a-la-carte-bookkeeping

6 ways I help businesses save time, money & gain clarity on their financial situation

Wed, 25 Feb 2026 20:35:18 GMT

6 ways I help businesses save time, money & gain clarity on their financial situation

After 25+ years of experience, here are the 6 ways I help business save time, money, and gain clarity on their financial situation:

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The first thing that many clients need is a high-quality cleanup. This is getting all of their past records straight so they know their exact revenue, expenses, and profit. This allows my clients to finally file taxes properly, apply for a loan, sell their business, etc.

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After the clean-up, transactions are continuously sorted to make sure that the business is maintaining proper financial health. This alone can save some business owners 5-10 hours per week.

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My detailed monthly reports on earnings and expenditures go beyond numbers; they provide a narrative of the business’s financial health, helping clients understand trends, identify opportunities, and address challenges.

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By sorting through the finances, it’s common to come across many “financial leaks” I see in my client’s businesses - areas they’re unnecessarily spending money. Fixing these can prove to be a massive savings opportunity.

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Continuous organization ensures clients are not just prepared for tax season but also potentially save on unnecessary tax expenditures.

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By having their finances continuously organized, my clients are free to run their business without worrying about their finances. They know exactly how much they’re making, and they have a clear idea of where they’re going with their business now that they have a solid financial foundation.

1099 Forms

Mon, 11 Dec 2023 16:34:50 GMT

1099-NEC and 1099-MISC

File form 1099-NEC, for each vendor* in the course of your business to who you have paid the following during the year:

- At least $600 in services performed by a vendor who is not your employee(including parts and materials), or payments to an attorney

- These are typically due out by the end of January to IRS and vendor* (See irs.gov to find the exact date each year)

File form 1099-MISC, for each vendor* in the course of your business to who you have paid the following during the year:

- At least $10 in royalties

- At least $600 in rent, prizes and awards, other income payments, etc.

*Vendor - This could be a company name or a person name; companies can be sole proprietor, single member LLCs, multi-member LLCS

*Note - A W-9 should be requested and collected throughout the year, when you first start doing business with the new vendor. All the information you will need to file a 1099, will be on a W-9 form. You may not know if this vendor is a 1099 without the W-9 information. These W-9s must be retained on file.

There are forms out there that you can buy that allow you to type the information in and print out red copy for the IRS and the additional copies needing to be mailed. E-filing is an option, usually an additional charge per vendor*.

To read more on instructions for 1099 forms, click this link here https://www.irs.gov/pub/irs-pdf/i1099mec.pdf

Why You Shouldn't Fear Artificial Intelligence in Accounting

Mon, 23 Oct 2023 15:22:15 GMT

AI in Accounting

ChatGPT, the now famous artificial intelligence (AI) chatbot, along with other competitive chatbots, is already replacing human beings in a wide variety of roles. This has led to cost savings and general satisfaction among the companies that have adopted it, and in the process, kicked people to the curb.

ChatGPT in particular and AI in general aren't ready to replace accountants yet and might never be. In fact, accountants who use AI wisely can get a jump on those who don' t. AI can help you run you're firm more efficiently. Some ways you can use AI to improve your firm's operations would be marketing and website content, predictive cybersecurity, and financial reporting for forecasting.

AI is imperfect. This is especially true for ChatGPT. It is amazing that this AI can produce an essay about almost anything that's passable as a college paper or even a news story, but there is one problem, ChatGPT can get information wrong. An AI can only be as reliable as the information, so when ChatGPT gives you false information once, can you really trust it any other time?

If you would like to read more, click this link https://www.rightworks.com/blog/why-you-shouldnt-fear-artificial-intelligence-in-accounting/

What's New in QuickBooks Desktop 2024

Mon, 16 Oct 2023 15:35:40 GMT

QuickBooks Desktop 2024

Now that QuickBooks has released the Desktop 2024 version, it's time to talk about what features they've added.

QuickBooks Desktop 2024 has better data security, more productivity, and a better view of inventory levels. Going off of data security, QuickBooks uses best-in-class security protocols to protect your data. QuickBooks Desktop 2024 and Enterprise 24.0 now have 256-bit encryption to keep your data safe.

More features to this new Desktop 2024 package in Enterprise is customer prepayments, item category enhancements, inventory reports enhancements, and more.

To watch Hector Garcia go over these new features on QuickBooks Desktop 2024 click here https://www.youtube.com/watch?v=MdOvpM9lt6Y

Business Meal Deductions

Mon, 02 Oct 2023 15:43:35 GMT

Don't Know When You Can Deduct Business Meals?

You used to be able to deduct costs of both business meals and entertainment meals with clients. Now, the entertainment costs are no longer deductible. To qualify for the enhanced deduction on business meals, the business owner or an employee of the business must be present when food or beverages are provided, meals must be from restaurants, and the expense cannot be lavish or extravagant.

Business owners should know that the cost of the meal can include taxes and tips, and the cost of transportation to and from the meal isn't part of the cost of a business meal. Entertainment costs are no long deductible, however business owners may deduct the costs of meals during an entertainment event, if the purchase of the meals occurs separately from the entertainment, as well as the cost of the meals is separate from the cost of the entertainment.

Introducing AI in Intuit Assist

Tue, 19 Sep 2023 15:49:37 GMT

AI-Powered Financial Assistant in Intuit Assist

Intuit Assist for QuickBooks now has, an AI-powered financial assistant, which is currently in beta and rolling out more broadly later this year. Intuit Assist can help your clients' businesses thrive by automating tasks and workflows, including invoicing, building actions plans to meet business goals, and more.

To read more about this article, click the link below.

https://www.firmofthefuture.com/artificial-intelligence/intuit-assist-in-quickbooks/?cid=DR_EM-ELM6028-002-Button1-apollonamechange-NA-NAQB-CN-PROD-NA-US-QBO

QuickBooks Desktop

Mon, 11 Sep 2023 18:58:30 GMT

Is It Time To Update Your Existing Desktop Software?

Are you on QuickBooks Desktop 2021 or the new Desktop subscription 2023? Does your business rely on these financial platforms?

2021 is the last 3-year subscription, anyone that is on this platform when Intuit releases the 2024 software, will need to update/upgrade.

In 2022, Intuit launched their yearly subscription for QB Desktop. You will now need to update your software on a yearly basis.

Intuit usually makes their 2024 software: Pro, Premier, and Enterprise available sometime in October 2023.

Intuit will give you a grace period to get the software updated/upgraded, but after that time frame, you will start losing functionality. (ie, updates, becomes unstable, susceptible to hacking, apps no longer work, at risk of having your company file being corrupted.)

PLEASE don't wait till the last minute to update your software, your data is too important to lose!

For more information or help, please reach out to us.

Understand The New Navigation Menu in QuickBooks Online

Tue, 05 Sep 2023 16:45:07 GMT

Check Out The New Left-Hand Navigation Menu That Will be Implemented by Intuit in 30 days!!

We recommend that you explore the new menu before Intuit fully implements it. The latest QuickBooks Online menu gives you quick access to your most important job centers like invoicing, banking, employee management, and more. We'll show you around your new menu and how you can customize it to best meet your workflows and habits.

https://quickbooks.intuit.com/learn-support/en-us/help-article/invoicing/internal-test-quickbooks-online-navigation/L8cX8o5Ep_US_en_US

Click on the link to read more about the new menu and instructions by QuickBooks!

Credit Cards vs Debit Cards

Mon, 28 Aug 2023 16:19:02 GMT

Do You Know The Difference Between Using Credit Cards And Debit Cards?

Here is just some basic information on credit cards vs debit cards. For more information, click on the link below. https://www.investopedia.com/articles/personal-finance/050214/credit-vs-debit-cards-which-better.asp

Hacking is at an all time high right now. Businesses are stretched very thin, we can give you tips to minimize your high-risk of being hacked.

A-La-Carte Bookkeeping

Thu, 24 Aug 2023 16:24:37 GMT

Offering QuickBooks Online and Desktop on a Hosted Cloud Platform

A-La-Carte Bookkeeping

karen@alacartebookkeeping.com (Karen Hall) — Mon, 21 Aug 2023 16:21:47 GMT

Offering QuickBooks Online and Desktop on a Hosted Cloud Platform

Here’s what taxpayers need to know about business related travel deductions

Mon, 11 Jul 2022 20:40:25 GMT

Tax Tip 2022-104: Here’s what taxpayers need to know about business related travel deductions

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Fast facts to helps taxpayers understand backup withholding

Mon, 11 Jul 2022 20:37:10 GMT

Tax Tip 2022-93: Fast facts to helps taxpayers understand backup withholding

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Here’s what businesses need to know about the enhanced business meal deduction

Mon, 11 Jul 2022 20:35:30 GMT

Tax Tip 2022-91: Here’s what businesses need to know about the enhanced business meal deduction

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Optional Standard Mileage Rates

Mon, 11 Jul 2022 20:27:37 GMT

A-2022-13: Optional Standard Mileage Rates

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Your Weekly Tax Tip

Tue, 17 May 2022 20:32:30 GMT

A Tax Nightmare on Your Horizon

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Toss This. Not That. | Weekly Tax Tip

Mon, 04 Apr 2022 21:07:46 GMT

Toss This. Not That.

Your guide to post tax-filing record retention .

B efore you close this year's tax file there is still some work to do. If the IRS or state revenue department selects your return for review, you will need to be prepared. Here is what you need to do now:

Keep a copy of your Form 1040 indefinitely. Do not toss or destroy any of your 1040s. You may need them to correct historic Social Security earnings statements or to prove that you filed a tax return.
Supporting documents need to be retained for three years. Records to support your tax return (i.e., W-2s, 1099s, K-1s, receipts, canceled checks, bank statements and mileage logs) should be kept for a minimum of three years from the later of the tax filing due date, the date you filed your taxes, or the date you paid your tax in full. This approach ensures that your records are available for a potential IRS audit.
Property and investment records need to be held longer. To prove your cost/basis and taxable gain or loss, all records relating to property that you own (your home, rental properties, stocks bonds and other investments) need to be kept for at least three years after it's sold or disposed.
Be mindful of other record retention requirements. The three-year period is the federal guidance for standard returns. There are other factors that should be considered, including:

State record retention requirements (often six months to one year longer)
Requirements for insurance, banking or estate management
Additional federal requirements for tax returns including unreported income (six years), worthless securities (seven years) or bad debt (seven years)
No audit time limit for fraudulent returns

A specific filing system is not required, but organization is key. The ability to easily find your documents in the event of an audit will make the process much simpler. Here are some tips:

File records by year rather than income or deduction type.
Within the file, order your records to match the flow of the Form 1040.
Consider scanning your files to create a digital file as a backup.
Create 2022 files now to save documents for current year.
Shred old documents; don't just throw them away.

If you are unsure whether to retain or shred something, keep it unless you know the document can be replaced.

Edward C. David & Company CPAs PLLC

PO Box 925
Hampstead, NH 03841
Phone: 603-893-0594
info@edcpas.com

QuickBooks Online new features and improvements—March 2022

Mon, 04 Apr 2022 20:54:17 GMT

What’s new in QuickBooks On-line for March

QuickBooks Online new features and improvements—March 2022

FIRM OF THE FUTURE TEAM MARCH 24, 2022

We’re hoping to put a spring in your step during the busy tax season with these QuickBooks® product updates and improvements.

New! Share QuickBooks updates with your clients—send them this link for QuickBooks Innovations.

What’s new in March

QuickBooks Business Network is almost here

Automate recurring payments in QuickBooks Online

Work from anywhere with cloud access to QuickBooks Enterprise

QuickBooks Business Network is almost here

In a nutshell: The QuickBooks Business Network is a new service for QuickBooks Online customers to connect with the QuickBooks community. It is designed to help you and your clients conduct business with their customers and vendors more smoothly by streamlining their workflow with automation tools. You’ll be able to partner with QuickBooks certified vendors, automatically import bills, predict your cash flow, and more.

The benefits include the following:

Join a community – Search for businesses that use QuickBooks Online without manually entering their contact information.
Get QuickBooks accuracy – We want to help facilitate time-consuming administrative tasks, such as tracking down accurate contact information, to create a hassle-free business management experience.
Safe and secure – QuickBooks takes security and privacy seriously, and will not share your or your client’s business contact information with anyone outside of QuickBooks.
Integrated accounts payable automation – Sending an invoice to another network member will automatically create a bill for them in their QuickBooks account, ready for their review and approval. They’ll also receive in-product bill alerts to remind them to take action.

The QuickBooks Business Network and its associated features have started rolling out in phases to accountants and their small business clients. All U.S. accountants will have access in summer 2022.

*This information is intended to outline our general product direction, but represents no obligation and should not be relied on in making a purchasing decision.

Automate recurring payments in QuickBooks Online

In a nutshell: If you have customers who need to invoice every day, week, month, or year, they can set up recurring payments with the autopay and schedule pay options to save time and ensure they get paid on time, every time.

Autopay – Schedule invoices in advance and let your customers set up automatic online payments.

Schedule pay – Let customers schedule future payments on your invoices.

How to set up recurring invoices with autopay and schedule pay

Create a new invoice.
Select “create recurring invoice.”
Schedule preferred frequency.
Autopay and schedule pay options will appear on payment screen.

Work from anywhere with cloud access to QuickBooks Enterprise

In a nutshell: We’ve all been exploring newer ways to work efficiently while being remote, especially during the pandemic. Did you know that QuickBooks Enterprise can help you enhance collaboration and visibility by allowing your clients’ employees and customers to work simultaneously in a secure hosted environment anywhere, anytime?

Through QuickBooks Enterprise, businesses can continue your essential accounting processes such as bill pay, reconciliation, and paying invoices, even when teams are working remotely.

Automatic backups performed on a nightly basis and retained for 90 days.
Storage ranging from 5, 10, and 50 GB.
Multi-factor authentication.
Remote access to Microsoft Office Suite and Google Chrome.
Remote access to apps, including Bill.com, Expensify, Tallie, Avalara, Dext, Qvinci, and Fathom (depending on the plan).
Unlimited access to all 250+ apps in the Right Networks (RN) library (depending on the plan).

Learn more about how QuickBooks Enterprise can work for your business. Customers with an existing QuickBooks Enterprise subscription are eligible for 30% off standalone cloud access through 5/14/2022. Call 844-848-0429 to take advantage of this limited-time offer.

IRS Issue Number: Tax Tip 2022-48

Tue, 29 Mar 2022 16:15:08 GMT

#IRSTaxTip: Tips to help taxpayers hire a reputable tax preparer. https://go.usa.gov/xz7Wp

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IRS Issue Number: Tax Tip 2022-45

Tue, 29 Mar 2022 16:11:59 GMT

Here are the different ways people can pay their federal taxes https://go.usa.gov/xzEdK

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IRS Update Issue Number: 2022-12

Tue, 29 Mar 2022 16:02:00 GMT

Electronic Filing of Tax Refunds and Payments

IRS Statements and Announcements

IR-2022-63, March 22, 2022

WASHINGTON ― The Internal Revenue Service today reminded taxpayers who have a tax bill that there are several ways to make payments, and there are options for many people who can't pay their tax bill in full by April tax deadline.

The deadline to submit 2021 tax returns or an extension to file and pay tax owed this year falls on April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states. Some taxpayers who were victims of a natural disaster have even longer to file their returns.

The IRS reminds people to timely file their tax return and pay whatever they can by the filing deadline to avoid late filing and interest penalties.

Taxpayers can use their Online Account to securely see important information when preparing to file their tax return or following up on balances or notices. Taxpayers can make a same-day payment for a 2021 tax return balance, an extension to file, or estimated taxes, which are all due by April deadline for most taxpayers. They can also view:

Their Adjusted Gross Income, Economic Impact Payment amounts and advance Child Tax Credit payment amounts needed for their 2021 return,
Payment history and any scheduled or pending payments,
Payment plan details and
Digital copies of select notices from the IRS.

Ways to pay

Electronic Funds Withdrawal (EFW) : This option allows taxpayers to file and pay electronically from their bank account when using tax preparation software or a tax professional. This option is free and only available when electronically filing a tax return.
Direct Pay : Direct Pay is free and allows taxpayers to securely pay their federal taxes directly from their checking or savings account without any fees or preregistration. Taxpayers can schedule payments up to 365 days in advance. After submitting a payment through Direct Pay, taxpayers will receive immediate confirmation.
Electronic Federal Tax Payment System : This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can call 800-555-4477 , or visit eftps.gov .
Credit card, debit card or digital wallet : Individuals can pay online, by phone or with a mobile device through any of the authorized payment processors. The processor charges a fee. The IRS doesn't receive any fees for these payments. Authorized card processors and phone numbers are available at IRS.gov/payments .
Cash: For taxpayers who prefer to pay in cash, the IRS offers a way to pay taxes at one of its Cash Processing Companies at participating retail stores. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, are at IRS.gov/paywithcash .
Check or Money Order : Payments made by check or money order should be made payable to the "United States Treasury." To help ensure that the payment gets credited promptly, taxpayers should also enclose a Form 1040-V PDF payment voucher and print on the front of the check or money order: "2021 Form 1040"; name; address; daytime phone number; and Social Security number.

File by April 18, 2022 for most taxpayers

The most important thing everyone with a tax bill should do is file a return by the April 18 due date, for most taxpayers (even if they can't pay in full). Taxpayers may also request a six-month extension to file by October 17, 2022, to avoid penalties and interest for failing to file on time .

Though automatic tax-filing extensions are available to anyone who wants one, these extensions don't change the payment deadline. It is not an extension to pay. Visit IRS.gov/extensions for details.

Usually anyone who owes tax and waits until after that date to file will be charged a late-filing penalty of 5% per month. So, if a tax return is complete, filing it by April 18 is always less costly, even if the full amount due can't be paid on time.

IRS Free File is an easy, quick way to file that is available to eligible individuals and families who earned $73,000 or less in 2021. IRS Free File is available on IRS.gov.

Pay what you can

Interest, plus the late-payment penalty, will apply to any payments made after April 18. Making a payment, even a partial payment, will help limit penalty and interest charges. The fastest and easiest way to pay a personal tax bill is with Direct Pay , available only on IRS.gov. For a rundown of other payment options, visit IRS.gov/payments .

The IRS urges taxpayers to first consider other options for payment, including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge under federal law. Normally, the late-payment penalty is one-half-of-one percent (0.5%) per month. The interest rate, adjusted quarterly, is currently 3% per year, compounded daily.

If a loan isn't possible, the IRS can often help.

Online payment plans

Most individual taxpayers qualify to set up an online payment plan with the IRS, and it only takes a few minutes to apply. Applicants are notified immediately if their request is approved. No need to call or write to the IRS. The IRS notes that online payment plans are processed more quickly than requests submitted with electronically-filed tax returns. If a taxpayer just filed their return and knows that they'll owe a balance, they may be able to set up a payment plan online before they even receive a notice or bill.

There are two main types of online payment plans:

Short-term payment plan – The payment period is 180 days or less and the total amount owed is less than $100,000 in combined tax, penalties and interest. There's no fee for setting one up, though interest and the late-payment penalty continue to accrue.
Long-term payment plan – Payments are made monthly, and the amount owed must be less than $50,000 in combined tax, penalties and interest. If the IRS approves a long-term payment plan, also known as an installment agreement, a setup fee normally applies. But low-income taxpayers may qualify to have the fee waived or reimbursed. In addition, for anyone who filed their return on time, the late-payment penalty rate is cut in half while an installment agreement is in effect. This means that the penalty accrues at the rate of one-quarter-of-one percent (0.25%) per month, instead of the usual one-half-of-one percent (0.5%) per month.

Taxpayers who do not qualify for an online payment agreement may still be able to arrange to pay in installments. See Additional Information on Payment Plans for more information.

Other payment options

Some struggling taxpayers may also consider using these other payment options:

Delayed collection

If the IRS determines a taxpayer is unable to pay, it may delay collection until their financial condition improves. However, the total amount owed will still increase because penalties and interest are charged until paid in full. Taxpayers can request a delay by calling the phone number on their notice or 800-829-1040 .

Penalty relief

Some taxpayers qualify to have their late-filing or late-payment penalties reduced or eliminated. This can be done on a case-by-case basis, based on reasonable cause . Alternatively, where a taxpayer has a history of compliance, the IRS can typically provide relief under the First Time Abatement program. Visit IRS.gov/penaltyrelief for details.

Offer in Compromise

Some taxpayers qualify to settle their tax bill for less than the full amount due, through an offer in compromise. Though there is typically a $205 non-refundable application fee, it is generally waived for low-income taxpayers and for offers based on doubt as to liability. The Offer in Compromise Pre-Qualifier tool can help determine eligibility for anyone interested in applying.

The IRS reminds taxpayers that they have rights and protections throughout the collection process. For details, see Taxpayer Bill of Rights and Publication 1, Your Rights as a Taxpayer PDF .

For more information about payments, see Topic No. 202, Tax Payment Options , on IRS.gov.

Taxpayers should know before they owe. The IRS encourages all taxpayers to check their withholding with the IRS Tax Withholding Estimator .

This news release is part of a series called the Tax Time Guide , a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax .

IRS Free File available; important tax benefits

Sun, 20 Feb 2022 22:25:41 GMT

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Topic No. 305 Recordkeeping

Tue, 25 Jan 2022 15:59:13 GMT

Help Your Business Be Prepared For This Tax Season With Help From The IRS.

Topic No. 305 Recordkeeping

Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination or if you receive an IRS notice.

You must keep records, such as receipts, canceled checks, and other documents that support an item of income, a deduction, or a credit appearing on a return as long as they may become material in the administration of any provision of the Internal Revenue Code, which generally will be until the period of limitations expires for that return.

Period of limitations for assessment of tax:

3 years - For assessment of tax you owe, this period is generally 3 years from the date you filed the return. Returns filed before the due date are treated as filed on the due date.
No limit - There's no period of limitations to assess tax when you file a fraudulent return or when you don't file a return.
6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it’s attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.

Period of limitations for refund claims:

The later of 3 years or 2 years after tax was paid - For filing a claim for credit or refund, the period to make the claim generally is 3 years from the date you filed the original return (or the due date for filing the return if you filed the return before that date) or 2 years from the date the tax was paid, whichever is later.
7 years - For filing a claim for an overpayment resulting from a bad debt deduction or a loss from worthless securities, the time to make the claim is 7 years from when the return was due.

Property Records:

Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. You must keep these records to figure your basis for computing gain or loss when you sell or otherwise dispose of the property.

Healthcare Insurance:

You should keep records of your own and your family members' health care insurance coverage. If you're claiming the premium tax credit , you'll need information about any advance credit payments you received through the Health Insurance Marketplace and the premiums you paid.

Business Income and Expenses:

If you're in business, there's not a required method of bookkeeping you must use. However, you must use a method that clearly and accurately reflects your gross income and expenses. The records should substantiate both your income and expenses. If you have employees , you must keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later.

Additional Resources:

U.S Department of Labor News

Wed, 19 Jan 2022 14:18:53 GMT

Tip Regulations under the Fair Labor Standards Act (FLSA)

On September 23, 2021, the U.S Department of Labor announced publication of a final rule ( Tips CMP final rule ). Consistent with the Consolidated Appropriations Act of 2018, the final rule restores the department’s ability to assess civil money penalties (CMPs) of up to $1,100 per violation against employers who take tips earned by their employees, regardless of whether those violations are repeated or willful. The revision further aligns the Department’s regulations with applicable precedent and how the department actually litigates willfulness and provides improved guidance on circumstances where employers’ conduct may be willful.

Additionally, the final rule modifies regulatory provisions adopted in the 2020 Tip final rule addressing managers and supervisors. This final rule clarifies that while managers or supervisors may not receive tips from mandatory tip pools, managers and supervisors are not prohibited from contributing tips to eligible employees in such pools.

The final rule withdraws two portions of the 2020 Tip final rule related to the assessment of Civil Money Penalties (CMPs) and finalizes proposed changes to those portions of the 2020 Tip final rule.

The final rule becomes effective November 23, 2021.

CMPs represent an important equalizer in the economy by helping to ensure fair competition for responsible employers.

The Tips CMP final rule emphasizes that managers and supervisors cannot keep employees’ tips. Tipped workers who play an essential role during the pandemic and the economic recovery count on the tips they receive from customers who reward them for their hard work.

The Wage and Hour Division will assess CMPs for employer violations as appropriate. We focus our efforts on proactive compliance, delivering education, outreach, and compliance assistance to provide employers the information and tools they need to comply with the law. Our enforcement efforts, including the assessment of CMPs, incentivize employers to comply with the law, and allow us to send a clear message when employers violate the law.

For more information about the FLSA or other laws it enforces, visit the Wage and Hour Division , or call toll-free 1-866-4US-WAGE.

Tax Tip 2021-136

Wed, 12 Jan 2022 13:37:12 GMT

Issue Number: Tax Tip 2021-136

Small business owners should see if they qualify for the home office deduction.

Many Americans have been working from home due to the pandemic, but only certain people will qualify to claim the home office deduction . This deduction allows qualifying taxpayers to deduct certain home expenses on their tax return when they file their 2021 tax return next year.

Here are some things to help taxpayers understand the home office deduction and whether they can claim it:

· Employees are not eligible to claim the home office deduction.

· The home office deduction, reported on Form 8829 , is available to both homeowners and renters.

· There are certain expenses taxpayers can deduct. They include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.

· Taxpayers must meet specific requirements to claim home expenses as a deduction. Even then, the deductible amount of these types of expenses may be limited.

· The term "home" for purposes of this deduction:

o Includes a house, apartment, condominium, mobile home, boat or similar property which provide basic living accommodations.

o A separate structure on the property such as an unattached garage, studio, barn or greenhouse.

o § Any portion of a home used exclusively as a hotel, motel, inn or similar establishment does NOT qualify as a “home” and, therefore, does not qualify for a home office deduction.

· Generally, there are two basic requirements for the taxpayer's home to qualify as a deduction:

o There must be exclusive use of a portion of the home for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.

o The home must be the taxpayer's principal place of business. A taxpayer can also meet this requirement if administrative or management activities are conducted at the home and there is no other location to perform these duties. Therefore, someone who conducts business outside of their home but also uses their home to conduct business may still qualify for a home office deduction.

o § A portion of a home that is used exclusively for conducting business on a regular basis but not used as the principal place of business, will qualify for a home office deduction if either patients, clients or customers are met in the home or there is a separate structure that is used exclusively for conducting business on a regular basis.

· Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:

o Using the simplified method consisting of a rate of $5 per square foot for business use of the home which is limited to a maximum size of 300 square feet and a maximum deduction $1,500.

o Using the regular method whereby deductions for a home office are based on the percentage of the home devoted to business use. Any use a whole room or part of a room for conducting their business will involve figuring out the percentage of the home used for business activities to deduct indirect expenses. Direct expenses are deducted in full.

More information:
Publication 587 , Business Use of Your Home, Including Use by Daycare Providers

Share this tip on social media -- Small business owners should see if they qualify for the home office deduction.

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Everything you wanted to know about Landed Costs in QuickBooks Enterprise

Fri, 12 Nov 2021 11:00:00 GMT

Until QuickBooks Enterprise 2020, Landed Cost was just a dream, but now it’s a reality.

With complex inventory, the value of the inventory is much more than just the cost of the raw materials. If you are only tracking the material cost of your product, you could be missing some very key costs and not be charging your customers enough for the goods that you are providing for them. This is very important for your pricing strategy and protecting your bottom line.

Landed Cost is the total or true cost of the product or shipment of products by the time it is delivered to the consumer. The items that make up the true cost are raw materials, shipping and freight charges, and any extra fees for tarping, drayage, lumpers, weight tickets, customs, duties, taxes, tariffs, insurance, currency conversion, packaging, handling, and payment fees. Although this is a full list, there are other items that your company could experience that make up part of the Landed Cost.

Previously, a landed cost calculation was not available inside of QuickBooks Enterprise. If you needed the landed cost, then you had to go through a few very painful steps to make your inventory valuation true and complete – a process that was very manual.

In order to set up Landed Cost in QuickBooks Enterprise, you will need to do the following steps:

Turn on Advanced Inventory Preference

This process will create a Landed Cost Account as an Other Asset on the Chart of Accounts.

Set up Other Items on the Item List

Add in New Items for tracking Landed Cost and Assign the Expense Account to the new Landed Cost Account. The new Other Charge Items that are set up can then be distributed to the inventory based on quantity, value, weight, or volume.

To do this, follow these steps:

Now, you’ll need to add it to the landed cost account:

Using Landed Cost features

Enter in Bill for Inventory as you normally would. Enter in the Extra Cost Items, making sure to use the new Other Charge Items. Note: I like to set up the Landed Cost Item with the name LC – in front of them, so that I can tell the normal freight to hit COGS automatically and the LC – freight, which will be distributed across the inventory value. You will never use the LC – Items in a sales transaction.

Allocate Landed Cost

Choose the bill that you need to allocate the items for landed cost. Below, you will find the items that have not yet been allocated; once they are allocated, they will fall off of the list.

Select the way to allocate the cost: Quantity, Percentage, Amount, or Manually:

Update Sales Price on Items, based on new Landed Cost:

Reviewing Landed Cost Allocation on bills

Once a bill has an allocated Landed Cost included, then you will see additional columns of the allocated expenses, original cost, and the new landed cost.

Landed Cost is a complex calculation that you would not want to track or allocate manually. QuickBooks Enterprise will now allow you to track and allocate those costs without complex Journal Entries or the need for a way to track what has and has not been allocated.

The post Everything you wanted to know about Landed Costs in QuickBooks Enterprise appeared first on QuickBooks .

Advantages of using QuickBooks Time make timekeeping more efficient

Mon, 08 Nov 2021 11:00:00 GMT

Being able to see where time is allocated for client work is crucial – and many times, a standard timesheet isn’t enough.

QuickBooks® Time (QB Time) can be used in QuickBooks Desktop, QuickBooks Online, or on its own, as a way to capture time against a project. It’s easy to run reports to see how many hours were worked on a project – and it’s easy to start using QB Time by adding projects in QB Time or syncing with QuickBooks. This allows you to onboard team members so that they can access the QB Time application instead of QuickBooks.

We have had clients come to us with questions on how to keep up with hours worked against a client project or job, in order to provide more detail than just a standard timesheet would show. QB Time allows the dispatcher to add to the schedule, where they can either choose the client/job that is needing work or add a new client so that they can dispatch a notice to the employee that will let them know they have additional work and where this work needs to be done. There is also room for notes to provide additional information to the employee on what work needs to be done or special instructions. This also allows for pictures and notes from the employee once work has been completed, all kept at the job level to show that the work has been completed.

The GPS option is also beneficial if the client needs to see where employees are working, helping determine proximity to new work being sent out, or making sure that the employees are where they should be. Since there is a way to establish a hierarchy of approvals, the team leads or supervisors can ensure that their teams are working in the correct area and make sure that they are clocked into the jobs.

By using the application notifications, reminders can be set up to send a notification as a reminder that it’s time to clock in for the day or clock out. QB Time also allows for approvals of time to ensure that each employee is accurately reporting their time. Since QB Time can sync to QuickBooks, there isn’t a need for additional access to users in QuickBooks because once they do their time approvals, it can flow into QuickBooks.

QB Time is a great fit because it allows each employee a way to clock in from their phone and set up reminders to let the employee know when to clock in or out, even for lunch. In addition, a scheduling board can be used to dispatch employees to different jobs. If the employee is using the app on their phone or tablet, they can receive notifications on those devices, letting them know that they have additional jobs to complete.

I encourage you to try using QB Time in your business. In addition to tracking time, you’ll be amazed at how much more productive you’ll be.

The post Advantages of using QuickBooks Time make timekeeping more efficient appeared first on QuickBooks .

How choosing the right business software can help you

Fri, 05 Nov 2021 10:00:00 GMT

Every business in today’s tech-dominated business landscape needs stellar business management software in order to remain competitive. Gone are the days when paperwork and excel spreadsheets were fashionable. Digital tools and software have taken over business operations and revolutionized business management as we knew it.

For example, you now need management software for effective client, staff, and inventory management. To optimize the benefits of your business software, you must start by choosing the right software for your industry, specific niche, and unique business needs. Let’s expound a little on this:

The benefits of choosing the right business Software

1. Good software improves the organizational management of your projects

As a business owner or manager, one thing you cannot run away from is project management. There are times when you have multiple projects running concurrently, or one project is too complex for you, or both. With the right project management software, you have the logistical asset needed to break down complex projects into manageable, easy-to-understand, and specific task segments. It enables you to keep track of the bigger picture, even as you manage the short-term objectives. That’s a great efficiency and productivity booster for both you and your team.

Good business software will help you keep track of every resource in each business deal you venture into, including human resources. It will notify you of wastage and excesses in resource management, ensuring that your projects stay within the set budget and that every resource is utilized towards the timely completion of each task. It keeps track of every little detail that could be important to the completion of a project, so that nothing falls through the cracks.

What’s more, good software will give you the option of roping in the clients, so that they can follow the progress of their projects in real-time. This boosts the confidence they have in your company’s ability to deliver optimally, which is a great reputation to have.

2. Fueling sales pipeline

Good business management software allows users to follow up on business leads, while also collecting and analyzing customer data. That includes data such as what the target customer wants, where they live and shop, the market pain points that your industry hasn’t solved satisfactorily, and where you’re failing as a company. This data is invaluable when it comes to generating sales, improving customer satisfaction and experience, and fueling your sales pipeline.

A good software system allows you to follow up sales right from lead generation to the eventual conversion. In the process, you get the invaluable insights you need when supporting your sales teams for optimal conversions. You are able to analyze crucial employee performance data fast and accurately, so that you only invest in teams that actually help your ROI .

On top of fuelling sales in your existing market, a good software system can be invaluable to your business expansion plans. The data it collects and analyzes can point you in the right direction for expansion, as well as the right sales channels to pursue. It will highlight the sections of the market where you can cross-sell and/or upsell with a significantly high probability of success.

3. Enables effective and efficient communication

In the business world, communication can either be internal (with employees) or external (with clients). Good communication is invaluable in both cases.

Effective and efficient internal communication leads to better teamwork and enhanced interdepartmental collaboration, while also eliminating the need for you or your team leaders to micromanage junior employees because everyone knows what they need to do and when to do it. Good communication is also a key to better employee management, employee satisfaction, and increased employee retention.

Think of communication software like Skype or Slack. These tools have made flexible and remote working possible. You now can hire employees from any part of the world, and team members will still collaborate effectively, regardless of their location. Other communication solutions, such as remote simultaneous interpretation, have helped businesses hire and effectively manage multilingual and multicultural teams. Diversity in your team is one way of attracting a diverse clientele and improving your brand reputation.

Effective and efficient external communication has many perks, too. For starters, it helps businesses to perfect their brand messaging. Your competitors are advertising on every platform that you intend to advertise on, so you must package your messaging differently if you are to stand out. Good communication software will help you rise above the marketing noise and appeal directly to your target customer. It will collect and store important customer data, such as birthdays, physical address, and contacts, which you can use to customize your messaging.

4. Better cash management

As a business leader, you need to be transparent and accountable when managing cash and other company resources. Your team members also need to be accountable and honest with the resources put under their care. That’s key to business growth. A good cash management software system provides a foolproof payment gateway that’s beneficial to both the business and its clients.

As a business, you benefit because pre-service payments minimize no-shows and give you leeway for upselling your services. The software makes it easy for you to follow cash flows and seal cash-embezzlement loopholes. And, since it’s a form of contactless payment, a good cash management system eliminates the need for your cashiers to keep sanitizing money all day, especially now that COVID-19 is still around.

We can’t speak of cash management without mentioning the need for good accounting and bookkeeping software. As a business leader, you need to understand the basics of taxation, payroll, accounting, and bookkeeping – even if you don’t have a background in finance. Good bookkeeping, accounting, payroll, and taxation software will break down complex finance mechanics for a layman to understand. That’s what you need for a smooth and uninhibited business operation.

5. Improved time management

Time is an invaluable resource in business. That’s why businesses invest in a time-tracking software. The right software will enhance effective time management in your office by quantifying the time used for every task. It tells you which tasks are taking longer to complete than they should, and which tweaks are needed to improve efficiency in that regard. It will analyze the time that specific workers or groups take to complete assignments, and how you can help them improve.

Making the right software choice for you

How do you get the right software for your business? Well, there is no “silver bullet” answer to this question because it comes down to what challenges you want to solve, and which tools would help your employees perform better. The bottom line is to always go for software that streamlines your business functions, gives you value for money, and is scalable enough to accommodate future growth.

The post How choosing the right business software can help you appeared first on QuickBooks .

Introducing QuickBooks Time

Mon, 18 Oct 2021 16:45:04 GMT

Learn about QuickBooks Time and other new changes in QuickBooks:

QuickBooks Online Advanced adding Excel integration

Tue, 28 Sep 2021 13:00:00 GMT

More than 60% of mid-sized customers use Excel as a tool in managing their business. Customers are typically forced to manually transfer data back and forth from Excel to their other financial business tools.

Not on Intuit’s watch.

Planned for early 2022, QuickBooks® Online Advanced will offer two-way syncing with Excel to help businesses simplify and scale their operations, while reducing errors. This important integration will be made possible through a technology acquisition from DataDear.

Comprehensive reporting that is accurate, convenient, and provides actionable insights is essential to fueling a business’ success. Customers will be able to automatically sync data between Excel and QuickBooks Online Advanced. This much-requested capability will help businesses save time and further streamline data syncing at critical points in their business journey, whether they’re adopting accounting software or seeking enhanced reporting that delivers greater visibility into their operations. Customers will be able to build custom reports, in a tool they already use, without compromising on convenience or accuracy of data.

“We’re thrilled to deliver another powerful integration that meets the unique needs of mid-sized businesses,” said Alex Chriss, executive vice president and general manager of QuickBooks. “Further reducing complex workflows through automation, coupled with powerful customization capabilities, will enhance performance and scalability, and allow businesses at a critical point in their journey to reach a new level of growth.”

This feature integration further expands QuickBooks Online Advanced’s ability to serve as the source of truth, and a singular financial and business hub for mid-market businesses. It follows the addition of several best-in-class premium apps and purpose-built integrations to QuickBooks Online Advanced, including DocuSign, Bill.com, HubSpot, and LeanLaw.

The post QuickBooks Online Advanced adding Excel integration appeared first on QuickBooks .

Automating pricing in QuickBooks: Quantity Discounts

Tue, 07 Sep 2021 17:52:00 GMT

In a previous article , we touched on how the right pricing is critical for all businesses. Just a small move in price strategy can significantly impact operating profits – and businesses can control, customize, and automate pricing with ease in the Platinum and Diamond editions of QuickBooks® Desktop Enterprise . This includes the ability to offer quantity discounts, manufacturer markdowns, scheduled promotions, and custom pricing by class, among several other ways. This is all possible using the Advanced Pricing module, included with all QuickBooks Enterprise Platinum and Diamond subscriptions.

Let’s dig deeper into Quantity Discounts.

With Quantity Discounts, QuickBooks automatically changes the prices of items on sales forms, according to the quantity breaks you create. This is a key benefit of Advanced Pricing – the ability to trigger discounts based on exact desired volume or quantities – popularly known as “quantity price breaks.” For example, QuickBooks can automatically adjust prices on sales forms when a customer buys 10 to 19 items, 20 to 29 items, or 30 or more items.

To apply Quantity Discounts using Advanced Pricing, you need to first enable Advanced Pricing:

Note that Quantity Discounts are set on an individual item basis, rather than on a global basis – which is how Price Rules are designed. To set up Quantity Discount conditions:

A word of caution: QuickBooks Advanced Pricing uses the total quantity per line item when applying quantity discounts, instead of the total quantity of an item on the total sales form. So, when an item appears on more than one line of a single sales form, QuickBooks does not combine the quantities of that item across all lines and apply the quantity discount rule. Essentially, you want to ensure that multiple quantities of the same items are entered on no more than a single line on a sales transaction.

This may be particularly challenging when you have Advanced Inventory enabled and are tracking multiple inventory sites or bin locations. For example, a quantity discount of 10% is offered when a customer purchases 10 or more widgets; if five widgets come from one inventory site and five more come from a different site, the widgets will appear on the sales form as two line items. In this case, QuickBooks will not automatically apply the 10% discount rule, even though the total quantity of widgets on the sales form is 10 and should qualify for the discount. In such a case, because the items are split across multiple lines on the sales form, the discount will have to be entered manually.

Note that Advanced Inventory is another feature of QuickBooks Enterprise Platinum and Diamond, and it does not require Advanced Pricing to be enabled.

As long as you know this rule about keeping any one item to a single line on sales forms, you can use Quantity Discounts to efficiently trigger price breaks based on predetermined quantities with ease. This can be very useful as incentives for customers to buy in bulk or larger quantities.

With Advanced Pricing in QuickBooks Desktop Enterprise, you can automate complex and repetitive pricing rules and automatic quantity price discounts quickly and easily.

The post Automating pricing in QuickBooks: Quantity Discounts appeared first on QuickBooks .

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Small business owners should see if they qualify for the home office deduction.

Everything you wanted to know about Landed Costs in QuickBooks Enterprise

Turn on Advanced Inventory Preference

Set up Other Items on the Item List

Using Landed Cost features

Allocate Landed Cost

Reviewing Landed Cost Allocation on bills

Advantages of using QuickBooks Time make timekeeping more efficient

How choosing the right business software can help you

The benefits of choosing the right business Software

1. Good software improves the organizational management of your projects

2. Fueling sales pipeline

3. Enables effective and efficient communication

4. Better cash management

5. Improved time management

Making the right software choice for you

Introducing QuickBooks Time

QuickBooks Online Advanced adding Excel integration

Automating pricing in QuickBooks: Quantity Discounts

Topic No. 305 Recordkeeping