Accounting Software: Is it time to upgrade?

When businesses start out, they generally don’t need a very expensive or complicated accounting program to handle their accounting functions. They simple require something that will keep tracking of their payables and billings, and possibly payroll. However, as a company grows and expands, its needs in the area of accounting can also grow. Read More »

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Are You Running Blind? Use This Tool to Peer Into the Future

No, we’re not recommending that you purchase a crystal ball. But there are some tools you can use to help you run your business with foresight instead of hindsight. One of the best tools is to develop a cash flow projection report. Read More »

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1099 Vendor Setup in Quickbooks

In addition to selecting all your appropriate accounts under the 1099 setup preferences, discussed in our previous post, you will need to set up your 1099 vendors properly as well. Under each vendor’s setup there is an Additional Info tab. On this tab, you will find a check box labeled “Vendor eligible for 1099”. Right above this check box is a field for entering the vendor’s tax ID number. For every vendor who provides services for you, and is not incorporated, you should have the 1099 box checked and their tax ID number recorded. This includes vendors whom you haven’t paid, or don’t expect to pay, $600.00 or more. It will also be important to have their mailing address in your vendor setup for 1099 purposes as well.
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Tags: 1099 Form, Amp, Info Tab, Mailing Address, Payables, Precious Time, Preference, QuickBooks, Setup Preferences, Tax Id Number, Vendor Setup, Year End

1099 Settings in Quickbooks

If you hire services performed by other individuals or companies during the year, you may be required to supply them with a 1099 form at the end of the year, showing the full amount of funds distributed to them for their services. Corporations and vendors whose total payments for the year totaled less than $600.00 do not need to receive 1099 forms, but the rest of those vendors will. In order to print out accurate forms at the end of the year from your Quickbooks software, you will need to make sure that you have your 1099 settings in Quickbooks set appropriately.

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Tags: 1099 Form, 1099 Forms, Amp, Cleaning Service, Company Preferences, Corporations, Employee Compensation, Expense Account, Office Cleaning, Payables, Preference, Quickbooks Software, Subcontractor, Threshold

Sales Tax (Again): Cash vs. Accrual

Since we just finished up our series on Sales and Use Tax Audits, I thought we might as well hit one more item that relates to sales tax:  the effect of cash versus accrual accounting methods on your sales tax filings.

Just as a refresher, when your accounting is done on an accrual basis, revenue is recognized when the billing goes out to the client. On a cash basis, revenue is recognized when the client actually pays the bill, and you have deposited the funds. The same is true on the payables end. In an accrual system, expenses are recognized when your vendors bill you. In a cash system, the expenses are recognized on the books until you actually pay those bills.
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Tags: Accounting Methods, Accrual Accounting, Accrual Basis, Cash Basis, Cash Vs Accrual, Company B, Payables, Sales And Use Tax, Sales And Use Tax Audits, Sales Tax, Sales Tax Rate, State Tax, Tax Filings, Tax Period, Tax Return, Wit