You work hard to make sure your QuickBooks data is accurate. Make sure it’s safe, too.
Your QuickBooks company file contains some of the most sensitive information on your computer. You may have customers’ credit card numbers and employees’ Social Security numbers. An intruder who captured all that data could create tremendous problems for you and a lot of other people.
That’s probably the worst-case scenario. But other situations could also spell disaster for your business, which involves losing your company data through fraud, hacking, or simple technical failures.
We can’t overstate the vital importance of protecting your QuickBooks company file, especially your customer and payroll information. Whether someone steals it or it’s inaccessible for another reason, it’s gone. Keeping your business going after such a loss would be very difficult – maybe even impossible.
Here’s what we suggest to prevent that.
No business owner wants to believe that his or her employees could use their QuickBooks access to commit fraud. But it happens. Your company file contains credit card and checking account data that could be used for nefarious purposes. As we discussed last spring, you can restrict user access to specific areas and actions of QuickBooks.
You can limit your employees who have QuickBooks access to certain areas and activities.
To get started, open the Company menu and select Set Up Users and Passwords | Set Up Users. The User List window opens. It should have at least one entry there, for you (Admin). Click Add User and enter the employee’s name and password in the next window that opens, then click Next.
Tip: Your QuickBooks license limits you to a specified number of users. If you’re not sure how many you’re allowed, click F2 to open the Product Information page. The number of user licenses you’ve paid for appears in the upper left.
On the next page of this wizard, click the button in front of Selected Areas of QuickBooks. The following screens will let you define that employee’s access permissions in areas like Sales and Accounts Receivable, Inventory, and Payroll and Employees. When you’ve clicked through every screen and reviewed the summary displayed, click Finish. Your user will now be able to sign in and access the areas you specified.
You can—and should—take numerous other steps to keep your QuickBooks data safe. If your company is big enough to have a dedicated IT expert, he or she will handle most of this. But there’s a lot you can do on your own to prevent data loss and theft.
Keep Your Operating System and Applications Updated
Don’t ignore this dialog box.
Software companies’ occasional updates offer more than just adding new features and fixing bugs. They sometimes refresh your software to ensure greater security based on new threats. Don’t forget about those all-important antivirus and anti-malware applications, as well as QuickBooks itself.
Keep Your Networks Safe
Just as a cold virus spreads around your office, so, too, can unwanted intrusions like computer viruses. Don’t allow an electronic epidemic to get started; take steps ahead of time to prevent it:
- Discourage employees from excessive web browsing. This can be a hard rule to enforce, as some employees probably need internet access for research, timecard entry, and other work-related tasks. Create a firm policy legislating what workers can and can’t do on company-issued equipment (including tablets and smartphones) or any personal devices that use your wireless network.
- Ask employees to refrain from using public networks on work equipment. Enforce the rules vigorously, and make compliance an element of performance evaluations.
- Minimize app installations on business smartphones. Employees should ask for approval. Viruses and malware get in that way, as well as through some websites and email attachments.
- Use monitoring software. If you can’t afford to pay for “managed IT” (a la carte, third-party IT services), install an application that alerts you to problems.
Use Common Sense
You can fight data loss and theft by being cautious. Be diligent about backups, and if you create them on a local, portable device, don’t leave them in the office. Cloud-based solutions are better. Shred papers that have sensitive information on them. Log out of QuickBooks when you’re not using it or when you leave your office. Be aware of who may be around you, looking over your shoulder.
We take data security very seriously in our own office, and we strongly encourage you to do the same. Contact Chahal & Associates, Inc. at 510-222-5800 if you’re at all concerned with your own data safety, and we’ll come up with a plan together.
They’re one of the rewards you get for your conscientious accounting work: reports. Are you using them to make better business decisions?
What do you see when you log on to QuickBooks Online? Your most important business numbers represented by real-time charts. Profit and loss. Income and expenses. Sales. And all of your account balances.
This is a great way to start your workday. You know where you stand financially, and you know what areas of your company file need attention, fast.
But QuickBooks Online’s home page only tells part of the story. You also need more in-depth, customizable reports. In the short term, reports help you further determine any necessary accounting work. Long-term, they’ll provide insight to help you make smarter decisions as you plan for your company’s future.
Creating reports in QuickBooks Online is easy. Customizing them is a bit harder. And analyzing them, depending on their complexity, can be more of a challenge.
We’ll start with some of the simplest, most important ones: Accounts Receivable. Where do you stand with customer payments? Who isn’t paying on time? How much is outstanding? To find them, click Reports in the toolbar pane. Click All Reports (over to the right, near the top), and then Manage Accounts Receivable. The list of related reports will open.
QuickBooks Online displays descriptions of each A/R report and links to the Run and Customize functions in its directory.
Click the Customize button under Open Invoices. The customization options will appear on the pane to the right of the screen. You can modify:
- The Report period, Number format, and the appearance of Negative numbers
- Columns (Transaction Type, Due Date, Open Balance, etc.)
- Aging method (Current or Report Date)
- Filter (Customer, Territory, Sales rep, etc.)
- Header/footer (Show logo, Report title, Date prepared, Alignment, etc.)
QuickBooks Online comes with commonly used options already selected. Changing them helps you zero in on the precise cross-section of data you want to see.
This is a partial list of the Column options in QuickBooks Online. You can also customize in multiple other ways.
When you’ve finished making changes, click Run report to see it displayed with your own data.
If you’d like to save that report (including the modifications you just made), click Save customization in the upper right corner of the screen. In the window that opens, create a new name for the report that you’ll recognize, and enter it in the Custom report name field. Want to build a group of related custom reports? Click Add this report to a group and type its name into the New group name field. Click Add. That report will now appear in the list of reports you’ve created when you click the down arrow in the field below Add this report to a group.
Would you like to share the custom report with other QuickBooks Online users? Click the down arrow in the field under Share with, and select All or None. When you’re done here, click Save. You can click the icons in the upper right to email the report, print it, or export it to Excel or PDF format.
Reports in other categories–like Review Sales, Business Overview, and Review Expenses and Purchases–work similarly.
Note: There’s one category named Accountant Reports. If you’re very familiar with double-entry accounting, you might attempt to run and analyze these yourself. Most likely, you’ll need some help with these critical financial reports that should be created periodically. We’d be happy to assist with this.
The Reports page toolbar
You can always go to the All Reports screen and drill down to the report you want to see. QuickBooks Online provides a better, faster way to access many of them. The toolbar pictured above appears when you’re browsing through lists of reports. Click Recommended to see what QuickBooks Online deems the most important data for you to see regularly.
Once you’ve started working with reports, the ones you access most often will appear when you click Frequently Run. Those reports that you modified and saved will be listed under My Custom Reports. Management Reports are geared toward company managers, of course.
We encourage you to familiarize yourself with QuickBooks Online’s reports and modification options. And as we said, we’re on hand to run and analyze the site’s more complex report options on a regular basis, or when you have a specific need, like when you apply for financing. Together, we can get the information you need to complete your daily work and do more long-term planning.
One call to 510-222-5800 is all it takes to get started, so don’t wait any longer to get Chahal & Associates, Inc. and QuickBooks working for you.
We’ll be ringing in the New Year soon. Will you have wrapped up last years’ finances by then?
There’s something very satisfying about turning our calendars to January. It always feels like a fresh start. We resolve to develop new, better ways of using our work and leisure time. We reflect on what we accomplished in the last 12 months, and we look forward to achieving even more in the next 12.
But sometimes we have a nagging feeling that we forgot something. And it often has to do with our finances, both personal and professional.
You can take steps now to make New Year’s Day less worrisome. Doing some extra work in QuickBooks during December will ensure that you’ll start the new year ready to move ahead, rather than scrambling to see what you missed on January 2.
Where to start? Depending on how conscientiously you entered transactions and ran reports, you might need to set some extra time aside in the midst of your other year-end and holiday-related commitments.
For example, did you instruct QuickBooks to “close your books” at the end of the year?
QuickBooks will automatically make year-end adjustments if you entered December 31 as a closing date in Preferences. However, it’s not required, and there are both advantages and disadvantages to doing so. We can help you decide if this is the best decision for your company.
Figure 1: If you set a closing date of December 31 in QuickBooks’ Preferences, you need to prepare your company file for this deadline in advance. We can help you get ready.
Prior to this, though, there’s another important task you should complete before the end of the year. It’s common sense, but not everyone thinks of it during the December rush: Make sure you’ve entered all transactions and payments that should be included in your QuickBooks file for 2017.
If anyone else on your staff works in QuickBooks, make sure they know that you’re trying to wrap up the year. If they’re holding anything back because of questions and comments, now’s the time to confer with you.
Taxes and Accounts
You may have already been working with us on tax planning for the 2017 tax year. If you haven’t, and you haven’t been doing so on your own, you need to look at your incoming and outgoing funds for the year before it’s over. Do you need to hold until next year some income and/or expenses that haven’t been recorded until next year? This kind of question really needs to be resolved now.
Figure 2: Time is short, but we may be able to help you make some decisions about carrying some 2017 income and/or expenses over to the next year if it will help reduce your tax obligation.
Talk to us about your tax situation if you think this may be necessary. We can’t prepare your taxes yet, of course, but we can create some reports and advise you on any situations where you might want to put off – or accelerate – some actions. Is your income running high and your offsetting expenses low? If so, this may be a good time to make a fairly major purchase you’ve been considering.
Odds and Ends
How do you back up your QuickBooks company file? On a local drive or in the cloud? How often do you do this? Archiving your data is critical. Think about what would happen if you lost your customer records or a month’s worth of transactions or multiple payments. This is an area where we can provide guidance. Is there a better, safer way to ensure data security? Are there special backup activities you should do at year’s end?
Some companies wait until January to do a physical inventory count. Rather than being surprised in January, you may want to consider doing this now if it’s feasible.
And when you think you’ve entered everything but payments or transactions that may come inat the last minute (unless you’re going to defer these until the next year), all accounts should be reconciled. QuickBooks makes it easy to do this regularly.
Figure 3: Before the end of December, you should do a final reconciliation of all accounts for 2017.
It will be painful to open QuickBooks on January 2 if you don’t feel like you paid extra attention to your finances in December. We can help you ring in the New Year on a more confident note. Give us a call at 510-222-5800 to get started today!
There are more pleasant accounting tasks than paying bills, but QuickBooks Online organizes and simplifies this critical chore.
How does your company keep track of its bills now? If you’re like a lot of small businesses, you’re still dealing with a lot of paper. You may have a paper or electronic calendar where you enter all of the due dates as bills come in. When you see one approaching, you either take out your checkbook or schedule an online payment. Then you store all of your paid paper bills in file folders in case you have to look back at them.
It’s probably pretty clear to you that this isn’t the best system. You occasionally miss payments because a bill was lost in transit or for some other reason didn’t make its way to you. Or you were out of the office for a few days and didn’t look back on deadlines you missed.
QuickBooks Online can help keep bill-payment running smoothly and your relationships with vendors on the up-and-up.
Before you can start paying bills, you have to enter them into QuickBooks Online. This will entail a bit of extra work the first time you deal with a particular vendor, but there are numerous benefits to handling your accounts payable in this fashion, like:
- Speed. Once you’ve created a framework (template) for a bill, it will take minimal time to pay it in the future.
- Documentation. All of your bill payments will be recorded in QuickBooks Online, so you won’t have to hunt through checkbook registers or file folders to see if a bill was paid.
- Timeliness. QuickBooks Online will always remind you when a bill must be paid (if you’ve set it up correctly).
To enter a bill, click the plus (+) sign at the top of the screen and click on Vendors and then Bill. This screen opens:
You’ll enter information about each bill on a screen like this. There are fields not pictured here that you’ll sometimes have to complete. So let’s start a conversation about the whole process.
Looks pretty simple, doesn’t it? It is – if you have a simple bill like the one you receive for gas and electric. You select the vendor by clicking on the arrow next to the blank field in the upper left and choosing from the list that opens. The Mailing Address and Terms should fill in automatically if you’ve done all of your initial QuickBooks Online setup. If not, you can add and edit this information.
Bill date refers to the date of the bill itself, not the day payment is due to the vendor. That goes in the Due date field. Select your Account from the list that opens when you click in that field, and enter a Description and Amount. If that’s all that’s required for that bill, you can save it and proceed to the next. It’s now recorded as a bill that needs to be paid.
Some of your bills are just one-offs,but others arrive on a regular basis. So QuickBooks Online has tools that will minimize the time required to process them after you’ve entered the basic information once. After you’ve completed a bill, click Make recurring at the bottom of the page to see this screen:
QuickBooks Online lets you create templates for bills to use in future payments.
This screen is self-explanatory. You simply tell QuickBooks Online how much notice you want before a bill’s due date so you can process the payment. Take care with this screen to avoid paying bills too early, which affects your cash flow unnecessarily, or too late.
You have three options when you’re creating a Recurring Bill template. You’ll choose one from the list that opens when you click the arrow in the Type field:
- Scheduled. This is best used when the details of a transaction don’t change, like rent or a loan payment. You don’t have to do anything for the payment to be dispatched; it’s done automatically for you at the interval you set. You can, however, ask to be notified every time this occurs.
- Reminder. You could use this for periodic payments that will require editing before they’re sent. For example, you’ll probably need to change the amount on your utility bills every month. QuickBooks Online will place a reminder in your Activities list on the home page.
- Unscheduled. If you have bills that contain a great deal of detail but aren’t due on a set schedule, you can save the template and call it up when you need it by clicking the gear icon in the upper right and selecting Recurring Transactions.
When you’re ready to learn more about making the most of your QuickBooks, give us a call today at Chahal & Associates. Call us today 510-222-5800
Even if you’ve been using QuickBooks Online for a long time, it’s good to step back and evaluate your actions.
“Best practices” aren’t enforceable rules. They’re simply guidelines businesses commonly follow in one area or another. If you’re in retail, for example, one best practice might be to always ask customers checking out if they found everything they were looking for. This serves two purposes: It conveys a feeling of concern for the customer’s shopping experience, and it may also lead to increased sales.
QuickBooks Online has many best practices, some of which may serve multiple purposes, including these:
- They keep your company data safe and clean.
- They provide insight on your financial status.
- They save time.
- They can lead you to better relationships with customers and vendors.
Are any or all the following common practices for your business?
Reconcile accounts regularly.
One of QuickBooks Online’s most useful features is its ability to connect to your financial institution’s websites and download cleared transactions. QuickBooks Online also offers tools to help you keep your accounts reconciled online, like you used to do every month when your paper statement came. Reconciling accounts can help you uncover errors. It gives you a truer picture of your cash flow, and it improves the accuracy and timeliness of some reports.
It’s not a particularly pleasant process, but you should be reconciling your accounts regularly in QuickBooks Online. We can help.
Clean up your lists.
Some lists in QuickBooks Online aren’t overly long. You don’t have to worry about, for example, Payment Methods, Terms, or Classes. Your lists of customers and vendors, products, and services, on the other hand, can grow unwieldy over the years. This means it can take more time than it should to scroll through lists when you’re using those entities in transactions. It also puts unnecessary stress on your company file. If you can’t delete any, at least make them inactive.
Never leave QuickBooks Online open when you leave your work area.
This goes for everyone, even people who work alone and don’t access their company files away from their work areas. The obvious reason is to keep someone else from getting in and authorizing payments, for example, or otherwise compromising your financial information. It also protects the integrity of your data file in case your internet connection suffers some kind of outage.
Keep track of 1099 vendors.
Whether your company uses 10 vendors or a hundred or more, you may have to supply at least some of them with an IRS Form 1099 at about the same time you’re preparing W-2s for employees. Your 1099-related tasks will be much easier if those individuals and/or companies are earmarked. If you think vendors might need 1099s when you create their records in QuickBooks Online, click in the box to the left of Track payments for 1099 in the lower right corner. Not sure? Ask us.
Classify everything with care.
Every time you have to create a record or transaction where categories are involved (i.e., Classes, Customers and Vendors, Territories), check and double-check that you’ve assigned them the correct classification. Errors here can result not only in problems with daily workflow, but your reports will not be accurate. A related best practice: Create a meaningful group of Classes, and use them faithfully. They’ll help you make better business decisions.
To create your list of Classes, click the gear icon in the upper right and select All Lists | Classes | New.
View reports on a regular basis.
There are some advanced financial reports in QuickBooks Online that we should be creating for you on a regular basis, either monthly or quarterly. These include Profit and Loss, Balance Sheet, and Statement of Cash Flows. The mechanics of creating them aren’t difficult, but analyzing them is. You should be running reports on your own at frequencies that you think would be helpful, like A/R Aging Detail, Unpaid Bills, and Sales by Class Detail.
If you’ve been using QuickBooks Online for a while, you could probably come up with your own list of best practices. If you’re new to the site, consider scheduling some time with us to go over more of them. Develop good habits from the start, and there won’t be nearly as much need for troubleshooting down the road.
Call Chahal & Associates, Inc. at 510-222-5800 when you’re ready to get started making the most of your QuickBooks.
Not finding quite everything you need in QuickBooks Online? Our Bay Area QuickBooks professionals can help. Give us a call at 510-222-5800.
Here are some handy add-on apps available to get you started.
QuickBooks Online may work for you just fine as is. After all, it was designed to meet the needs of the millions of small businesses that want to manage and track their income and expenses, create records and transactions, and run reports to gauge their financial health. QuickBooks Online was also designed to grow along with your business. But there’s no need for Intuit to add internal features to do so. In fact, that would make it too expensive and unwieldy for many companies.
Instead, Intuit has partnered with other small business websites to provides add-ons–applications that extend the usefulness of QuickBooks Online in one or more areas, like accounts receivable and payable, inventory, and expense-tracking. They integrate easily to share data and do the extra work you need. Here are some of them to consider.
You can certainly enter and pay bills using QuickBooks Online. And you can send invoices to customers and receive payments. But adding a connection to Bill.com gives you more advanced options for accounts receivable and payable. Simply send your bills to Bill.com by scanning, emailing, faxing, or taking a picture with your smartphone. The site’s automation tools turn them into digital records and route them through your specified approvers. Once approved, they’re paid electronically or by paper check. Invoices are just as easy to process; customers can pay by using PayPal, credit card, or ACH. Bill.com’s mobile app makes it possible to keep up with invoices and bills while you’re out of the office.
Are your employees still paper-clipping receipts to handwritten expense reports? This method is unnecessarily time-consuming – and often inaccurate. Expensify solves both problems. Your staff can take photos of receipts with their smartphones. Expensify then converts the expense information into coded digital records and submits them for approval based on your company’s policies. Credit card purchases can be automatically imported, too. All data is synchronized with QuickBooks Online in real-time and coded to reflect your preference of QBO’s expense accounts, customers/jobs, etc. Once you’ve approved a report, you can have the money deposited in the employee’s bank account the next day.
TSheets Time Tracking
TSheets employee scheduling software automates tasks that QuickBooks Online doesn’t do: scheduling and remote time-tracking for your hourly employees. Your staff no longer has to fill in paper timesheets. Instead, they can use their smartphones to track their hours and GPS location points. And while Excel is certainly better for creating schedules than paper, TSheets takes over that task, too. After you’ve approved timesheets, that information is sent over to QuickBooks, ready for use in your payroll processing.
Your employees can easily “punch” in and out using their smartphones. TSheets also uses GPS technology so that your staff members’ locations are always known to you.
QuickBooks Online performs some basic inventory management tasks. You can create records for items and use them in transactions, and keep track of the number of items in stock so you know when to reorder (or have a sale). SOS Inventory goes well beyond those capabilities. You can create sales orders, track cost history and serial numbers, and document work-in-progress (WIP). SOS Inventory supports multiple locations and the entire pick/pack/ship process.
You can create thorough customer records in QuickBooks Online and document some of your interaction. But it doesn’t facilitate true Customer Relationship Management (CRM) nor project management. Insightly CRM does both. It lets you build exceptionally thorough customer profiles so that you can view social streams, email history, and any events, opportunities, or events related to them. Its project management features include the ability to track by pipelines or milestones, define contact roles and custom fields, and generate advanced project reporting.
QuickBooks Online Integration Key
All of these apps can work in standalone settings, but their integration with QuickBooks Online and their mobile capabilities create powerful partnerships that help you serve both your customers and your employees in ways that QuickBooks Online alone can’t.
We’re not trying to sell you applications here. Our concern is that you’re getting as much out of QuickBooks itself as you can. We can steer you toward add-on solutions if that seems necessary, but we’re always happy to work with you on getting to know QuickBooks Online better and matching its capabilities to your company’s needs. Call Chahal & Associates, Inc., a Bay Area accounting firm, at 510-222-5800 when you’re ready to get started. We’re prepared to help you make the most of your QuickBooks software. Or, request a free consultation online.
Launching a new business takes hard work — and money. Costs for market surveys, travel to line up potential distributors and suppliers, advertising, hiring employees, training, and other expenses incurred before a business is officially launched can add up to a substantial amount.
The tax law places certain limitations on tax deductions for start-up expenses.
- No deduction is available until the business becomes active.
- Up to $5,000 of accumulated start-up expenses may be deducted in the tax year in which the active business begins. This $5,000 limit is reduced (but not below zero) by the excess of total start-up costs over $50,000.
- Any remaining start-up expenses may be deducted ratably over the 180-month period beginning with the month in which the active business begins.
Example. Gina spent $20,000 on start-up costs before her new business began on July 1, 2015. In 2015, she may deduct $5,000 and the portion of the remaining $15,000 allocable to July through December of 2015 ($15,000/180 × 6 = $500), a total of $5,500. The remaining $14,500 may be deducted ratably over the remaining 174 months.
Instead of deducting start-up costs, a business may elect to capitalize them (treat them as an asset on the balance sheet). Deductions for “organization expenses” — such as legal and accounting fees for services related to forming a corporation or partnership — are subject to similar rules.
If you are tired of overpaying taxes, simply call 510-222-5800 and ask for Navjeet. Our initial consultation is free. Lowering your taxes legally is our expertise.
Chahal & Associates services small business owners throughout the Bay area. We have convenient offices in Emeryville, San Rafael and Pinole. Chahal & Associates provides additional expertise in QuickBooks Accounting, International Taxation, Restaurant Accounting and Retail Accounting.
If you run a small business, you already have a full plate. The last thing you need is for the IRS to question any of your business expense deductions. But it could happen. And that’s why having records that prove your expenses is so important. Even deductions for routine business expenses could be disallowed if you don’t have appropriate records.
What Records Are Required?
Except in a few instances, the tax law does not require any special kind of records. You’re free to have a recordkeeping system that is suited to your business, as long as it clearly shows your expenses. In addition to books that allow you to track and summarize your business transactions, you should keep supporting documents, such as:
- Canceled checks
- Cash register receipts
- Credit card sales slips
- Account statements
The rules are stricter for travel, entertainment, and transportation expenses. You should retain hotel bills or other documentary evidence (e.g., receipts, canceled checks) for each lodging expense and for any other expense of $75 or more. In addition, you should maintain a diary, log, or account book with the information described below.
Travel. Your records should show the cost of each separate expense for travel, lodging, and meals. For each trip, record your destination, the dates you left and returned, and the number of days spent on business. Also record the business purpose for the expense or the business benefit you gained or expected to gain. Incidental expenses, such as taxi fares, may be totaled in reasonable categories.
Entertainment. Record the date the entertainment took place and the amount of each separate expense, along with the name and address or location of the place of entertainment. Note the business purpose for the expense or the business benefit you gained or expected to gain and the nature of any business discussion or activity that took place. Also list the identities and occupations of the individuals you were entertaining or other information that indicates their business relationship to you.
If the entertainment was directly before or after a business discussion, be sure to indicate the date, place, nature, and duration of the discussion and the individuals who took part in both the discussion and the entertainment activity. For a business meal, you must prove that either you or your employee was present.
Transportation. As with travel and entertainment, you should record the amount and date of each separate expense. Note your business destination and the business purpose for the expense. If you are deducting actual car expenses, you’ll need to record the cost of the car and the date you started using it for business (for depreciation purposes). If you drive the car for both business and personal purposes or claim the standard mileage rate, keep records of the mileage for each business use and the total miles driven during the year.
Don’t Mix Business and Personal Expenses
Things can get tangled if you intermingle business and personal expenses. You can avoid headaches by having a separate business bank account and credit card.
If you are tired of overpaying taxes and would like to be more aggressive lowering your taxes but stay within the legal limits, call 510-222-5800 and ask for Navjeet. Our initial consultation for small business owners is free.
Chahal & Associates is a California Tax and Accounting firm that focuses on lowering your taxes legally. We have three convenient locations to service the broader Bay area and are the fastest growing firm locally. Our offices are located in Marin County – San Rafael, Emeryville – Alameda County, and Pinole – Contra Costa County.
While we work with all types of businesses, Chahal & Associates also has specialty services like International Taxation, Expatriate Tax, Restaurant Accounting, Retail Accounting, QuickBooks Accounting and Auto Repair Accounting.
QuickBooks Certified ProAdvisors are accountants that have gone through a rigorous training process developed by Intuit, the company that developed QuickBooks. And at the end of this training, a series of tests must be passed in order to become certified.
Why Hire a Certified ProAdvisor?
A Certified ProAdvisor can provide accounting and tax assistance well beyond a technical staff person at Intuit. Often, they have extensive experience that can save you precious time and money rather than trying to figure out something yourself.
Second, a Certified ProAdvisor often knows what is currently available on the market today to solve your day-to-day challenges either with a QuickBooks product or another vendor that integrates with QuickBooks software. Surprisingly, there are many apps and software vendors that make QuickBooks operate more effectively and save you time.
And third, a Certified ProAdvisor will attend conferences to learn what changes are around the corner. For example, the cloud accounting changes to QuickBooks are rapidly changing so staying abreast of these changes will be key to better serving your business needs.
If you are searching for a QuickBooks Certified ProAdvisor, call 510-222-5800 and ask for Navjeet.
For many businesses, profits vary from year to year. However, with proper planning, even a bad year can be helpful from a tax perspective. Where business deductions exceed gross income, a taxpayer may have a net operating loss (NOL) that can be used to offset income in another tax year, potentially generating a refund of previously paid taxes.
Who May Use an NOL?
NOLs are available to individual business owners, corporations, estates, and trusts. Partnerships and S corporations do not take NOL deductions, though their partners and shareholders may use “passed through” losses on their own returns.
How Is an NOL Applied?
The general rule is that a taxpayer may carry an NOL back two years and forward 20 years, though certain limited exceptions may apply. For example, an individual with an NOL that was caused by a casualty, theft, or disaster may use a three-year carryback period.
In general, the taxpayer will carry back an NOL to the earliest year it can be used and then carry it forward, year by year, until it is used up. The taxpayer may also elect to forego the two-year carryback and carry the loss forward for the 20-year period. However, the general preference is to use an NOL sooner rather than later because a dollar of tax saved today is generally worth more than a dollar saved in the future.
How Is an NOL Calculated?
Calculations of NOLs can be complicated. For example, a noncorporate taxpayer’s NOL is calculated without regard to any personal exemptions or NOLs from other years, and certain deductions for capital losses and nonbusiness items are limited.
If you are tired of overpaying taxes, call 510-222-5800 and ask for Navjeet. Lowering your taxes legally is what we do best.