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.

How to get the best car leases

To get a good leasing deal, focus on the following three figures:

· Capitalized cost (price). In some cases, the price is adjusted for extras, such as extended service contracts and registration fees.
· Residual value (estimated cost at lease end). Negotiate to minimize the spread, i.e., the difference, between the capitalized cost and the residual value. This difference is the amount of depreciation your company will be financing through the lease.
· Interest factor. If you want to know the true annual percentage rate, ask for the “leasing factor,” then multiply it by 24.
Compare the following among leases:
· Excess mileage charges due when you return the car. The lease specifies the number of miles included and the fee for extra miles.
· Excess-wear charges due when you return the car. In the lease agreement are the standards by which excess wear will be determined (body damage, worn tires, etc.).
· Early termination fees for ending a lease early. The earlier that you end it, the higher the fee.

For more: Visit: www.federalreserve.gov, search “leasing,” click on “FEB: Vehicle Leasing: Quick Consumer Guide.”

-Republished from the AIPB newsletter, "the General Ledger" Volume 7, Issue 43




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Business Trips that Mix Business & Pleasure

Although the 21st century has provided us with a multitude of lightning fast communication options the “face to face” meeting continues to remain a favored method to conduct business. The internet, cell phones, teleconferencing and the like are certainly important and useful in their own right, they have not replaced the business trip. In addition, many taxpayers are beginning to plan trips that combine elements of both business and pleasure. Business trips, conventions, and continuing education seminars in exotic locations can provide an interesting and enjoyable vacation style opportunity and at the same time generate legitimate deductions. Although the basic rules are relatively simple, there are a few rules that you should keep in mind when planning any business trip.


Business Travel - The Rules
Taxpayers who travel away from their tax home on business are permitted to deduct travel expenses, including fares, meals, lodging, and incidental expenses, if they are not otherwise lavish or extravagant. A business trip is "away from home" if it takes enough time that the taxpayer may be reasonably expected to need sleep or rest. A taxpayer's tax home is his regular or principal place of business, or his regular abode if he has no regular or principal place of business. You are not prohibited from enjoying non-business or personal activities while on a business trip, but the primary reason for the trip must be related to your trade or business.


Foreign Travel
Foreign travel expenses are subject to some limitations that do not apply if the business trip is within the United States. Some of an individual's foreign travel expenses may not be deductible if he or she takes part in substantial non-business activity during the trip. Taxpayers who travel outside the U.S. for longer than one week or spend less than 75 percent of their time on business are subject to allocation rules, which operate to partially disallow their expenses, unless they had no control over the trip arrangements or the vacation portion was not a major consideration of making the trip. The general rule is to allocate expenses, including meals and lodging, between business and non-business on a day-to-day basis. Each day is either entirely for business, or it is considered to be a non-business day. A day counts as entirely for business if the taxpayer's principal activity on such day was the pursuit of a trade or business. In addition, a day is counted as a business day if any of the following factors are present:
¨ The individual was traveling to or from an overseas destination in pursuit of a trade or business.
¨ The individual's presence outside the U.S. on that day was required at a particular place for a specific and bona fide business purpose.
¨ The individual was prevented on that day from engaging in the conduct of his or her principal business activity due to circumstances beyond his control.
¨ The day was a Saturday, Sunday, legal holiday or other reasonably necessary stand-by day, which intervened during the course of the taxpayer's trade or business.


Staying Over
Due to airline pricing policies, it is sometimes economical for a business traveler to stay over Saturday night although business concluded on Friday. The additional lodging expense may be more than offset by the lower airfare as a result of the Friday and/or Saturday night stay-over. In such situations, the additional meals and lodging expenses for the Friday/Saturday mini-vacation may be written off entirely as part of the deductible as ordinary and necessary expenses of the trip.
If, on a business trip during the week, a certain day is devoted primarily to pleasure, that day's expenses are not deductible. Although this may be a nondeductible expense that the business traveler is willing to pay, take care not to devote over half of the time you spend away from home on pleasure. In such a case, none of the transportation expenses involved in getting to and from the location are deductible. On the other hand, if more than half of the trip is devoted to business, all of the transportation expenses may be written off as a business expense.

On Not Becoming a Statistic...

A Forbes article published this week offers some stark statistics for the Small Business Owner. According to data provided by the Bureau of Labor Statistics, only 44% of small businesses will survive into their 4th year. Depending on what kind of gambler you are, those less than 50/50 odds can be a pretty harsh possibility for a venture you've poured your hard work, dreams and money into - betting it would be a winner. But rather than be discouraged, you can pose the question, "What can I do to make sure my business is part of that 44% who are thriving?"

The list to consider is as long as the many hats that your wearing...

• Business Planning
• Sales & Marketing
• Finance & Accounting
• Product, Inventory Management
• Labor Management
• and everything else

The key is knowing when and where things are going right and when and where things are going wrong. A few questions to consider:

• Who is buying?
• How quickly they are paying?
• What's your spending?
• What are you spending on?
• How much money you have tied up in inventory?
• What's your gross margin? Return on Sales?

Maintaining accurate and up to date financial records, and understanding what they are telling you, is key to building a strong, healthy business. The Income Statement, Balance Sheet and Statement of Cash Flow are the tools that will provide you with the answers you need to make informed decisions about your company.

Arm yourself with the right tools and you will put the odds of success in your favor!

How long do I have to keep this stuff? Record Retention Rules

You've finally finished switching your files over. The file cabinets are happy to no longer be overstuffed with an entire year and your happy to have room to move around in them while 2007 is still young. 2006 is packed away in boxes, probably sitting on the floor of your office where they will stay for the next few months because you know you'll be referring back to them a million times. And after that its off to the storage room, closet, warehouse, where ever you can find the room to store them. This is when the question always comes up, "How long do I have to keep this stuff anyway?"

Here is a list of some of the more common items cluttering up your office and how long to hang onto them:

~ 3 years - Most general correspondence, employment applications, petty cash vouchers

~ 7 years - A/P and A/R ledgers & schedules, invoices (from vendors and to customers) Purchase Orders, Sales Records, Payroll Records, Bank Statements.

~ Indefinity - Accountants audit reports, financial statements, general ledger, contracts still in force, deeds, mortgages & bills of sale, tax returns, minute books.

For a complete list of record retention rules click here and download our newsletter from the Helpful Tools & Tips section.