ProAdvisor Tips ~~ Preventing Prior Period Changes ~~

A common issue with QuickBooks is how easily users can (intentionally or unintentionally) enter or edit transactions in prior periods. To prevent unauthorized prior-period entries or changes, set up a unique username and password for each user and set each user’s preferences to prohibit him or her from bypassing the closing date. Thereafter, by establishing a password-protected closing date and moving it forward each month as review and adjustments are completed, you can lock down the prior-period data as the year progresses, as shown in the screenshot at the bottom of the previous page. To access the tool, go to the Company menu, Set Closing Date.

Reprinted from the December 2011 Issue of the Journal of Accountancy

What's New In QuickBooks 2012?

Are you still using an older version of QuickBooks?   It may be time for an upgrade!   There are some really cool new feature and improvements to the 2012 version.   Below are a few of the most exciting changes:

NEW! Calendar View
Staying on top of invoices, billing and other important tasks just got easier! The new integrated Calendar feature allows your clients to quickly view invoice and billing dates and other scheduled tasks. Plus, the improved To Do List now captures more relevant information and displays it, making it easier to see and get done.

IMPROVED! Excel Integration Refresh

Save time when exporting QuickBooks to Excel. Your clients can now save their worksheet formatting when they export, then when they refresh the report for a new time period, simply update the saved file and their formats will be automatically applied to each new report2—it’s that easy!

NEW! Contributed Reports

Save time and increase efficiency by leveraging report templates, created by other QuickBooks users. You can also create report templates for your clients to use. Your clients can easily find the reports they need and filter them by industry type, user ratings and report popularity. They can populate the report with their data in one click.

NEW! Document Center

Your clients can improve their organization by attaching and storing contacts, proposals, receipts and other important documents in the QuickBooks Document Center. Simply drag and drop the documents they need, when they need them to their hard drive. Just another way QuickBooks 2012 is helping make tax time a little easier.

IMPROVED! Memorized Transactions

Increase efficiency by reviewing individual transactions (billing, invoices, estimates, etc.) before they are processed, and have the freedom to choose which transaction to process and which to postpone—all with a simple click of the mouse.

NEW! Batched Time Sheets

Increase efficiency by creating time sheets for multiple employees or vendors in one batch. It’s simple, just create the time sheet and select the employees who worked the same hours and click “create.” No additional re-entry needed.

NEW! Lead Center

Track and follow up on important sales leads in the new QuickBooks Lead Center. When your client’s leads become customers, that customer’s contact information can be transferred into the Customer Center with the simple click of the mouse.

ProAdvisor Tips ~~Memorized Transactions~~

Memorize Transactions

For every company, a significant number of transactions recur regularly, and QuickBooks accommodates this by enabling you to memorize recurring transactions. For example, suppose a company makes the same monthly rent payment, bills clients for recurring monthly services or records the same monthly depreciation entries. In these cases, QuickBooks can memorize the transactions and automatically enter them for you at regularly scheduled intervals. This feature can help save time, reduce mistakes and increase accuracy. You also can use this feature to memorize complex journal-entry templates, such as detailed allocations, and enter the actual amounts later. To access the tool, type Ctrl + M.

Memorize Transaction tip. Memorize Transaction will generate electronic payments or paper checks but it does not automatically send or print them. Once a check is created in QuickBooks, you can send or print the check using the File menu’s Send Documents or Print Documents menu options.

The IRS Adds Another Reporting Requirement: Form 1099-K

 

New for 2011, the government has added an information return in an effort to capture more unreported income by businesses.

Form 1099-K, “Merchant Card and Third-Party Network Payments,” is required to be filed by banks and online sellers, also referred to as “Payment Settlement Entities (PSEs).” Merchant cards include, but are not limited to, Visa and MasterCard. Third-party networks include, but are not limited to, PayPal and Google Checkout. The form must be sent to the IRS and payee.

Institutions must report the gross amount of credit and debit card payments received by merchants only if 1) the aggregate amount of transactions exceeds $20,000, and 2) the aggregate number of transactions exceed 200.

Here are some additional details:

• The gross amount without regard to adjustments for credits, cash equivalents, discounts, fees and refunded amounts is reported in Box 1.
• The receipts are broken down and reported on a monthly basis.
• To avoid double counting the income, the payments should not also be included on Form 1099-MISC.
• The following tax forms have been revised to show Form 1099-K payments received: Schedules C, E, F (Form 1040) and Forms 1120, 1120S, 1065. However, for Tax Year 2011 only because of transitional issues, the IRS has changed these forms so that taxpayers are instructed to enter zero on the line for income from “merchant card and third party payments” (Form 1099-K). Instead, the income is to be included on the next line, “gross receipts or sales not entered on the previous line.”

For more information, contact the IRS.


Reprinted from Intuit's "From the Experts" article dated 12/7/2011

Happy Holidays to You and Yours!

Retirement Plan Options for Small Business

Employer sponsored retirement plans provide tremendous value to business owners offering a convenient method to save for retirement and are an important part of a comprehensive benefits package to attract quality employees all while providing important tax benefits.   There are several retirement plan options available to suit all businesses from the single-person sole-proprietor or the larger small business owner.   The chart below outlines the key feature of some of the more popular small business plans:

SEP-IRA SIMPLE-IRA Self-Employed 401(k) Eligibility Any self-employed individual or business owner with employees Businesses with 100 or fewer eligible employees who do not currently maintain any other retirement plan Any self-employed individual or business owner with no employees other than a spouse. Key Advantage Easy to set up and maintain Salary reduction plan with less administration Generous contribution limits Funding Responsibility Employer contributions only Funded by employee salary reduction contributions and employer contributions Funded by employee salary reduction contributions and employer contributions Annual Contribution per Participant Up to 25% of compensation. Employee: Up to 100% of compensation, Employer: Either match employee contributions dollar for dollar up to 3% of compensation Or contribute 2% of each eligible employee's compensation Employee: Up to 100% of compensation.Employees age 50 or older can make additional catch-up contributions . Employer: Up to 25% of compensation,       Access to Assets Withdrawals at any time. Withdrawals are subject to current federal income taxes and a possible 10% penalty (if the participant is under age 59½) Withdrawals at any time. If employee is under age 59½, withdrawals generally may be subject to a 25% penalty if taken within the first two years of beginning participation and a possible 10% penalty if taken after that time period. Cannot take withdrawals from plan until a "trigger event" occurs. Vesting of Contributions Immediate Employee and employer contributions vested 100% immediately Employee and employer contributions vested 100% immediately Administrative Responsibilities No employer tax filings No employer tax filings Annual Form 5500 filing

ProAdvisor Tips ~~Best QuickBooks Shortcuts~~

Keyboard shortcuts are those little keystroke combinations that make daily life in front of your computer screen just a bit easier.   Here are some of my favorite QuickBooks shortcuts:

Chart of Account List Display              Ctrl + A
Open the Find Window                       Ctrl + F
History of A/R or A/P Trans                Ctrl + H
Transaction Journal Display                Ctrl + Y 
Delete Line from Detail Area               Ctrl + Del
Insert Line in Detail Area                    Ctrl + Ins
Increase Check Number or Date          + (plus key)
Decrease Check Number or Date         - (minus key) 
Next Field                                         Tab
Previus Field                                     Shift + Tab
Close Active Window                          Esc

Try these shortcuts to reduce your daily keystrokes and make the most of your time.  
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