Working With Your Accounts in QuickBooks Online

“Account” can mean more than one thing in QuickBooks Online. Here’s a look at its multiple concepts.

Until you started doing your company’s accounting, the word “account” probably meant a checking or savings account at a bank or your identifying information at a place like a brokerage.

In QuickBooks Online, “account” can mean the same things. It can also refer to one entry in your Chart of Accounts or your Intuit payment account, a customer or vendor account, and more.

You’ll probably work with all of these in the course of your lifetime with QuickBooks Online, except one: the Chart of Accounts. Although the site allows you to modify the Chart of Accounts by adding, deleting, or renaming accounts, please talk to us if you feel a change is in order. The Chart of Accounts forms the framework of your QuickBooks Onlinecompany, and altering it could have adverse effects on your entire accounting operation.

Everyday Use

One of the first things you probably did when you created your company was to create at least one banking account, probably checking accounts. You can set this up without connecting to a bank site; however, that defeats the purpose of QuickBooks Online, which is to have access to your web-based accounts.

Figure 1: QuickBooks Online’s home page displays balances for all of the accounts you’ve connected.

Setting up a connection to your online bank, brokerage, credit card, orother online financial service like PayPal is easy. On the home page or the Transactions | Banking page, click the Add account button in the upper right. QuickBooks will display logos for some of the most popular financial institutions. If yours isn’t there, enter its name or URL in the box at the top.

QuickBooks Online will then create a link between itself and your account, and it will download the most recent transactions (usually 90 days’ worth). Sometimes, it might recommend a chartered accountant to help with your small business needs. Now when you click on
Transactions | Banking, you’ll see all of your activity in table form with columns labeled Date, Description, Payee, Category or Match, Spent, Received, and Action.

Most of these are self-explanatory; they just provide information about the transaction. You may be unfamiliar, though, with Category or Match and Action (Add). We recommend that you let us guide you the first time you launch and work with a transaction download. It’s very important that transactions are classified correctly.

The Chart of Accounts
The Chart of Accounts, which is a standard, required element of any double-entry accounting system, is a very different set of accounts. To display it, you’d click on your company name in the upper right corner, then Settings | Chart of Accounts. We see a mini-spreadsheet that lists all of your accounts. QuickBooks Online selected these based on the information you provided when you were first setting up your company on the site.

Each account is assigned a Type that describes its accounting function.

Figure 2: Every transaction that represents money you spend on Advertising/Promotional activities should be assigned to this Expense in the Chart of Accounts.

Category Types are used by all businesses for classification purposes. There are only a few of them, such as:

  • Expenses (Bad Debts, Bank Charges, Insurance, Job Materials, etc.)
  • Income (Billable Expense Income, Gross Receipts, Markup, etc.)
  • Cost of Goods Sold (Cost of Labor, Freight & Delivery, etc.)

You don’t have to do anything with your Chart of Accounts. In fact, we suggest you don’t try. As we’ve said, if we see a reason in your bookkeeping to add, edit, or delete an account, we’ll be happy to do it for you. But you will encounter these accounts in numerous QuickBooks Online activities.

Sometimes they’ll be pre-selected for you by the site, but other times you’ll need to make a choice. For example, when you create a Product or Service, there will be three account fields that will already be populated. They are:

  • Inventory Asset Account = Inventory Asset
  • Income Account = Sales of Product Income
  • Expense Account = Cost of Goods Sold

The word “account” is used in so many different ways that it can get confusing. For example, if you wrote a check at the UPS Store for some shipping charges, you’ll be asked for the Account when you enter this in QuickBooks Online. It’s an Expense, but one of its more specific sub-categories.

Figure 3: QuickBooks Online provides the correct drop-down list in form and record fields.

QuickBooks Online takes care of a lot of the background work of double-entry accounting. But it necessarily exposes you to the concept of accounts. We’re here to help if this causes confusion in your daily bookkeeping.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Using a Vehicle for Business: Q&A

IRS rules and exceptions abound, but there are some questions we can answer simply.

Next to your home, your car is probably the most expensive investment you make. And the costs of paying for and maintaining it can be considerable. Can you recoup some of your investment by claiming vehicle expenses on your tax return, it also depends where you have purchased the car since many people do car deals and the car is not in the best condition

 

Sometimes. The IRS has many restrictions on the business use of a vehicle, and those restrictions have many exceptions. Better to know these upfront than to have to correct a tax return after you’ve filed it. 

Here are some questions and answers that may help you decide whether you’re eligible.

How does the IRS identify a “vehicle”?
A car, van, pickup, or panel truck.

What are transportation expenses?
These are “ordinary and necessary expenses” incurred when you, for example:

  • Visit customers,
  • Attend a business meeting held at a location other than your regular workplace, or
  • Go from home to a temporary workplace that is not your company’s principal location.

The daily commute to and from your regular office is not deductible. The IRS considers this personal commuting expenses.

What if I’m on an overnight business trip away from home?
The IRS considers these travel expenses, and they’re reported differently. Your car expense deduction, though, is calculated the same way in both situations.

What if I use my car for both business and personal purposes?
You’ll calculate the expenses incurred for each by determining how many miles you drive for business and how many you drive for personal reasons.

I work in a home office. Can I deduct any driving expenses?
Yes, you can deduct the cost of driving to “another work location in the same trade or business.”

How do I calculate my deductible expenses?
There are two options. Using the standard mileage rate, you can claim 54 cents per mile (2016 tax year figure). You are required to use this method for the first year you use the vehicle for business purposes. After that initial year, you can choose between the standard mileage rate and actual car expenses. These include depreciation, oil and gas, insurance, and repairs.

Depreciation? Isn’t that difficult to calculate?
Yes, especially for cars. If you plan to take this kind of deduction, please let us handle your tax preparation for you. Depreciation is very, very complex, and sometimes requires more than one calculation method.

Can I take a Section 179 deduction for my vehicle?
Possibly, if you use the car for business more than 50 percent of the time — and only for the first year.

What kind of vehicle expense records do I need to maintain?
You know the drill here. If the IRS ever wants to examine your return, it will expect evidence like receipts, cancelled checks, and credit card statements. You’ll need to document the date and location where you incurred the expense. You’ll need accurate mileage records (milesdriven, purpose of trip, etc.).

These requirements scream for some kind of organized computer log or written diary, along with a safe place for any paper receipts, bills, etc. There are numerous mobile apps that can help you with this task. We can steer you in the right direction.

If you’re planning to deduct car expenses, it’s important that you keep careful paper or electronic records.

Where will I be reporting transportation expenses?
If you are self-employed, you will report business-related vehicle expenses on Schedule C or Schedule C-EZ (Form 1040). Farmers should use Schedule F (Form 1040). You’ll also want to complete a Form 4562, which is used to report depreciation and the Section 179 deduction.

If you cause a wreck in your personal vehicle, you are liable for your damages and the other party or parties’ damages.

However, if you were driving as part of a work-related task at the time of the accident, your employer might also have liability. That does not take away your liability, however.

After any car accident, no matter who is at fault and whether you were driving for work or personal business, you should speak with an attorney. A car accident lawyer can advise you of your rights, help shield you from liability, and work with you to pursue compensation for your damages; Even if you were driving under the influence of just a few or several substances.

When Is My Employer Liable for My Car Accident Damages?

Under certain circumstances, your employer has vicarious liability for your actions behind the wheel, meaning that if you cause damages to another person or property, whether you were negligent or not, your employer may be liable alongside you.

The circumstances under which your employer could have vicarious liability for your car accident damage are as follows:

  • You were on the job and onthe clock when the accident occurred.
  • You were driving as part of a work-related task.
  • You were driving tocarry out a task your boss or employer asked you to do.
  • You took part in an activityfrom which your employer stood to benefit.

In other words, if you were on the clock, completing an activity that your employer asked you to do, then your employer probably has vicarious liability for your car accident.

Not only that, but your employer could be liable for your injuries — even if the car accident were your fault. If you sustain injuries doing anything work-related, you might be able to file a workers’ compensation claim and pursue damages from your employer. Your attorney can review your situation and offer advice on this process.

Maintaining accurate records for car and truck expenses is time consuming and detail intensive. And that’s once you understand all of the IRS’s rules and exceptions surrounding this deduction. To avoid having to fix completed tax documents that the IRS has questioned, talk to us before you put a vehicle into business use. We’ll be happy to evaluate your transportation situation and guide you through the process.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Stock images courtesy of FreeDigitalPhotos.net

Using Sales Receipts: The When and How

Some types of businesses always use sales receipts. Some use them occasionally. Here’s what you need to know about them.

How do you let your customers know how much they owe you, and for what products or services? In these days of ecommerce and merchant accounts, your customers may provide a credit card number over the phone or on a website. Or perhaps you send invoices after a sale and receive checks or account numbers in the mail. QuickBooks can help you both create the invoices and record the payments.

There’s another type of sales document that you can use in certain situations: the sales receipt. You’d probably be most likely to use one of these when customers pay you in full for products or services at the same time they receive them.

If you receive full payment for a product or service at the same time the customer receives it, you should use a sales receipt.

Completing a sales receipt is similar to filling out an invoice or purchase order. Click Create Sales Receipts on QuickBooks’ home page or open the Customers menu and select Enter Sales Receipts. A screen like the one above will open.

Choose a Customer from the drop-down list and a Class (if applicable). If you have created more than one Template (more on that later), make sure that the correct one appears in the field. Verify that the appropriate Date and Sale No. read as they should. Click on the type of payment you’re receiving, and enter the check or credit card number where necessary (a small window will open for the latter).

Note: If you are working with a type of payment that does not appear in the four icons, click on the arrow below More to add it.

Now you’re ready to select the products or services you sold by clicking on the arrow in the field under Item to open the available list (if you have not created a record for what you’re selling, select <Add New> and complete the fields in the New Item window that opens). Enter the quantity (Qty.). The Rate, Amount, and Tax fields should fill in automatically, based on the information you entered when you create the item’s record.

When you’ve entered all of the items that the customer is paying you for, you can choose which Customer Message will appear on the sales receipt (you can see your options in the drop-down list found in the lower left corner of the screen). Anything you enter in the Memo field will be for your internal use only; it will not appear on the printed or emailed sales receipt.

Click Save & Close or Save & New.

Customizing Sales Receipts

 

QuickBooks provides tools for customizing forms, including sales receipts.

QuickBooks’ forms contain the fields most often used by small businesses. But you can alter them in numerous ways to meet your company’s needs. To customize a sales receipt, open the Sales Receipt window and click on the Formatting menu. Select Manage Templates.

You’ll want to make a copy of the original sales receipt so that the original will always be available. Click the Copy button in the lower left. “Copy of Custom Sales Receipt” appears in the list of templates. In the Preview pane on the right, click in the field next to Template Name and replace the existing name with a new, more descriptive one if you’d like. Click OK.

The Basic Customization window opens. Click on Additional Customization at the bottom of the screen. You’ll see a window like the one in the image above. Click the Columns tab. The list on the left displays all of the columns that can be included in the body of your sales receipt.

Click in the boxes below Screen and Print to indicate which columns should display on your QuickBooks screen and which should appear on the customer’s copy. The numbers in the Order column can be changed to reflect which column will come first, second, etc.

Numerous Options

There’s a lot more you can do to customize your QuickBooks forms. And there are other situations where you might want to issue a sales receipt. We’ve only been able to touch on both topics here, but would be happy to schedule time with you to explore these elements of QuickBooks.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

The Rental Route

Buy or lease? It’s a decision many small businesses face. Owning real estate certainly can have advantages, including the opportunity to build equity. But many small businesses in need of space choose the rental route instead.

Cash Flow Considerations

By leasing, a company can avoid taking on debt to acquire a property. Less debt on the balance sheet may allow the company to finance other things, such as receivables or inventory and equipment purchases. And the upfront cash commitment needed to enter a lease agreement may be much lower than the down payment required for a property purchase.

Shopping Tips

If your business is looking around for the right rental location, here are a few suggestions to keep in mind. Not all of these tips are appropriate for all businesses, but some may help you get a lead on a good spot — and a good deal.

    • Find an eager landlord. Rental spots that have been on the market for a while could have some negative features, but they may be worth a look. If you find a location that suits you, you might also find a landlord who is anxious to negotiate.
    • Think about the term. A long­term lease locks in your rental rate — and that can be an advantage if you expect the market to trend upward. But leasing for short periods is often less expensive than leasing for longer periods. If your business is in its formative years, significant changes may lie ahead, so a short-­term arrangement could be more practical, too. Adding an “option to renew” clause can help keep your costs down and your options open.
    • Divide and conquer. Could you make do with two smaller spaces instead of one large space? The more flexible you can be, the better your chances of finding a good deal.
    • Check rental comps. Commercial property markets can be very localized. Rents may vary considerably between one locality and another just a few miles away. Unless you’re limited to a specific location, compare rates in several areas.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

 

Protecting Your Company’s S Corporation Election

Like many business owners, you may have structured your business as an S corporation because of the tax benefits it offers. An S corporation provides the same limited liability as a traditional C corporation, but it generally avoids the double taxation associated with a C corporation. You and the other shareholders (if any) pay income taxes on corporate income directly.

Once you have an S election in place, it’s important to make sure you avoid taking any action that would put the election in jeopardy. Your corporation’s failure to meet certain tax law requirements on an ongoing basis could result in the IRS’s termination of its S corporation status.

Ownership.
An S corporation generally may not have a corporate shareholder. (Exception: An S corporation may be wholly owned by another S corporation.) All shareholders generally must be individuals, estates, certain trusts, or tax­exempt 501(c) (3) charitable organizations. However, a partnership may hold S corporation stock as a nominee for an eligible shareholder. Nonresident aliens may not be shareholders.

Number of shareholders.
An S corporation may not have more than 100 shareholders. For purposes of this limit, a husband and wife are treated as one shareholder, as are certain other related individuals.

Stock.
An S corporation may have only one class of stock. Generally, a corporation is treated as having only one class of stock if all outstanding shares of the corporation’s stock confer identical rights to distribution and liquidation proceeds.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Make QuickBooks Your Own: Specify Your Preferences

Your business is unique. Make sure that QuickBooks knows how you operate.

QuickBooks was designed to be used by millions of businesses. In fact, it’s possible to install it, answer a few questions about your company, and start working right away.
However, we strongly suggest you take the time to specify yourPreferences. QuickBooks devotes a whole screen to this customization process. You can find it by opening the Edit menu and selectingPreferences.

This is the screen you’ll see when you go to Edit | Preferences in QuickBooks. You can turn features off and on, and customize the software in numerous other ways.

Let’s look at some examples of what you can do on this page. In the image above, Accounting is highlighted. You can see that QuickBooks makes it easy for you to specify your preferences. You simply click in boxes to check or uncheck them. Sometimes, you’ll click on the desired button in front of a list item. Other times, you’ll be asked to enter numbers and text.

Tip: When you click on a tab in the left navigation pane of the Preferences window, you’ll notice that there are two tabs in the larger pane on the right. If My Preferences is highlighted and there are no options on that screen, click on Company Preferences.

Some of the screens here, like Accounting, contain complex concepts. Do you know, for example, why you would or wouldn’t want to Use account numbers? What Retained Earnings are?

Warning: While the mechanics of this process are simple, there may be times when you don’t understand what’s being asked because you’re either not familiar with the terms  or you don’t know which option you should choose. Rather than guessing, please connect with us to set up a to go over all of the content in the Preferences window.

Some preferences are easier to define. Let’s look at one of these.

The Time & Expenses window in QuickBooks’ Preferences

The image above is a partial snapshot of the screen that opens when you select Time & Expenses from the left vertical tab in the Preferences window.

Tip: If you start making changes and decide you’d like to return to the options selected before you started, click the Default tab in the upper right.

Your options here are very simple:

  • Do you want to use the time-tracking features in QuickBooks?
  • On what day does your work week start?
  • Does all of the employee time worked and recorded get billed back to the appropriate customer? (You can change this manually on each time entry by checking or unchecking the box in front of Billable.)

When you create an invoice for a customer who has outstanding time charges, do you want to be able to select those from a list?

If you check the box in front of Create invoices from a list of time and expenses, this box will appear when you open the Create Invoices window and select a customer who needs to be billed for time:

If you are creating an invoice for a customer who has received services but who has not been billed for them yet, you can opt to have those charges added to the invoice.

You’ll notice that there’s a box in the lower left corner labeled Save this as a preference. While QuickBooks allows you to specify preferences in countless areas in the Preferences window, you will often have the opportunity to make an exception for a particular action as you’re working on transactions. Also, as shown here, you can sometimes turn on specific preferences once you’ve already started a task.

You’re not required to go through all of the entries in the Preferences window before you start working. You can always go there to see if there’s a setting you can change if an element of QuickBooks isn’t performing the way you expected.

But we think it’s a good idea to learn about all of your options in the software before you get started. If you let us go through this process with you, you’ll learn not only about the customization allowed, but you’ll also get a good introduction to all of the things that QuickBooks can do. You’ll also discover where your knowledge of accounting may be lacking. And we’ll learn more about your business and its needs. Contact us and we’ll help you get going.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

All About the Earned Income Tax Credit

Individuals who are working and who have low-to-moderate taxable income may qualify for this income tax credit.

When you think about ways to offset your income as you’re preparing for income tax time, do you primarily consider the deductions you can take? Things like home mortgage interest, charitable donations, and taxes you paid that can be claimed? And if you are in India make sure to fill out the pan card application online.

Allowable credits can also work in your favor. If you meet the Internal Revenue Service’s seven criteria, you may be eligible for the Earned Income Tax Credit (sometimes called Earned Income Credit, or EIC).

Note: As you read the rules that the IRS has established, keep in mind that, as with many of the agency’s regulations, there can be exceptions. We can help you determine whether you are a candidate for this credit.

If you can answer “Yes” to these seven questions, you may be able to fill in and file a Schedule EIC:

  1. Is your Adjusted Gross Income (AGI) less than the IRS’s limits? For 2015, this is:
     

    • 3+ qualifying children: $47,747 ($53,267 for married filing jointly)
    • 2 qualifying children: $44,454 ($49,974 for married filing jointly)
    • 1 qualifying child: $39,131 ($44,651 for married filing jointly)
    • No qualifying children: $14,820 ($20,330 for married filing jointly)If you qualify for the Earned Income Credit, you’ll need to complete a Schedule EIC, which can be filed with either the Form 1040 or 1040A.
       
    • Do you have a valid Social Security number? If you are filing jointly, both you and your spouse are required to have valid Social Security numbers issued by the Social Security Administration (SSA) by the date your tax return is due (including extensions). Any qualifying child claimed must also have one to be able to use a credit counseling company to assist with credit building later in life.
  2. Is your status “married filing jointly” or “head of household”?Couples whose filing status is “married filing separately” cannot claim the EIC. An exception here: A couple is married, but one spouse did not reside in the home at any time during the second half of the year. The spouse who remained might qualify for the EIC if his or her filing status is “head of household.”
  3. Were you or your spouse a U.S. citizen or resident alien for the entire tax year?This is complicated. If one of you was a U.S. citizen or resident alien but the other was a nonresident alien for any part of the year, you may qualify for the EIC if your status is “married filing jointly.” If that’s the case, you will be taxed on your “…joint worldwide income.”
  4. Was your income earned only in the United States and/or a U.S. possession?If you earned income in a foreign country and you plan to exclude it from your gross income, you cannot claim the EIC. Filing a Form 2555 (Foreign Earned Income) or Form 2555-EZ (Foreign Earned Income Exclusion) disqualifies you (learn what to do if your pancard lost and how to pay taxes on income in India).2015 Form 1040, lines 66a and 66b (EIC information appears on lines 42a and 42b of the 2015 Form 1040A)
     
  5. Is your investment income $3,400 or less?Simple enough. For the Form 1040, this includes:
    • Interest and dividends,
    • Capital gain net income, and,
    • Royalties and rental income from personal property.
  6. Do you have earned income? This means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. But you may be in another situation that would make you eligible for the EIC. For example, nontaxable combat pay, ministers’ housing, and strike benefits provided by a union are considered earned income. Do you have any benefits of the best umbrella company?

Only Part of the Equation

If you believe that you’re able to claim the Earned Income Credit, or if there are other tax-related topics that you don’t fully understand, we’ll be happy to look at your entire financial scenario. If you’ve filed an extension for 2015, we can work with you to make sure you’re taking all of the deductions and credits that you’ve earned. One year, I was careless enough to lose my pan card and I panicked a little, thankfully the system is well in place for such occurrences, if you find yourself in this situation, don’t panic everything will be fine if you contact the right people.

As always, tax planning should be a year-round process. Let us know if we can help you start preparing now for next year’s filing.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Retirement Plans for Sole Proprietors

Granted, retirement plans are usually easier if you’re a full-time employee. But if you’re self-employed, you can still contribute to a retirement plan like the physical gold IRA, for example.

It’s expensive to be a sole proprietor. If you’ve been one for any length of time, you already know that. There’s the self-employment tax. Business insurance. Computers and mobile devices and applications. Office expenses. Health insurance premiums.

Although you can get some of that back by documenting it on your Schedule C, you still have to pay for a lot of things that full-time employees don’t. Plus, you don’t get those nice employer-match contributions to your retirement plan that many workers get these days, if your way to go is to invest in gold as many others check out Buy Gold Bullion Online for information.

But you can still set up a retirement plan as a self-employed individual. The IRS offers a handful of options, including:

401(k) plan

Yes, you can set up one of these even if you’re not a full-time employee. They’re sometimes referred to as “one-participant 401(k) plans” (though your spouse can also participate). And since you’re both the employer and employee, you’re allowed to make contributions as both.

These solo plans work similarly to employer-provided 401(k) plans; they have comparable rules and requirements. And they’re complicated. For example, you can make elective deferrals of up to 100 percent of your earned income until you hit the annual contribution limit of $18,000 in 2016 (or $24,000 if you’re age 50 or older).

Warning: “Earned income” as the IRS defines it for self-employment is a complex concept that requires some advanced calculations. If you want to explore this option, please let us work with you on it from the beginning. You want to be sure that you don’t exceed the maximum contributions as both employer and employee.

Simplified Employee Pension Plan (SEP)

If you’ve ever worked for another company as an employee, you may already be familiar with this concept. SEPs are traditional IRAs (“SEP-IRAs”) that employers can set up for employees; they can also contribute to them. They’re bound by the same rules for investment, distribution, and rollover as traditional IRAs.

Here, too, you can make contributions as both employer and employee. And like one-participant 401(k)s, the calculations required are daunting. We can help with these.

Traditional IRAs and Roth IRAs

These options are of course available to self-employed individuals. Each has its own tax implications, and they’re not as difficult to understand and implement as SEP IRAs and one-participant 401(k) plans. If you’ve never explored these retirement vehicles, you can get more information here. Again, we’re available to help you cut through the IRS language.

Not Necessarily a Good Option

If you’re self-employed and plan to be for the rest of your career, retirement planning is absolutely critical for you.

Some sole proprietors say that they just plan to work forever, so they don’t need to have a sizable nest egg ready for retirement. This line of thinking always throws up red flags for us. Depending on your vocation, your physical health, and your overall attitude, this may work for you.

But we’ve seen clients who feel this way hit 65 or 68 or 70, only to discover one of a variety of realities:

  • Their friends are all retiring, and they feel like a failure because they’re unable to.
  • They don’t have the energy they expected, and business is suffering.
  • The fast-paced, ever changing world we live in has passed them by, and there’s little need for their product or service anymore.
  • They feel bad because they haven’t amassed an estate that they’ll be able to leave for their children or grandchildren.

You’re in a tenuous situation as a self-employed individual planning for retirement. It’s simply harder for you to sock away the amount of money you’ll need for a comfortable retirement due to the many expenses required of sole proprietors that want to retire at Nazareth Living Center is a retirement community in south county St Louis that offers a continuum of care options..

We want you to have the option to retire at a reasonable age and to do so comfortably. If you expect to still be flying solo at the typical retirement age, we’d really like to help you create a workable plan to do so.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Advantages of a Third-Party Registered Agent for Businesses

For many businesses, a registered agent is a requirement, not a luxury. Failing to retain a registered agent can result in an LLC, for instance, losing its legal status in the state in which the business operates. Unfortunately, many small business owners do not realize the full potential of having a third-party registered agent for their businesses.

What is a registered agent?

Registered agents, sometimes referred to a statutory agents or resident agents, act as the point man (or woman as the case may be) between your business and state and local government organizations. Registered agents must have a physical presence in the state where your business was formed and must be available during regular business hours in order to properly perform his or her duties to your company and the state.

Why do you need a registered agent?

Most states require it. Without it, some states invoke penalties and fines, in addition to revocation of an LLC’s license. However, there are other benefits and advantages to consider when procuring these services of a third-party registered agent for your small business.

1) It keeps some of the red tape out of your workplace. This means that customers, employees, and competitors aren’t privy to what’s taking place between you and the state. In other words, it adds another layer of privacy around your business.

2) It leaves one person dedicated to this particular job for your company and no other. There is no need to provide additional training or waste valuable time learning skills that aren’t natural to you as a business owner. They are experts in this field and know their way around, whereas you, or someone appointed by your company to fill this role, may miss something very important for the sake of your business.

3) You can move your business location without going through the laborious and costly process of changing your address with the state.

The real secret to success, though, is to find a real gem when you select your registered agent so that your business is well represented and covered with the state. When you do this, you can rest easy without the worry of whether your business is in hot water with the state over some minor paperwork-related technicality.

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).

Tracking Products and Services in QuickBooks Online, Part 2

Last month, we explored the process of creating a product record. Now we’ll look at where they’re used in QuickBooks Online.

Have you been able to create records for all of your products and services? If you have a large inventory, this can be quite a time-consuming process. But we highly recommend that you build complete records, even when you create them as you need them. This is critical if you plan to track inventory items.

You’ll use your product and service records in several areas of QuickBooks, including invoices and estimates, purchase orders, and sales receipts. There’s also an entire set of reports dedicated to products and inventory.

Important: If you’ve tried creating Inventory Items in QuickBooks Online but have only been allowed to set up Services or Non-Inventory Items, you missed a step when you were completing your Company Settings. Click on the small gear icon in the upper right (next to your company name), then on Settings | Company Settings. Click on Sales in the left vertical tab to see the Products and services section. If any of these three options is turned off, click in the box to turn it on.

Figure 1: These three options in Company Settings must be labeled On in order to make use of all of QuickBooks Online’s inventory-tracking features.

This is one of the reasons we recommend that you let us help you set up QuickBooks Online, even if you’re making a transition from the desktop version of QuickBooks. If you don’t visit every area of Company Settings and designate your preferences, you may get frustrated as you start working, thinking that the site isn’t capable of doing everything you need.

Using Your Records

You’ll see why it was so important to build a thorough set of product and service records when you start to enter data in transaction forms. Assuming that you’ve also created records for your customers and vendors, filling out an invoice, for example, is mostly just a matter of selecting the correct options from drop-down lists.

Of course, even if you have a comprehensive set of records, you’ll certainly take on new customers and vendors, and start offering additional products and services down the road. When this occurs, or if you didn’t complete your setup work because you absolutely had to start entering transactions, you can add items as you need them.

Figure 2: When you create transactions, you can choose products or services from a list of existing records or add new ones “on the fly.”

Once you’ve selected a customer and either accepted the default terms and dates or edited them to reflect your needs, you’ll click on the arrow to the right of the first field in the body of the invoice, as pictured in the example above. You can scroll down and find the item that the customer wants to purchase in the list that drops down or click on +Add New.

If you do the latter, the Product/Service information panel will slide out from the right. You can then create a record for the product or service, like we wrote about last month.

A Running Tally

Here is another reason why it’s so important to be conscientious about completing product records. When you enter that number in the Initial quantity on hand field, QuickBooks Online uses that as a starting point for tracking your inventory levels. Every time you process a form indicating that you’re selling x number of widgets, the site subtracts that from the most recent total.

Figure 3: QuickBooks Online helps you keep a close eye on your stock levels in real time.

When you click in the Quantity field, a small cartoon bubble opens above it, telling you how many units are currently available. This keeps you from selling items that you don’t have. It also indicates when you may have too much of a product, and it’s not selling quickly.

Unless you have a very small product list, you may not recognize overstocks. So QuickBooks Online offers several reports that can help you track your inventory. Click on Reports in the left vertical tab, thenAll Reports, then Manage Products and Inventory to see what’s available.

Figure 4: The Inventory Valuation Detail report

Setting up QuickBooks Online for a successful launch can be challenging. So can the concepts involved in tracking your inventory of products. We’re always happy to help with either process – or both

…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).