Tips to Expedite Your QuickBooks Accounting TasksPosted on February 28th, 2019
QuickBooks is a valuable tool for businesses, allowing them to accept payments from customers and vendors, pay their own bills, and distribute payroll to employees.
Small and medium sized businesses have been using QuickBooks for nearly twenty years, and the software is designed to be accessible for beginners and pros alike. However, there are still tips and tricks that can improve your productivity.
Effectively Manage Reports
In order to get the most out of QuickBooks, it’s useful to utilize the tools available to organize all of your data. Under the Reports tab you’ll find several features that streamline the production of reports. Features like Process Multiple Reports can merge many reports together so they can all be printed at once, while collating different reports in a Memorized Report List can expedite their distribution to the various recipients of your choice.
Export Your Work to Excel
For times when you need to plan for, or track, potential scenarios based on current data, exporting your reports to Microsoft Excel will allow you a little more creativity. For this to work, MS Office will need to be up to date so that QuickBooks can access Excel.
As with most Windows-based programs, right-clicking will open up a small shortcut menu in registers, lists, forms, and list windows. Shortcut menus can allow you access to various common tasks, such as deleting work,), or running a QuickReport on a transaction.
Other Interface Tips
Here are some more quick QuickBooks tips that can improve navigation and boost productivity:
• F1, as in most programs, will run a Help program that will provide tips relevant to your current work.
• Pressing the Home button will return you to the beginning of the field, while the End key provides the opposite result.
• Double-clicking a list box entry will prompt you to select a command button of your choice.
• Typing the first letter of an entry will move your cursor directly to that entry.
While these tips are generally beneficial for those business owners who are looking to implement QuickBooks for their regular accounting tasks, the assistance of a professional helps to bring out the full potential of this software. Contact us today to learn more about what QuickBooks can do for you!
Top Budgeting Tips for Small BusinessPosted on November 28th, 2018
Small business owners tend to manage both personal and professional finances.
When starting up a small business, it is sometimes necessary to introduce new financing to your venture to enable growth while generating enough cash flow to maintain ongoing financial stability.
To keep from joining those businesses that fail in the first five years, it is necessary to hone your budgeting skills, maximize liquidity, and stay on track.
Categorize Your Expenses into Departments – Categorizing your expenses is the first step toward tracking and reporting finances so that you can get a good understanding of your business’ financial status. Some categories might be marketing, IT, labor, and overhead.
Round Up not Down – Make a practice of rounding up when budgeting for your small business. This allows you to simplify accounting with whole numbers and creates a small cushion that can be reconciled at the end of each quarter and funneled back into your business.
Scrutinize Every Business Purchase – Small business owners tend to closely watch large purchases, but fail to analyze the small purchases. Overhead costs and petty cash expenditures add up quickly, so be sure to keep an eye on them.
Update Your Budget Monthly – The customer base, expenses, and cash flow of any business is typically ever-changing. Make sure to update you’re A/R and A/P categories, and adjust your projections accordingly.
Incentivize Your Employees – Be sure to reward excellent employee performance. When someone goes above and beyond, resulting in the further success of your business, acknowledgment or celebration can go a long way in showing your appreciation. Specify a specific dollar amount for this event so you are less likely to overspend when that time comes.
Extra Fees and Late Charges – Be mindful of the costs of paying bills late. Some vendors even add additional charges for delinquent payment. If there comes a time that you have to decide which bills to pay first, this information is handy and can help you plan your accounts payable calendar.
Compare Necessary and Frivolous Expenses – Payroll, taxes, utilities, essential stock, rent, and mortgage payments are considered your necessary expenses and should be compared to additional expenditures. Be frugal when considering paying for anything that isn’t vital to your business – and compare prices make sure you’re getting the best rate.
Above all use common sense – and discipline. The future of your business depends on it.
Tax Tips for Small Business OwnersPosted on August 28th, 2018
Every year, investigative tax notices are mailed to small business owners. While these are not always official audits, they raise a red flag, and proprietors should know how to prevent and address these inquiries in turn.
This list addresses the best tax practices for small businesses to keep them abreast of tax changes and trends, and away from IRS scrutiny.
List of top 15 Best Tax Practice Tips for Entrepreneurs
1. Maintain thorough and separate records of employees and contractors.
2. If you set up any location based business, even temporarily, keep records of all expenditures and educate yourself on the local tax laws.
3. Use a tax software accounting system – this can help you develop appropriate reports at tax time and can alert you of changing tax rules.
4. If you hire a tax accountant make sure they have experience with taxes as they relate to your specific business.
5. Keep records—including serial numbers and detailed receipts—for all business equipment, office machines, and vehicles.
6. Don’t use funds that are earmarked for taxes as a means to tide your business over in hard times. This will result in a worse financial crunch come tax time and if you can’t pay, you risk the loss of your tax ID.
7. Educate yourself on the correct way to estimate your taxes – This may be overwhelming and a tax professional is highly recommended for small business owners.
8. Determine an appropriate fiscal year so that you can plan better for tax time: A fiscal year refers to an accounting year that does not end on December 31.
9. Tax records should be kept for a minimum of three years – unless related to property and depreciation. In that case, tax records should be kept for three years past the time ownership ends.
10. Keep detailed records on business vehicles’ usage – both on the job and off.
11. When operating on foreign soil and dealing with other currencies and tax laws, be sure your tax professional is vigilant in obeying the new rules on foreign bank accounts enacted in the Foreign Account Tax Compliance Act, or FATCA.
12. Work with your tax professional to determine whether you should operate as a partnership, an S corporation, an LLC, or a sole proprietorship.
13. Become familiar with your requirements in regards to the Affordable Care Act.
14. If you are not able to pay taxes owed to the IRS, or another tax agency, contact your tax professional right away. There are appropriate steps that can be taken and ignoring it only makes it worse.
15. If you are paid in cash – that payment is taxable. The IRS has sophisticated technology to track spending habits and bank accounts to build their case.
Let the experts handle your taxes for you. It is usually a mistake for a business owner to complete their own taxes, and doing so can distract you from making your company a success.
Do You Need to Fill out Schedules C & EPosted on May 30th, 2018
Schedule C is a form that reports income for any self-employed individual. If you are the sole proprietor of your business (even if it is a single-member LLC) or an independent contractor, you need to fill this form out. Sadly, since you won’t have a boss that writes your own checks, you don’t have the opportunity to have taxes taken out for you; you have to pay the full taxes of your income.
That being said, claiming any and all genuine business expenses on your Schedule C will reduce the amount of income that is taxable. Make sure that you gather as many receipts for your business expenses as you can. Schedule E is the form for certain types of supplemental income: income from rental properties you own, any royalties you earn, and income reported on a Schedule K-1 (from partnerships or S corporations) are some of the more common examples.
If, however, income from multiple rental properties is your primary form of income, you may have to use a Schedule C for your sole proprietorship instead. In addition to income, a Schedule E is also used to report business losses (paying for an apartment’s carpet replacement, for example) and helps prevent you from paying too much in taxes. This only applies to “at risk” situations, which is not necessarily the same thing as the total money lost.
When it comes to taxes, honesty is always the best policy; if you run your own business or rent a room to someone, and that income is at least the minimum taxable amount, you will need to fill out a Schedule C or E, respectively. Filling out these forms do not necessarily mean that you will be paying too much in taxes, nor does that mean that you won’t be able to make up for these taxes either. If you see yourself filling out either Schedule, feel free to contact your trusted tax preparer or accountant to discuss these forms. When tax day comes, being prepared for Schedules C and E can save you time and, possibly, money.
How to Achieve Financial Goals with a BudgetPosted on May 28th, 2018
Planning ahead for your finances can save you stress down the road, and ensure the success of your personal and professional goals. Outlining a monthly budget is one of the most effective ways to both organize your finances and chart your progress. The following guideline offers some helpful suggestions to stay organized and motivated as you chart your financial future.
The Importance of Setting Up a Budget
Assessing the amount of money you earn every month after taxes is the first step toward setting up a reliable budget. Next, you should determine how much is needed to satisfy monthly bills and necessary living expenses. Setting up a budget will go a long way toward helping you accomplish your financial goals as you streamline purchases.
Splitting your monthly income into three categories is a popular budgeting method. Under this system, half goes toward absolutely necessary expenses like housing, transportation, utilities, and food, 20% covers retirement and debts, and the last 30% is spent on personal expenses, such as entertainment, personal care, or charity, to name a few examples.
As far as personal purchases are concerned, you should really weigh the overall value of what you’re spending money on. Is the purchase an impulse? Does it benefit your daily life in any way beyond instead gratification? One popular sentiment many apply to their spending habits is the idea that memories are more valuable than individual material goods.
The Big (and Small) Picture
As you establish your financial goals, it’s helpful to organize a plan that addresses each goal in smaller, bite-sized installments. We can easily overwhelm ourselves with long-term goals, so assessing what can be realistically accomplished within the near future may ensure long-term success.
Along with drawing up a budget, creating a financial calendar will help organize your tax schedule, whether you have upcoming appointments or need to remind yourself to pay quarterly taxes on time. This visualization can also help you track long term goals through smaller, more immediately achievable tasks, while also allowing you to track your current status. Knowing where you stand will help you stay current on financial goals. Tracking your net worth can also prevent the resumption of bad spending habits and stop current ones in their tracks.
Making the Most of that 20%
The simple act of listing your debts will help you form a plan of attack. Focusing on interest rates instead of what you owe will allow you to effectively prioritize the payoff of individual debts. The bill with the highest interest rate is costing you the most money, so it should take top priority on your list. Once that debt is paid, apply the same method to the next item.
Is QuickBooks Better Than Manual Records?Posted on April 17th, 2018
If you are an entrepreneur running a small or medium-size business, you may be wondering what bookkeeping method is right for you. Even without an accounting background, you have likely heard of QuickBooks, but you may have questions about the benefits of using the software if you’ve been keeping your books manually.
The truth is, QuickBooks offers many advantages over manual bookkeeping, as it is specifically designed to simplify accounting tasks. Here’s an overview of QuickBooks, as well as some of the benefits of using it instead of a manual accounting system, including Excel and other spreadsheets.
What is QuickBooks?
QuickBooks is a suite of computer programs designed to make bookkeeping, budgeting, and payroll easier for small business owners to manage. It was developed by Inuit in 1998, and since then has become the leading bookkeeping software in the nation. Over the years, dozens of versions have been created to meet the needs of various industries.
Besides financial recordkeeping, QuickBooks provides tools to manage inventory, invoices, vendors, and clients. It enables you to track different aspects of your business, as well as overall company growth.
Why QuickBooks is a Better Solution for Your Business
Using manual accounting methods means you will have to design your own accounting system and processes. Unless you are an accounting professional, these systems won’t be optimal for your business. QuickBooks has developed industry-specific products that allow you to take advantage of high-level reports tailored to your business.
Another issue with manual accounting methods is that one mistake could jeopardize your whole accounting system, resulting in inaccurate records. Spreadsheets are prone to formula errors that are hard to catch. With QuickBooks, the formulas are built-in, ensuring accurate reporting.
QuickBooks maintains an audit trail, so if there are changes being made to your books, you will know who made them and when they were made. You will never have to wonder which version of your spreadsheet is up-to-date, especially if more than one person is accessing the files.
As your business grows, you may wish to outsource your accounting or bookkeeping tasks. Most CPAs will be able seamlessly transition using QuickBooks, as opposed to a home-grown accounting system.
Schedule a Consultation With Us Today!
At R Mark Geurkink, PLC, we can work with your Oklahoma business to create a QuickBooks accounting system that is easy to use. We are proud to serve those living or working in Norman, as well as the surrounding communities, and would love to see your business grow and prosper.
Why and How? Proactive Tax PlanningPosted on February 10th, 2018
Many business owners and taxpayers are accustomed to the idea of “reactive” taxes. In this style of filing, you make your various expenditures throughout the year, see your company’s sales and expenses, and determine how much you owe at the end of the year. However, this form of filing often leads to business owners owing more in taxes. As a result many accountants work with businesses to curb the amount you would owe during tax season.
Why engage in Proactive Planning?
Proactive tax planning allows a business owner to limit tax liability by working within the various state and federal tax laws. Not only does this approach save business owners money, but allows your accountant more time in finding the best deductions and tax credits each year.
The tax landscape is always changing, and implementing an effective tax plan can also help to ensure that your business’ books are kept up to date. This continuous knowledge of the state of your business and the developing tax laws can also help you find beneficial reductions to how much you need to pay.
Business owners looking to expand, incorporate, or otherwise change their business model during the year are especially well served by an adaptive tax plan. This way, you will be able to account for the change in your company and can have a strategy in place to mitigate the corresponding differences in the tax code.
How to start your Proactive Tax Plan
The first step in planning for the upcoming tax season is to find an experienced accountant or CPA. Hiring a professional will allow you to keep your attention on your business ventures, without needing to focus too much on current tax laws. Additionally when creating your tax plan, it is always beneficial to allow your tax professional to assess the current state of your company to strategize a savings plan.
If you have questions about tax planning or are looking for a strategy that is tailored to your specific income or business, contact our firm today.
Accounting Challenges of Oil and Gas CompaniesPosted on January 15th, 2018
One of the more popular industries in the immediate area we serve is the energy industry. In addition to receiving our firm’s help for immediate concerns, many of the business owners in this field seek guidance on balancing books better on their end. There are unique challenges executives should be aware of when it comes to managing the fiscal responsibilities of their oil and gas company.
How Should You Account for Operating Expenses?
When you are setting up the bookkeeping, tax, and payroll functions for a company involved in finding and developing crude oil and natural gases, you have two options for accounting approaches. These options are the successful efforts and full cost methods of accounting.
Under successful efforts, an oil and gas company can claim only the expenses associated with the successful discovery of new oil and gas reserves as a long-term asset. The costs of unsuccessful findings are not capitalized; they are paid with the revenue for that period of operation. In contrast to that method, full cost states that all operating expenses related to finding new reserves can be claimed as long-term assets, regardless of how successful that exploration was.
Each approach impacts your income statements, cash flow reports, and projections based on these in different ways. Discussing these with an accountant like R. Mark Geurkink is the best way to determine which is right for you.
Evolving Regulatory Landscape
The functions of balancing books and adhering to all regulations are closely related. However, few ventures are as subject to potential regulatory changes as oil and gas companies are.
The manner in which oil and gas are found, developed, used, and taxed are all highly politicized. Regulatory policies and tax rates can change unexpectedly with each election as new legislators are put in control of industry oversight, making it difficult to plan ahead. Therefore, you need to ensure your company is prepared to make sudden, significant adjustments to how tax obligations are paid and its income is reported.
Supply and Demand
In most industries, businesses have the flexibility to match their present supply with changes in marketplace demand. Oil and gas companies, however, rarely have the luxury of cutting costs or improving productivity quickly. This is due to the large investments and factors beyond owners’ direct control, such as whether a new reserve can be found. Operating within this field requires you to plan far ahead and diligently monitor the changes in the demand for your product.
Contact Us for Energy Industry Accounting
Mark Geurkink, CPA, PLC offers accounting for oil and gas companies in Norman, OK, with service provided to the greater Oklahoma City metro area. We will help you manage financial responsibilities efficiently so that your energy company can operate successfully in the energy industry. For more information, call our firm today.
5 Budgeting Tips to Save CashPosted on November 22nd, 2017
Saving money is a difficult commitment to make, but it provides benefits in the long run. Life throws unpredictable events at us, and preparing our budgets to account for accidents or emergencies grants peace of mind. Saving is also one way to hold off on wanton spending that drains accounts rapidly. The following tips to save money can inspire balance in your daily financial habits.
Stick to a 30 Percent or Less Rule
It’s hard to save money without setting up a cap on your spending. When payday rolls around and there are new products or items grabbing our attention, it’s incredibly difficult. We recommend setting a limit of 30 percent of your paycheck to spend on entertainment and leisure. This reserves 70 percent use for essentials. Use 30 percent as a starting point and decrease the limit to save even more money as you become more confident in your saving strategy.
Establish Financial Goals
Nothing helps curtail personal spending and establish a direction more than creating a strategy. By writing down financial goals, such as paying off your car by a certain date, you lay a foundation for future success. Knowing where your money flows is liberating and strengthens resolve in saying no to frivolous purchases.
Manage Personal Cash Flow Daily
Dedicating one minute a day to looking over your bank account makes you aware of where you spend the most. This also promotes comfortability in managing one’s finances. Get cash out daily or weekly to keep to a specific spending amount, which is a research-proven technique that keeps your cash account stable. When swiping cards is the go-to, the convenience causes individuals to spend much more.
When new products appear on the market, whether a new gadget or guilty pleasure, it important to hold back the impulse to buy it. Impulsive shopping tends to influence purchasing habits and tricks us into buying items we don’t need.
Pay off Larger Debts First
When paying off credit card debt or loans, it’s beneficial to chip away at a loan with a higher interest rate. If you wait to pay, amounts owed increases exponentially. Although paying off smaller amounts of debt with smaller interest rates seems more manageable, they won’t cost as much as high interest debt. By hedging larger loans and limiting the traction their high interest gains, the debt is more manageable over time.
Year Round Tax Planning for Reduced LiabilityPosted on November 10th, 2017
April 15 is a stressful day of the year, and especially when attempting to cram in months of tax preparation in a few days. If receipts and records are not well-organized, keeping track of deductible expenses grows increasingly difficult. This limits the size your return, or can even cause you to pay taxes incorrectly, which incurs liability that the IRS can penalize. A stressful tax season is entirely avoidable, but it requires time, effort, and planning.
Keeping Records for a Successful Tax Season
Detailed records, either physical or digital, is beneficial when it comes to successfully submitting your tax payments. Invest in organization for you receipts and records, either with a physical filing cabinet, or web-based resources. Online services such as QuickBooks are available to digitize all records and to make financial transactions accessible 24/7. Records are important for they keep individuals and small businesses aware of their cash flow and tax deductible items that will save money each April.
Stay Up-to-Date on Tax Code
Tax law changes frequently enough to affect how much an individual owes the state or federal government. It’s easy to stay on top of these changes by attending free classes in your community, doing online research, or speaking to a tax professional. Keep abreast of the changes to avoid surprising bumps in taxes owed, and doing so on a regular basis will ensure year-long tax prep success. Quarterly reviews of your taxes are recommended to make sure your information is accurate.
Hire Tax Professionals
The hardest part of preparing for taxes year-round is doing so while managing other areas of your life. Taking control of tax preparation ties up your time and energy that is needed elsewhere. Our affordable services will grant peace of mind, financial stability, and precise tax preparation for year-round success. The tax code is infamous for being complex and challenging for most individuals, but professional help can untangle your tax complexities and enable you to receive the return you deserve. This will keep your finances in check and ensure that the IRS doesn’t follow up with audits or penalties.