unclaimed or abandoned payroll checks, or stocks and shares whose owners cannot be traced, to a state authority (in the United States). A company is required to file unclaimed property reports with its state annually and, in some jurisdictions, to make a good-faith effort to find the owners of their dormant accounts. The escheating criteria are set by individual state regulations."

How can you find out if you have unclaimed money? Go to the website http://unclaimed.org/. Click on the state you live in and enter your name. You may see your name on the list. Be sure to check other states you have lived in and other names you may have used.

Caution: There are other sites out there that will charge you a fee for this service. Do NOT use those sites.

Both my husband and I had unclaimed money due to an address change which resulted in undeliverable commission and interest income checks.

So head on over to http://unclaimed.org/ maybe you will be one of the 'one out of ten!'

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com

Don't throw out those receipts!

If you are like many busy business owners you don't have time for massive bookkeeping and paperwork. As someone who likes to streamline their time and paperwork you may be tempted to toss out the receipts for office supplies, meals out, and fuel because you know the debits or charges will be listed on your statement from the financial institution. This is typical behavior for business owners on the go. However, you need to know this...

The IRS rarely deems those financial statements as proof of eligibility of the deduction because they do not have enough detail about the expense. Furthermore, failure to keep adequate records has been deemed as negligence by the IRS.

Not only should you keep the receipts it is advisable to makes notes on the receipt (and in your QuickBooks memo field) of any pertinent information.

To learn more about  proper record keeping visit http://www.irs.gov/publications/p583/ar02.html.

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com

Account Numbering System

Question: Do I have to use numbers in my chart of accounts in QuickBooks?

Answer: QuickBooks permits the user to either use account numbers or not. This is a preference that can be set by going to Edit>Preferences>Accounting>Company Preferences, check mark if you want to use account numbers or do not check mark if you prefer not to use account numbers. Even though you may choose not to use account numbers, the account numbers are still there, they are just not visible. Therefore if your accountant prefers account numbers (and s/he will) s/he can set the preference to view account numbers when reviewing your file.

Even though you may not be using account numbers if you add a new account to your chart of accounts you should temporarily enable the account numbers so that the new account will have a number. Do not add this number in the "account name" field, it is not the same as adding it in the "account number" field.

When adding a new account be sure to give it the correct number...the numbers do mean something!

Here is an example of a standard numbering system.

1000 - 1999: Asset Accounts
2000 - 2999: Liability Accounts
3000 - 3999: Equity Accounts
4000 - 4999: Revenue Accounts
5000 - 5999: COGS (Cost of Goods Sold)
6000 - 6999: Expense Accounts
7000 - 7999: Other Revenue
8000 - 8999: Other Expense

Double check with your accountant for their numbering system, they may have their own system.

If you prefer not to use numbers, once you have added the new account, go back to the preferences and uncheck "Use Account Numbers" by doing it this way you and your accountant will be happy.

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com

Choosing a Business Structure

Your type of business determines which income tax form(s) you have to file with the IRS. Common business structures are sole proprietorship, partnership, corporations S corporation, and limited liability company (LLC). Legal and tax considerations enter into selecting a business structure.

Sole proprietor - an individual who owns a unicorporated business by him/herself.

Partnership - a relationship whre two or more persons join together to carry on a trade or business each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

Corporation - a relationship where prospective shareholders exchange money, property, or both, for the coprpration's captial stock. Profits are taxed to the shareholders when distributed as dividends.

S corporation - a corporation, meeting certain criteria, that elects to be treated as a S corporation. Generally an S corporation is exempt from income tax; the shareholders report the S corporation's income, deductions, loss and credits on their individual tax returns.

Limited Liability Company (LLC) - an entity -- statutorily authorized in certain states-that is characterized by limited liability for debts similar to that of a corporation, management by members or managers, and pass through taxation similar to that of a partnership.

Reprinted from IRS Publication 1518.

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com

Cash vs. Accrual

Cash vs. Accrual

Often times business owners or new bookkeepers are confused about the differences of reporting on a cash basis vs. and accrual basis.

The CASH METHOD is a popular choice for small business due to its simplicity.  Think of it as actual money in and money out.  To determine gross income, add up the cash, checks, and fair market value of property and services you received during the year. Then add up all the money you spent on allowable deductible expenses that you actually paid for during your tax year.

With the ACCRUAL METHOD income is reported in the year in which it was earned even if the income may be received in a different tax year. Likewise you may deduct all expenses incurred during the tax year even if you do not pay for them during that tax year.

There are four types of taxpayers that cannot use the cash basis: (1) corporations with over $5,000,000 in gross receipts; (2) partnerships with at least one C corporation partner; (3) tax shelters; and (4) taxpayers required to keep inventory (retail, wholesale, manufacturer etc...) Exceptions (1) Farming Businesses (2) Qualified PSC's (3) Entities with gross receipts of not more than $7,000,000.

QuickBooks allows you to set a preference for your accounting method so your reports will automatically generate based on that preference. To set this preference (in QuickBooks desktop version) go to Edit>Preferences>Reports and Graphs, choose the company tab and there select either cash or accrual. Even though you may have set the preference for "Cash" there may still be times you may want to view a report on an "Accrual" basis.  Once you have the report on the screen you can easily change the report view and not change the default, by clicking Customize Report and selecting Accrual.

For more information on cash vs. accrual consult your accountant or see Publication 538 at irs.gov. 
For help with QuickBooks call me!

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com

What's New in QuickBooks 2013

This information is reprinted from http://accountants.intuit.com/accounting/quickbooks/for-clients/quickbooks-pro/

New Features Available in QuickBooks Pro 2013

Improved, Modern Navigation makes QuickBooks easier

• Get to the information faster and easier with a simplified, more intuitive navigation
• We took the best of QuickBooks design and modernized the look and feel, but all of your everyday tasks are still there. No relearning required
• Bigger fonts, taller row heights on forms and registers, and updated colors dramatically improves readability so clients can focus on task at hand
• New icon bar on the left of the screen gives easy access to open windows and most common tasks, such as viewing account balances and favorite reports
• Easier on the eye with all the same powerful tools and shortcuts still there — we didn't remove anything, just made it all easier to find and use

Ribbon layout instantly shows your options

• Save time with the new menu ribbon by getting instant access to the most commonly used functions on invoices, estimates, sales orders and other forms
• See all the actions available at a glance without searching through drop-down menus
• Actions are consistently placed and grouped so it's faster and easier to accomplish key tasks
• Easily hide the menu ribbon to stay focused on tasks
  
  
  
  
  Customer, Employee & Vendor Centers put more information at the fingertips
  
  
  

  • See more of what's important with expanded contact information fields in the Employee, Customer and Vendor Centers
  • Customize up to 8 contact fields to include more phone numbers, emails, web addresses and more
  • Include multiple notes for each contact to keep important info in one place
  • New tab functionality shows "transactions", "contacts", "to dos" and "notes" on the same page — no need to launch new windows
  
  Additional improvements you've been asking for that make managing your books easier than ever
  
  
• Reports: Add favorite, recent and memorized reports to the home page
• Print Bill: Print a bill to route for approval or file for record keeping
• Billable Time and Expense Preference: When entering time or expenses, you now have the option to control whether QuickBooks automatically bills for them. Separate controls for time and for expenses

Get apps with a few clicks

• Take advantage of apps that integrate with QuickBooks and let you do more
• Shop for apps right from QuickBooks (additional purchase may be required) — no need to visit multiple websites to learn more
• Streamlined app setup, install and free trials — it's now one stop shopping with fewer steps

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com

Outstanding Receptionist

Today I am heading to Philadelphia. I will be facilitating, "How to Become an Outstanding Receptionist" in Atlantic City, Cherry Hill, Philadelphia, and Harrisburg.  This class always packs in the attendees. So what are the qualities of an outstanding receptionist?

1. An understanding on the role and duties of the receptionist.  This includes greeting the customers, answering the phone, being prepared for an emergencies, and a variety of other tasks including but not limited to; ordering office supplies, making travel arrangements, and distributing mail.
2. An outstanding receptionist has a creates a positive first impression because s/he knows this impacts the customer's perception of the organization, therefore s/he has a professional appearance by being appropriately dressed and having a neat and organized workspace and reception area.
3. An outstanding receptionist has good communication skills. S/he understands the importance of listening and asking good questions.
4. Good telephone skills are a vital quality. The outstanding receptionist has a voice that is alert and pleasant. When answering the phone, the caller immediately knows they have dialed the correct number. The receptionist uses the caller's name and is ready to take a message.
5. Since the receptionist is juggling many roles and priorities throughout the day, s/he has excellent time management skills. 

In the class we cover all these points in depth, plus I share a strategy for dealing with angry and upset people.

--Rhonda H. Smith
Your QuickBooks Coach
www.yourquickbookscoach.com