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Need to Set Up Users in QuickBooks Online?

February 19, 2020 by byfadmin

Your employees probably don’t need access to every corner of QuickBooks Online. Here’s how to set limits.

One of the best attributes of QuickBooks Online is that multiple users can access it without having software installed on their PCs. No more paying up front for a boxed copy that you’ll store on your hard drive. You just pay a monthly subscription fee.

Unless you assign specific access rights to your users, though, they’ll be able to see and do everything that you see and do on the site. You undoubtedly trust your employees or you wouldn’t have hired them, but it’s just good business practice to restrict individuals to their specific work areas. You probably did the same thing if you ever ran a manual accounting system.

QuickBooks Online makes this easy. Once you’ve set up individuals for a specific set of screen permissions, that’s all they’ll see when they log in with their user names and passwords. Here’s how it works.

Several Levels

Click the gear icon in the upper right of the QuickBooks Online screen, then select Manage Users under Your Company, then click New. This mini-interview will open.

QuickBooks Online’s mini-interview will walk you through the steps required to assign access rights to employees.

As you can see, four access levels are supported. You’ll probably select Regular or custom user most often because you can drill down and set permissions at the screen level. The Company administrator is you, of course, unless you’ve assigned this role to someone else. The user at this level has access to everything.

You can also let someone see Reports only, with the exception of payroll reports and those that contain contact information about customers, vendors, and employees. If you have employees who submit time sheets but don’t otherwise work in QuickBooks Online, you can let them in to do Time Tracking only.

Tip: There’s a fifth option here. You can grant us access to your QuickBooks Online company data, making it easier for us to monitor and troubleshoot your accounting information. Let us know if you want to take advantage of this.

Paring Down Access

Click the button in front of Regular or custom user if it’s not already highlighted, and then click Next. This third screen in the mini-interview deals with Customers and Sales and Vendors and Purchases Access Rights. Click All or None if appropriate.

This screen in the mini-interview helps you restrict user access in Sales and Purchase areas.

If you’re allowing Limited access in these two areas, be sure to read the fine print explaining what is and isn’t allowed. When you’re satisfied with your selection, click Next.

On the next screen, you’ll set administrative rights for that user by indicating whether he or she can manage other users’ access rights and work with your subscription status and other company information.

You’ll supply the individual’s email address and name on the following screen. This will be used to send an email inviting the user to sign in using an existing Intuit Business Services user name or one he or she creates. Click through the next screen and click Finish when you’re done. The mini-interview will close, and you’ll be back at the Manage Users page.

Your User Overview

The Manage Users page displays a list of all users who have been invited or are active.

The Manage Users screen

The table here lists all users’ names, email addresses, access rights, billable standing, and status. If you haven’t received a response to an invitation (Invited), you can click the Resend button to issue another email. When he or she responds, Invited changes to Active. Click on a row to highlight an individual, and you can Edit or Delete him or her, and see an audit log of Activity.

You or your appointed Master Administrator should set up access rights before any new employee is admitted to QuickBooks Online. Let us know if you’re having trouble with this element of the site, and if you’d like us to join your list of active users. It’s a lot easier for you and us if we can get in there and see what problems you’re having — and resolve them.

Take advantage of QuickBooks today! Request a free initial consultation or call us today at 704-609-1119 and ask for Matt Rice.

Time for a Tax Checkup

January 15, 2020 by byfadmin

Midyear is a good time to review your tax situation. You can make sure your estimated tax payments are on track and look ahead to see if there are any tax-saving opportunities you can take advantage of before year-end.¹

The Need to Estimate

The IRS requires individual taxpayers to make four quarterly installment payments of estimated tax (based on the amount of the “required annual payment”) to satisfy their tax liability for the year. Individuals also have the option of paying their income taxes throughout the year through payroll withholding.

To avoid penalties, payments must equal the lower of (1) 90% of the tax liability for the current year or (2) 100% (110%, for higher income individuals) of the tax liability on the prior year’s return. No penalty will apply if the tax shown on the return (after withholding) is less than $1,000.

Paying the Right Amount

Though you don’t want to underpay, you might not want to overpay either. A refund may be welcome, but it’s essentially an interest-free loan to the government.

If you need to change the amount being withheld from your paychecks, contact your payroll department and ask for IRS Form W-4 so you can make the appropriate adjustments. If you have additional nonwage income, you may need to increase your withholding or make estimated payments to avoid an underpayment penalty. If you are self-employed, you probably need to make estimated tax payments.

Save Taxes, Save for Retirement

Do you (or your spouse) have a retirement savings plan at work, such as a 401(k) plan or 403(b) tax-sheltered annuity? You can reduce your 2019 income tax liability by making pretax contributions to the plan. Permitted contribution levels for such plans are typically generous. For 2019, an employee may contribute up to $19,000 ($25,000 for those 50 and older) to either a 401(k) or 403(b) plan, unless a lower plan limit applies.

Capitalize on Lower Rates

You also might be thinking about selling an investment that has performed well. If the investment is held in a regular taxable account, your capital gain would potentially be subject to tax. However, long-term capital gains are taxed at lower rates (generally 15% or 20%) than your ordinary income.

Source/Disclaimer:

¹This communication is not intended to be tax advice and should not be treated as such. Each individual’s tax situation is unique. You should contact your tax professional to discuss your personal situation.

Matthew J. Rice CPA offers reliable and comprehensive tax planning and preparation services to help ensure that you take advantage of current tax laws, submit accurate and on-time tax returns, and put together a plan that may significantly reduce your tax liability. Call us at 704-609-1119 now or request a consultation online to learn more.

What to do to Keep Your Business Healthy Before It’s too Late

December 18, 2019 by byfadmin

Businesses that end up on the critical list usually show signs that they are ailing long before they need intensive care. By recognizing these signs and making a concerted effort to tackle the underlying problems early on, owners can often turn their troubled businesses around and return them to good health.

Warning Signs

Signs of distress may include:

Several quarters of declining sales and lower profit margins
Persistent cash flow problems
Inability to meet a lender’s requirements for a working capital line of credit
Declining productivity
Poor employee morale
The loss or failure of one or more significant customers

Don’t Wait

Business owners sometimes make the mistake of waiting too long to act on bad news. While a bad quarter or two often can be explained away, a persistent problem shouldn’t be ignored. A business that has previously been on a growth track has all the more reason to investigate the reasons for a downturn promptly.

Get on Firmer Ground

Once a continuing problem is recognized, steps should be taken as soon as possible to curb the downward spiral and stabilize the business. It may be important to update bankers and suppliers regarding the situation and let them know that efforts are being made to turn it around. Open communication can help show that management is serious about reviving the business and can make it easier to enlist help from these groups later on.

Analyze Operations

Decisions can’t be made in the dark. Despite the daily pressures that may only intensify during hard times, it’s important to keep financial records and disseminate key information to management for analysis. Expenses should be looked at in detail to determine which can be reduced or eliminated to improve cash flow.

Declining sales can reflect a slow economy, but a downward trend also may indicate that the business is losing market share. This is not the time to let customer service and quality standards falter. Nor is it a time to ignore the competition. A business that is repeatedly losing sales to competitors has to ask whether it is still in touch with — or has lost sight of — the market’s demands.

Take Action

Once all the groundwork has been laid, it’s time to put the plan into action and start making the necessary changes. This is the point when the owner’s leadership skills are put to the test. It is the time when he or she has to inspire and energize managers and employees to make a sustained, disciplined effort to revive the business and retain the support of suppliers, bankers, and customers.

Matthew J. Rice CPA provides a variety of accounting, tax, and financial services to Charlotte business owners. Call Matt Rice at 704-609-1119 and ask for a free initial consultation today to find our how we can work together for your success.

Hire Nothing But the Best

November 20, 2019 by byfadmin

How can your company attract and retain top employees? It’s not always easy, especially for small businesses. Having a streamlined hiring process and ensuring that your salaries and benefits package are comparable to other, similar companies in your area can help make your company an attractive destination for high performers. Here are some pointers to jump-start your thinking.

Simplify the process. Make sure job responsibilities are clearly described when posting your openings. Candidates should be able to easily ascertain if they have the appropriate qualifications for a position. Also, describe any documentation candidates may need to submit with their applications.

Be open and professional. Let candidates know early in the process, preferably in the job posting or during interviews, how much the position pays. Top candidates appreciate candor about such matters. Treat candidates professionally during every stage of the process — it sends a strong signal about your company’s culture.

Evaluate your benefits package. Compensation and benefits are important factors when it comes to attracting and retaining top talent. Salaries should be in line with what other companies in your region pay for specific occupations. Attitudes toward health and retirement benefits can influence employment choices and how committed and engaged employees are after they are hired. Your company will have a leg up on attracting and retaining the employees it needs to succeed and gain a competitive advantage if it can offer the benefit options top performers want.

If you are unsure whether your current benefits package is competitive, please contact your financial professional. An analysis of your current retirement and insurance benefits will help you identify areas that may need to be improved if you are to attract and retain the best employees.

If you’re ready to fulfill your dream of starting a new business, call us at 704-609-1119 or request a free consultation online now to get started. We work with new business owners in a wide variety of industries.

Are You Giving Your Taxes Year-round Attention?

October 23, 2019 by byfadmin

Giving your taxes your full attention just once a year isn’t the best business strategy. Experts suggest that a year-round approach is better for your finances. Click through to learn the best ways to evaluate the impact of taxes throughout the year.

Numerous tax experts agree that addressing your tax liability effectively requires planning throughout the year. Those business owners who reap the most benefits consider their taxes year-round, rather than waiting to focus on tax payments just a few weeks before the filing date.

A typical small business qualifies for roughly a dozen tax deductions. For example, you may be able to claim deductions on the following:

Cars operated for business purposes
Business-related travel and entertainment expenses
Purchases of office supplies, furniture, equipment, and software programs
Telephone expenses
Contributions toward insurance policies, retirement plans, and pension funds

It’s surprising how many small businesses never take advantage of these deductions, mainly because they suffer from the “tax-planning-happens-but-once-a-year” syndrome. To fully benefit from these deductions, it’s important to maintain your expense records throughout the year.

Your goal should be to reduce your tax liabilities by retaining records of your purchases and determining the proportion of business costs in combined expenses. By monitoring your expenses closely all year, you can analyze each expense for its tax impact as it’s made. Additionally, smart business owners should contemplate three key steps to tax planning:

1. Invest in the most effective tax record tools for your business. Whether it’s spending roughly $30 on journals and tax books with a set of refill sheets costing less than $10 to do manual bookkeeping or investing up to $2,000 on the latest online software tax-filing applications, you will benefit from more rigorous and accurate recordkeeping. Sure, the initial investment could be significant, but regular monitoring should facilitate tracking expenses and making advance payments, which will save you money in the long run.

2. Determine when you need professional tax tips and planning advice. At times you will be able to justify paying for professional tax services, particularly if you need advice on unclear requirements in tax laws that could be in your favor. To prevent unnecessary complications and aggravations, you must avoid violating tax laws that may be applicable to your small business. If you are unsure of these laws, using the tools at your disposal, such as current software and online recordkeeping, and complementing those capabilities with professional advice when needed, can help you keep your taxes under control.

3. Establish year-round tax planning goals. A good tax-planning strategy will help you accomplish some of these goals:

Reduce the amount of taxable income
Claim any available tax credits
Lower your tax rate
Control the time when taxes must be paid
Avoid the most common tax-planning mistakes

Plus, a year-end review at the end of your fiscal year or “busy season” can be most effective if you’ve maintained clear records and an understanding of your financial position throughout the year.

Of course, this is just a general list. Not all deductions are available in all situations, and rules change frequently. Give us a call to discuss which deductions apply to your company.

Business Tax and Bad Debt

September 30, 2019 by byfadmin

Do you have a client or customer who won’t pay? Even when all attempts to collect a bad debt have failed, the IRS may give you a break at filing time. Click through to see how to take that bad debt off your taxes.

When can you use bad debt to reduce business income? Even when you take the customer to court and you still don’t get your money, there’s a way to make lemonade from this lemon of a customer.

If your business has already shown this amount as income for tax purposes, you may be able to reduce your business income by the amount of the bad debt. Look at bad debt as an uncollectible account—a receivable owed by a customer, client or patient that you are not able to collect.

Bad debt may be written off at the end of the year if it is determined that the debt is in fact uncollectible.

According to the IRS, bad debt includes:

Loans to clients and suppliers.
Credit sales to customers.
Business loan guarantees.

How do you write off bad debt?

Your business uses the accrual accounting method, showing income when you have billed it, not when you collect it.

If your business operates on a cash accounting basis, you can’t deduct bad debt because you don’t record income until you’ve received the payment. If you don’t get the money, there’s no tax benefit to recording bad debt. You only record the sale when you receive the money from the customer.

Under accrual accounting, manually take the bad debt out of your sales records before you prepare your business tax return.

You must wait until the end of the year, just in case someone pays.

Prepare an accounts receivable aging report, which shows all the money owed to you by all your customers, how much is owed and how long the amount has been outstanding.
Total all bad debt for the year, listing all customers who have not paid during the year. Only make this determination at the end of the year and only if you’ve made every effort to collect the money owed to your business.
Include the bad debt total on your business tax return. If you file business taxes on Schedule C, you can deduct the amount of all bad debt. Each type of business tax return has a place to enter bad debt expenses.

It makes sense in any kind of business—no income recorded, no bad debt.

A business bad debt often originates as a result of credit sales to customers for goods sold or services provided. The best documentation is likely to be a detailed record of collection efforts, indicating you made every effort a reasonable person would in order to collect a debt.

Take some solace by claiming a bad business debt deduction on your tax return. Not exactly a guarantee because you need to show that the debt is worthless, but it’s good to know there may be some relief.

We offer a variety of tax planning services to both businesses and individuals. Conscientious tax planning throughout the year can save you money and make tax time easier. Call us at 704-609-1119 and request a free initial consultation to learn more.