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QuickBooks Training Workshop (Raleigh, NC) – Tues, May 8th 2012

http://qbworkshopmay2012.eventbrite.com/

Brush up on your QuickBooks skills or learn new ones! Join our Certified QuickBooks ProAdvisor for this interactive and informative QuickBooks training class. This will be a four hour “crash course” that will cover the basics and provide live working demonstrations so you can  quickly learn to use QuickBooks to manage your accounting data.

Topics to be covered will include:

  • Setting up your Company File and Chart of Accounts
  • Working with Lists, Items, and Classes
  • Customer Transactions: Sales Receipts, Invoicing, and Receiving Payments
  • Vendor Transactions: Writing Checks, Entering and Paying Bills
  • Recording Bank Deposits and Credit Card Transactions
  • Preparing and Understanding Reports

Additional content may be covered if time permits.  Every participant will receive a free training packet that will include step-by-step student lessons and other useful information for future reference and support.  Bringing your own laptop to follow along is optional but not required. Light Refreshments will be available.

Time: 1:00-5:00PM.  

Ticket Price: $99.00

Hurry, seating is limited!

Venue Info: Team Nimbus Center – 3801 Computer Dr.  Suite 101  Raleigh, NC 27609

Presented by: netWorth Bookkeeping & Payroll Services of Cary, NC – www.netWorthBookkeeping.com

216 E Chatham St, Suite 102, Cary, NC 27511

For more information: 919-249-6200 or info@netWorthBookkeeping.com

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Steps For Adding Payroll Services To Your Business

If your small business is growing, and it’s time to add an employee, you may be wondering just where to start to begin this process (our focus for this blog is NC because that’s where we are located, your state requirements may differ). Most of the time, your payroll service provider will give you a checklist and packet of forms to complete in order to add employees to your payroll. There are three major components that will be needed to set your company up for payroll services.

First, you will need a Federal EIN, otherwise known as an Employer Identification Number. You may have already received this when you started your business but if you are a sole proprietor, you may need to apply for a new number:

http://www.irs.gov/businesses/small/article/0,,id=97860,00.html

Secondly, you will need a State Withholding Tax Id Number. If you already collect and file Sales and Use Tax, the number will be the same and you just need to call the state and add withholding tax to that existing number.  To apply for a new NC withholding account number, you can apply online here:

http://www.dornc.com/electronic/registration/index.html

Third, you will need a new NC Unemployment Security Commission account number to collect and remit state unemployment insurance withholding:

https://www.ncesc1.com/business/web604/web604Main.asp

Now that the main peices for the employer portion are out of the way, let’s take a look at what forms the employees will need to provide in order to receive payroll wages. The employer must retain these documents for their records for each employee:

W-4 Form (Withholding Allowance)

I-9 (Employment Eligibility Verification)

NC-4 (State Employee’s Withholding Allowance Certificate)

In NC, employers must also provide New Hire Information to the state. A form can be mailed or you can report your new hires online at www.NCNewHires.com.

For more information about whether a worker is an Employee or Independent Contractor, see: Employee or Independent Contractor?

Contact netWorth Bookkeeping Services for more information about our  easy, affordable, online payroll services

QuickBooks Tip – Undeposited Funds Default | Everchange LLC

via QuickBooks Tip – Undeposited Funds Default | Everchange LLC.

QuickBooks Tip – Undeposited Funds Default

If you have used QuickBooks, you may have noticed that when you enter customer receipts there is no option to select which bank account the money is deposited to. Not all clients know that the amounts are coded to an account called undeposited funds and sit in that account until you go into the “Banking – Make Deposits” screen and make the official deposit that will match your bank statement.

I have had a couple of clients not know this and their undeposited funds account was huge. Then, the client does not see the deposit in the bank account and enters the deposit a second time by using the Banking – Make Deposits screen thereby duplicating a customer payment. And the undeposited funds account stays large.

To avoid making this mistake, change the default setting in QuickBooks. Goto Edit – Preferences. Highlight Payments on the left part of the screen. Click the Company Preferences tab. Uncheck the box in the Receive Payments section that says Use Undeposited Funds as a default deposit to account. click the OK button.

After changing the preference, you will notice a new drop-down menu on the receive payment screen which allows you to choose your bank account or undeposited funds. When do you use undeposited funds? When you have more than one payment being deposited the same day. For example, if you received 5 checks and those 5 checks are on the same deposit slip that you take to the bank, use undeposited funds. Then click on Banking – Make Deposit, select the payments, click OK, verify the date is correct, verify that the amount on the screen matches the amount on the deposit slip, and save the transaction.

When do you select your bank account? When you only receive and deposit 1 transaction for that day. For example, you receive one check and that one check is listed on the deposit slip that you take to the bank. And in doing this, you avoid having to go to the Banking – Make Deposits screen to make the official deposit

-Our friends at EverChange, LLC are located in Durham, NC and provide expert QuickBooks and Accounting Services.  For more QuickBooks tidbits, feel free to visit their twitter account @EverChangeLLC or “like” EverChange, LLC on Facebook.

How Remote Services Can Help Save You Time and Money

Now more than ever, businesses are looking for ways to cut costs and operate more efficiently.  Some contracted services, such as bookkeeping and accounting, are outsourced to local professional firms or independent contractors in order to save the company the hassle and expense of hiring an internal employee.

Traditionally, these services have been provided “onsite” or at the place of business which requires additional time and/or mileage to be paid to the professional. Today, there are various resources and business applications that will allow services like these and even internal functions to be provided remotely from anywhere. With the cost of fuel rising once again, let’s explore some of the ways your business can have “remote” or “offsite” workers to help you grow your business while saving you time and money.

     

  • Online Banking Sign up with your bank to access your accounts, transfer funds, and pay your bills online from anywhere.  You can even link your QuickBooks accounting file to your banking account and download all of your transactions onto your ledger with the touch of a button.  Even those paper statements are becoming a thing of the past and your accountant can download them as needed to work on your books from anywhere.

  • QuickBooks Online Payments In addition to being able to download all of your daily transactions into your accounting software right from your bank account, you can now also accept customer payments via EFT every time you email an invoice. Simply register for this feature and your customers can click the link provided with the invoice and enter their routing and account information.  You receive your payment as an electronic deposit in a few days and only pay a small transaction fee of $0.50 each.  No more running to the bank to make deposits or tracking what payments apply to which invoice.  It’s VERY easy to use, free and convenient for the customer.  My clients love it!
  • Log Me In This service allows you to securely access any computer from anywhere.  Access files, work remotely, or transfer documents on your work computer when you’re not there.  Great for offsite workers and for peace of mind because you can always access your office computer.  For more info:  www.logmein.com
  • ShareFile A secure file transfer system that allows you and your customers to transfer files back and forth that are too large to email (like some QuickBooks files).  They even design the interface to match your website and color scheme.  Customer service is top notch and they are based right here in the Triangle area of NC!  www.ShareFile.com
  • Virtual Phone Number Not in the office? No Problem! Just get a “virtual phone number” to have one main number that is as mobile as you are. Each employee or contractor can have a unique extension that forwards to their cell phone or individual voice mail box.  The system can also forward your voice mails as an MP3 file to your email or transcribe it as a text message right to your phone. The best part? The cost for one business extension starts around $6 per month.  www.phone.com
  • CutePDF Your computer recognizes this nifty little FREE program the same as any other printer. Instead of printing your documents on paper, simply save as a PDF and archive it digitally.  It’s quick, easy to use, and you get to save trees and help our environment, too. www.cutePDF.com
  • Instant Messenger There are various free instant messenger programs out there such as Yahoo, AIM, Windows Live, and even Gmail.  Save on phone charges and stay in touch with remote employees and workers by instantly being able to communicate with them.  You can even set your status if you are busy, away from your desk, or on the phone.  A life saver when you just need information in a pinch!
  • Cloud Computing I’m sure you’ve heard this is all the rage as of late.  Actually, it’s been around for years just not with such a trendy name.  The “Cloud” is actually nothing more than “internet based applications” that allow you to store and access your data and software at an affordable price.  Instead of buying your own server which can cost thousands, you can simply “rent” server space and access your data and software applications over the web.
  • Online Payroll Services Payroll is one of those areas that causes a great deal of stress and forces a lot of business owners to be tied down to their payroll schedule. Enter the online payroll service! These simple to use, convenient web-based services allow you to process your payroll over the internet from anywhere.  Some of them (like the payroll service we offer) even pay your taxes and file all your Federal and State forms electronically so you don’t have to.  It doesn’t get any easier than that!
  • Online Accounting and Billing Software If you need to access your accounting data or bill your clients while you are on the go, consider moving to an online accounting or billing service.  There are many out there to choose from so do some research to see which meets your needs best. Some of the more popular ones are QuickBooks Online, FreshBooks, Outright, and Kashoo.

These are all tools that you, your employees, and contractors can utilize to help save money, time, office space (save on rent!), paper, mileage, and our environment.  What are some ways your business uses to stay green, fast, and efficient?

How Much Data Can QuickBooks Hold?

via QuickBooks Tip – How Much Data Can QuickBooks Hold?.

How much data can your QuickBooks company file hold before it becomes “stuffed”, overflowing like a file cabinet, and SLOW?  This is a very good question that most people don’t take into consideration — well because it’s software and should hold an unlimited amount of data.

QuickBooks Pro and Premier are designed for small businesses with 20 or fewer employees and annual revenues of less than $1 million per year, according to the latest information from the ProAdvisor certification study materials.  It is intended to store at least 2 years of detailed information in a company file – this allows you to compare your current business years performance with that of a previous year.

Quickbooks Enterprise is designed for larger businesses having 20-250 employees, needing up to 30 simultaneous users, stricter user access to financial information with 115 different permission settings, want to connect multiple locations, perhaps have remote workers, need to combine financial statements from multiple company files, and have more than $1 million in annual revenue.

How fast a QuickBooks file grows varies significantly from one company to another.  there is no “average” or “typical” company file size, since every business tracks different information.

How quickly a data file grows to “overflowing” will depend on the number of transactions that are entered, the amount of information entered per transaction, and the number of “links” per transaction.

For example, a company that enters 500 1-line invoices per month might find that their data file is smaller than another company that enters 100 5-line invoices per month.  Another example would be a company who usually receives 5 separate payments per invoice would have a larger data file than a company who receives one payment per invoice.

A good way to estimate the growth of your QuickBooks company file is to take the average number of monthly transactions (keeping in mind that an invoice, a payment and a deposit represent 3 separate transactions; while a bill and a bill payment represent 2 transactions), and multiply that by 2 KB to determine approximately how much your file will grow each month.  You can then take the monthly amount and multiply it by 12 to determine an estimated yearly data file size.

According to Intuit, QuickBooks can handle a maximum or 2 billion transactions, however, they do not state which version, (Pro, Premier, or Enterprise) this figure applies to.

In addition to estimated annual file growth and a maximum number of transaction that QuickBooks can handle, business owners must also take into consideration the maximum number of List items that QuickBooks can can accommodate.

The table below indicates the maximum number of items that can be held in individual and combines lists.

List Name
Maximum Number of Items
(Simple Start, Pro, Premier)

Maximum Number of Items
(Enterprise)

Chart of Accounts
10,000
10,000

Items, including Inventory Items
Group Items can contain 20 individual items
14,500
>100,000*
(29,000 in version 6.0 & earlier)

Job Types
10,000
10,000

Vendor Types
10,000
10,000

Customer Types
10,000
10,000

Payroll Items
10,000
10,000

Payroll Items per Employee Record
25
100

Price Levels
100
100

Classes
10,000
10,000

A/R & A/P Terms – TOTAL
10,000
29,000

Payment Methods
10,000
10,000

Shipping Methods
10,000
10,000

Customer Messages
10,000
10,000

Memorized Reports
14,500
29,000

Memorized Transactions
14,500
29,000

To Do Notes
10,000
10,000

Total Names – Employees, Customers,
Vendors, Unit of Measures and Other
Names – COMBINED
14,500
100,000*
(29,000 in version 6.0 and earlier)

Sales Reps
14,500
29,000

Sales Tax Codes
10,000
10,000

Billing Rate Levels
100
100

Fixed Asset Items
10,000
10,000

Ship Via
10,000
10,000

Templates
10,000
10,000

Units of Measure
10,000
10,000

Ship To Addresses
Unlimited (?)
Unlimited (?)

 

Paying Bills vs. Writing Checks in QuickBooks

December 26, 2010 1 comment

One common mistake I see business owners making is not knowing when to use the Enter/Pay Bills (Accounts Payable) feature and when to use the “Write a Check” feature and what the difference is. When properly recorded, the end result of each method is the same on the General Ledger and your Financial Statements (Increased Expense/Reduced Cash). I have created this model to show the flow of each method for training purposes.

 

 

 

 

 

 

 

 

Use the “Write check” feature for expenses that are to be paid immediately. This will simply record the amount spent to an expense account (i.e., office supplies) and reduce your bank account by that same amount.

“Enter a bill” and use the Accounts Payable system for vendor bills that will be paid at a future date. This will increase your A/P balance to show the liability for the amount owed.
Think of Accounts Payable as a holding bucket for money you owe and will need to pay at a future date. Once you “Enter a Bill”, you must use the “Pay Vendor Bills” function to properly record the payment of that bill.
THE PROBLEM: If you have “entered a bill” and then mistakenly “Write a check” to pay it, you will have recorded the expense twice and your A/P balance will stay falsely inflated.
This is also true on the Income/Revenue side: “Create Invoice/Receive payment” vs “Enter Sales Receipt”
The key is to be consistent and to properly use one function or the other but never both at the same time!
Happy Accounting!