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8 posts from March 2013

Building Better Business Finances: Why Is It You Do Your Own Payroll?

When it comes to very low value and potentially high risk business activities, doing your own payroll ranks right near the top.

According to SurePayroll, over 40% of small businesses receive an average tax penalty of $845 per year. OUCH! Tax Time Bomb

Unfortunately, over the last twenty-five years I have witnessed many small business disasters that have resulted from making the fateful decision to do payroll in-house.

BUT IT'S EASY TO WRITE THE PAYCHECKS!

This is one of the main comments I hear from business owners when talking about payroll. Or said another way, "gee, how hard can it be to write the paychecks to the employees"?

Of all the pieces that go into a business payroll system, I would very much agree that creating the paychecks is by far the easiest part of the puzzle.

YOUR PAIN COMES WITH THE DEPOSITS AND FILINGS

Do you have a payroll expert on staff? (the likely answer is no).

If not, who is going to keep you updated on the massive amount of payroll laws and timetables you need to keep track of? How do you know you are filing the right forms at the right times and with the right people?

Just for giggles, sit down and figure out just what the schedule should be to make your federal tax deposits. Oh, and by the way, are flexible spending accounts taxable for state or local tax purposes? Might as well review the rules on those too. Got a migraine yet? (no fair asking your neighbor in the business suite down the hall how they handle these payroll issues - they very likely have most or all of wrong...)

You see, the real pain of doing payroll yourself is normally felt one to three years AFTER the payroll was processed. This pain becomes intense when you get the letter from the tax agency that indicates you were either late in filing or didn't deposit enough. Or worse, both of them! Get out the checkbook - it may likely be time to pay up (though the tax agencies aren't always right either...)

Just one of these notices will more than likely wash away the "savings" you thought were automatic by doing your own payroll.

PUT THE STAFF ON VALUE-ADDED ACTIVITIES INSTEAD

In addition to the "it's easy to write paychecks" argument I hear, the next most popular sentiment is "well, I'm already paying my staff to be here - might as well have them do the payroll".

If that's the case, maybe they should perform your next cavity filling or oil change too!

All kidding aside...

If you are paying the staff, put them to work on projects that add value to the business. Some quick examples:

  • Following-up on overdue customer accounts
  • Helping put together your next customer mailing
  • Connecting with customers and prospects via social media or e-mail tools

Don't let your business fall into the non-value added trap of doing payroll in-house! There should be plenty of other things for your staff to work on that have a much higher value.

WHO DO I USE TO PROCESS THE PAYROLL?

There are a plethora of businesses that can take care of your payroll. National firms such as Paychex, SurePayroll, and Paycor as well as local payroll specialists have you covered on this issue. Get a few quotes - you will quickly find that it isn't as expensive as you think it might be.

Even better - the sooner you hand off payroll to an outside processor, the sooner you relieve the potential burden you face for late filings, undeposited taxes, underdeposited taxes and other payroll nightmares that haunt tens of thousands of small businesses every year!

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Automatically Create Purchase Orders in QuickBooks

Looking for a way to automatically create purchase orders within QuickBooks?

If so, you will want to take a closer look at the Easy Purchasing plug-in for QuickBooks, developed by the folks at MISys.

HOW EASY PURCHASING WORKS

Easy Purchasing does the following:

  • Scans open sales orders
  • Scans assemblies and can even "explode" assembly items to check status on the component parts
  • Checks existing inventory and items on order
  • Figures out what you need and when you need it
  • Automatically creates purchase orders in QuickBooks

SEE EASY PURCHASING IN ACTION...

 

HOW MUCH IS EASY PURCHASING?

Easy Purchasing costs just $20/month per user and is easily billed to a credit card of your choice. There are no long-term contracts to sign.

USE THIS CODE FOR A BONUS!

Be sure to use my dealer code:

  • B3554-7920-10

once you see that Easy Purchasing is a good fit for your purchasing and inventory management teams.

Use this code and I will send you the link to a video of your choice from my QuickBooks training library!

GET A 30 DAY FREE TRIAL OF EASY PURCHASING NOW

Want to play around with Easy Purchasing yourself to evaluate how it can simplify your purchasing process?


NEED MORE ADVANCED INVENTORY SOLUTIONS FOR YOUR BUSINESS?

Click the Contact Scott button below so we can discuss your needs in more detail...

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How to Combine Multiple Company Files for QuickBooks Reports

Need to combine multiple QuickBooks company files to get a consolidated profit and loss or balance sheet report?

QuickBooks Enterprise provides a feature not found in the Pro or Premier editions - the ability to automatically combine files and get combined balance sheets, profit and loss and other reports. See how it is done below (click the gear at the bottom of the video to change the playback quality)...

 

WANT TO UPGRADE TO QUICKBOOKS ENTERPRISE?

As a certified Premier Reseller of QuickBooks Enterprise, I can help answer your questions as well as take care of your order for Enterprise when you're ready to make the move.Just click the contact button below for more details.

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QuickBooks Purchase Orders - Watch the Due Date Field

So you're busy cranking out a purchase order to your favorite vendor in QuickBooks, and you get to the "Due Date" field as shown in the sample screen shot below:

Due Date Field on PO

Immediately, you think that by "due date", QuickBooks is referring to the date the goods on the purchase order would be due to you.

Not so fast...

WHAT THIS FIELD ACTUALLY REPRESENTS

In reality, the "Due Date" field is actually tied to the payment terms for the vendor pulled to the purchase order. So, in the example above, if you went to the vendor center and looked up East Bayshore and looked at their "terms", you would see "net 30 days". Because of that, when a PO is created for this vendor, QuickBooks is going to add 30 days to the date of the PO and fill that in as the "due date". This very likely has absolutely nothing to do with the actual shipping date of the goods you are ordering.

BETTER ALTERNATIVE TO TRACK THE SHIPMENT

If it were me, I'd customize the PO template you regularly use. Once in the customization area, I'd remove the "due date" (or at least rename it to "Payment Due Date" or something more descriptive) and then add the "Expected Date" field that is available. In the example below, I've added the "Expected Date" field and given it a new and descriptive name.

Expected Ship Date on PO

The content of this field now has no relation to the payment terms you have defined for the vendor- and that is a good thing if you want this to be tracking the shipment date.

ADDITIONAL RESOURCES

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Simplifying Accounts Payable in QuickBooks: Using the Bill.com Inbox

I know that simplifying the bill paying process is a goal of many businesses - and there is no better option than using Bill.com.

In the coming weeks, I'm going to periodically help you take a closer look at the tools in Bill.com so you can see just how easy it is to reduce the time spent paying bills and fully automating the process.

Bill dot com 4 Easy Steps Graphic

YOUR CENTRALIZED WORKSPACE

Bill.com offers you one centralized place to gather all of the information relating to your vendor bills.

You can:

  • Upload them directly from your computer or other network file storage location
  • Fax the bill directly to a dedicated fax number for your business (your vendor can fax directly as well)
  • E-mail the bill directly to a dedicated e-mail address for your business (your vendor can e-mail directly as well)

A CLOSE-UP OF YOUR INBOX

Here is a screen shot of what your centralized workspace looks like in Bill.com

Bill dot com Inbox

SYNCS WITH QUICKBOOKS

There is no double-data entry involved. Enter once in Bill.com and have the information sync directly to your QuickBooks file.

GET A GREE TRIAL TO CHECK IT OUT

It is easy to see just how Bill.com works. Get a free trial today - no credit card is required. I am using it in my business, and I hope you find it valuable for yours.

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RELATED INFORMATION

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How to Handle Customer Deposits and Prepayments in QuickBooks

Handling customer deposits and prepayments in QuickBooks can be very confusing and lead to inaccurate financial reports if not handled correctly.

My new training video on the proper way to handle these transactions will provide you step-by-step instructions and the guidance you've been looking for.

WHAT THIS VIDEO TEACHES YOU

  • Conversion of quotes to sales orders and how they impact your accounting
  • Detailed screenshots and narration of a sample customer order that has two deposits/prepayments required before shipment
  • Laser-focused insight on how each step impacts your accounting reports (balance sheet and profit and loss)
  • Handling the final invoice at the time of shipment to get your sales figures correct AND take care of the deposits/prepayments
  • Bonus tips on how to create a great report to help you track the details of ALL of your customer deposits
  • How to keep your CPA happy by handling these deposits correctly each time, every time

All of my training videos come with a complete money-back guarantee. You can view the video online as many times as you like for 30 days or simply download the video to your computer and view it there.

For more details or to purchase "How to Handle Customer Deposits and Prepayments in QuickBooks", click the button below:

ADDITIONAL RESOURCES

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How Come I Can't See Account Numbers in QuickBooks?

If your business is one that needs accounts numbers for your ledger accounts, you may be wondering why an account number field does not appear in QuickBooks.

No worries - a couple of clicks and you're in business.

To turn on account numbers in QuickBooks, click Edit > Preferences > Accounting > Company Preferences and check the "use account numbers" box, as shown below:

Account Number Preference

Once you do that, the account number box appears in each ledger account, as shown below:

Account Number Box in QuickBooks

WHY USE ACCOUNT NUMBERS?

In some cases, the use of an account number is really just something that has carried forward from older accounting software that wasn't able to use account names.

In others, the chart of accounts is extensive, with a lot of similar account names. The use of a number in these cases helps to ensure that the entry is being posted to the correct ledger account. For example, if you posted something to account called Computers - would you know that it was going to an asset account or an expense account?

Many accountants and accounting firms recommend the use of account numbers to avoid mis-postings. As you can see within QuickBooks, the choice is yours on whether to use them or not.

OTHER HELPFUL TIPS...

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Can I Put a Range of Numbers in the Quantity Field on a QuickBooks Estimate?

If your business uses the estimate/quote module of QuickBooks, you've probably wondered about whether you can show a range of quantities for an item in the form or not.

For example, if you sell an item at one price with a quantity of 1-4 purchased, and a different price with a quantity of 5-10 purchased, it would be helpful to display these quantity ranges for easy reference.

In QuickBooks, the quantity field is reserved to hold just one value in QuickBooks. It cannot hold a range of numbers or even any special characters.

ALTERNATIVE TO CONSIDER

You can take advantage of the description column when creating a quote to display the information that you can't get to fit in the quantity field. An example below:

Quantity Range

Since the quote form never posts to your accounting records, you don't have to worry about amounts being recorded incorrectly.

RELATED POSTS:

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