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Add/Edit Multiple List Entries Simplifies Record Changes

Posted on July 1, 2011 by Roy Fisher

Data entry and modifications in QuickBooks can be tedious for a bookkeeper or owner. Beginning with QuickBooks 2010 Pro Edition and above, that job got a lot easier. The Add/Edit Multiple List Entries tool does just what its name implies: It lets you or the bookkeeper add entries to your lists of customers, vendors, services, inventory parts, and non-inventory parts. It also makes changing one or several of them quick and easy.      

Using this feature, you can:      

     • See customized views of your list data
     • Enter missing information
     • Create new entries from duplicates of existing ones
     • Do a mass change of a whole column
     • Copy and paste records from Excel      

There are myriad applications for this tool. You or the bookkeeper could use it, for example, when you’re changing Preferred Vendors for a group of items and you don’t want to have to edit each individual item record. Or when the area code for select customers or vendors has changed. You could use it if you’re adding an inventory item that’s just slightly different from another, or when your accountant tells you to change the name of an account.      

Building the perfect view      

To get started, click Lists | Add/Edit Multiple List Entries. In the screen that opens, click the arrow next to the List box and select the type of data you want to see, like Customers. Then select the group that you want displayed by dropping the View list down. Click the Customize Columns button. This window opens:      

       

Figure 1: Make sure your columns are correct an in the right order.      

The list on the left represents all possible column labels. To make the list on the right reflect what you want to see in your table, highlight the correct item and use the Add> or <Remove buttons and the Move Up or Move Down buttons. When you’re satisfied, click OK. The table will change to display those columns in that order.      

TIP: You may have a lot of empty space between columns. To close those gaps, put your cursor on the faint vertical line that separates two column names. A cross-like symbol will appear. Drag it left or right until the columns are positioned well.      

Let’s say that a customer commissions a new job. Since so much information will remain the same as in previous jobs, you or the bookkeeper can duplicate her record. Highlight the last entry in her list of jobs and right-click. Select Duplicate Row. The new entry will contain her default information, except the name will change to DUP [NAME OF PREVIOUS JOB]. Change that phrase to the name of the new job and click Save Changes if you’re done.      

      

Figure 2: It’s easy to duplicate an entry’s information.      

Mass changes      


You or the bookkeeper may occasionally want to make the same change to a subset of records. Say a city’s zip code changed and you want to find the customers affected. You’d open the Customers list, click on the View arrow and select Custom Filter. Then:        

  
  • In the Search list, choose from All, Active, etc.
  • In the For box, enter the common attribute, like the zip code.
  • Click on the arrow next to the in box, and tell QuickBooks where you want to search            

      (address fields, all common fields, etc.).       

      

    

Figure 3: You can search for a group of entries that share a common characteristic.      

  • Click Go. QuickBooks will display a list of all of the matching entries.
  • Make your change to the entry at the top of the list, then right-click on it. You’ll see this menu:

    •        

       

  Figure 4: The Copy Down command changes all entries in a column to match the top one.      

When you select Copy Down, all of the entries duplicate the first one in the list.      

       

Some housekeeping      

 

Anything you  change in these views – as long as you click Save Changes– will be reflected throughout QuickBooks, wherever that record appears. If an error has been made by you or the bookkeeper, like using a dollar sign, you’ll get a message telling you to fix it.  

You can use Add/Edit Multiple List Entries in other ways. For example, it’s a good way to see how thorough your recordkeeping is. Take a look at your lists occasionally to spot missing data. Or say you were at a trade show and signed up new customers, but you didn’t have QuickBooks on your laptop so you entered them in Excel. Once you’ve made sure that your column names and order in Excel match those displayed in Add/Edit Multiple List Entries, you can just copy and paste the new customers in.      

This feature is easy to use, but be cautious. We can help with complex modifications. Add/Edit Multiple List Entries is one of the ten best features QuickBooks has incorporated in recent years. It’s an easy way to get a birds’ eye view of your lists, and a great time-saver.  

 

 

   

  

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IRS Wants Your Data File

Posted on May 15, 2011 by Roy Fisher

Big brother is at it again. Over the past three years, the IRS has expanded its tools it can use to get more money from you. Recently, they increased the penalties upon preparers of tax returns the IRS deems to be inaccurate and now they are increasing the data gathering ability of the agency. The IRS is now requesting your data file when they select an unfortunate business for audit. In the past, when a business was selected for audit, a copy of the general ledger and financial statements in print format were provided. Recently, the IRS has purchased over 1,500 licenses from Intuit and agents are being trained on how to use the small business software.

What Does this Mean?

When a business is selected for audit, the entire QuickBooks file must be turned over to the IRS, even though it may contain information from tax years unrelated to the years under examination; or data not normally considered part of a firm’s books and records. For example, if the IRS is auditing your 2010 corporate return, they can request your QuickBooks file which may contain your 2009 and previous data as well as your 2011 data. This 2009 and previous years data is well beyond the scope of the audit as is your 2011 data and is not subject to the audit. But now the data is in the data file, so the IRS can see it.
The American Institute of Certified Public Accountants sent a letter on March 29, 2011 requesting clarification of the IRS position and to seek further clarification of its procedures. On April 20, the IRS responded “it is important an exact copy of the original electronic data file be provided to the examiner and not an altered version.” The AICPA states that the IRS wants to see the original data file because it would help identify whether there have been deleted or altered entries to the file. The letter elaborates that “the original data file may provide the date a transaction was originally created, dates of subsequent changes, what changes were made, and the username of the person who entered or changed that transaction.”

So How Do you minimize the Intrusiveness of the IRS?

Your Electronic data files should be backed up annually at the end of each tax year to allow the business to provide a data file that does not provide as much subsequent year data. This would mean that businesses should get their tax year closed as quickly as possible to minimize the subsequent year data file information exposure to the IRS.

If you are unfortunate enough to be audited, prior year’s data in the file can be compressed. The IRS specifically states in their letter that to the AICPA that condensing data “is acceptable as long as the condensed data does not include transactions created or changed for time periods under audit, or for transactions from prior years that have an effect on the years under audit. However, if the scope of an audit is expanded, the IRS may request another backup file that was created prior to the date the company file was condensed or request a copy of the archive file that was created during the condensing process. ”

An Additional Cost Burden on the Small Business

In these tough economic times, the small business is getting another indirect tax burden placed upon them. To comply with the IRS mandate and to protect itself from the IRS, a backup of the data file used to prepare a tax return must be kept by the client. Most tax preparers may start offering a backup storage fee to protect themselves and their clients from the ever increasing penalties and aggressive audit tactics of the IRS.

Develop a Tax Plan

As I always say, the best defense is a good offense. Have a plan for dealing with the IRS. Work with your CPA to understand the IRS code sections that are relevant to your business. Have your CPA develop a tax plan that allows you to take advantage of every legitimate deduction and put more money in your pocket. Finally, make sure your business is keeping complete books and records.

If you do not have a plan for dealing with the IRS, then call us. We will protect you and show you how to keep more of the money you work so hard to earn.

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Can You Withdraw from Your IRA Without Paying a Penalty?

Posted on April 28, 2011 by Roy Fisher

A common question that my firm receives relates to the ten percent penalty for early withdrawal from an IRA account. There are a few cases when you can withdraw money from your IRA account before you reach the age of retirement without having to pay the 10 percent penalty. Here are some examples:

Medical Expenses – If you have been paying medical expenses that exceed 7.5 percent of your adjusted gross income, you can withdraw money from your IRA without paying penalty, up to the amount of the excess.

Higher Education – You can withdraw from your IRA to pay for qualified higher education for you, your spouse or your children.

You must make sure the eligible student attends an IRS-approved institution. This is any college, university, vocational school or other post-secondary facility that meets federal student aid program requirements. The school can be public, private or nonprofit as long as it is accredited.  The retirement money can be used to pay tuition and fees and buy books, supplies and other required equipment.

Health Insurance Premiums while Unemployed – Limited to those who have received unemployment compensation for 12 consecutive weeks under State or Federal law, during the current or preceding year. Premiums can be used to cover yourself, your spouse or dependents.

Disability – Account owners, who are mentally or physically disabled so that they cannot work in their regular or similar profession, can withdraw from the IRA without penalty. The disability has to be for long or indefinite duration.

First Time Home Buyers – The home must be the principal residence, purchased by you, your spouse, child or grandparents. The buyer must not have owned a home in the 2 year period ending with the new home purchase.  Its limited to a $10,000 cap and the money has to be withdrawn within 120 days of the purchase on qualified expenses.  This includes the costs of buying, building or rebuilding a home, along with any usual settlement, financing or closing costs.  If you and your spouse are first time homebuyers, you can each receive distributions of up to $10,000 each without having to pay the additional 10 percent tax.

Military Reservists – Those who are called to active duty for 180 days or more can withdraw money from their IRA without penalty.

Inheritance – Money paid to the trust or beneficiaries of a deceased IRA account owner after his death are exempt from penalty.

It’s important to remember that these exceptions are for the ten percent penalty only.  You still have to pay taxes on any withdrawal you take out.  It is also important to note that some of the penalty tax exemptions for IRA’s are not available for early withdrawal from 401(k). Additional consideration should be given to a Roth IRA.

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How to Create Sales Orders in QuickBooks

Posted on April 28, 2011 by Roy Fisher

There aren’t that many different types of forms to keep straight in QuickBooks, but most QuickBooks users don’t use all of them. They probably use invoices and purchase orders frequently, and may fill out the occasional sales receipt or credit memo or estimate.

But what about sales orders? You may find that they could make your bookkeeping more accurate and easier. There are only a few situations where they’re needed, but they’re the appropriate form to use at those times.

A happy problem

If you’re lucky (or a good businessperson), you have customers who place orders frequently. It may not be practical to invoice them every time they order, but you want to make sure everything is recorded. A sales order (which you’ll eventually turn into an invoice) is a great choice for these customers.

Warning: You must use a sales order from the beginning of the selling process; you can’t switch gears part-way through.

To get started, click Customers | Create Sales Orders. A blank form like this one will open.

Figure 1: To create a sales order, you simply fill in the blanks and select from drop-down lists, just as you would with an invoice.

Would you send a sales order out to a customer in a multi-order situation, or wait until you have enough sales to dispatch an invoice? That’s up to you. It’s a good idea if you want them to be aware of the costs that are piling up.

Looking good

Before you begin entering data on the sales order form, check the fields to make sure they’re all needed, or if you’re missing any. The Template field in the upper right corner should display Custom Sales Order; change it if not. Should you want to add or delete fields, click the arrow next to Customize, then Customize Design and Layout.

If you’ve just been sending out the default forms that QuickBooks offers, you should consider adding some personalization. Click Create new design if you want to upload a logo and select fonts, colors, etc. Once you’ve decided on a theme, QuickBooks can apply it to all of your forms.

To add or delete fields, click Customize data layout. By checking and unchecking boxes, you can alter the content of your sales orders.

Figure 2: It’s easy. Just check or uncheck boxes to have field labels appear (or not) onscreen and in print. You can also change the label text, reorder columns, and designate text for a footer.

Halfway there

Another situation where you might want to send a sales order is when you’re doing partial invoicing; that is, when you don’t have enough items to fulfill the order as it came in.

In a case like this, go ahead and complete a sales order as if you had everything in stock. When you’re done, save the sales order, then find it and open it again. Click the arrow next to Create Invoice, then click Invoice. You’ll see this dialog box.

Figure 3: This dialog box lets you create an invoice for all items on a sales order or just a subset.

Click Create invoice for selected items, then OK. The Specify Invoice Quantities for Items on Sales Order(s) window opens. Items on the sales order you created are listed here, with additional columns for number available and number you ordered, number previously invoiced, and the unit of measured used (if applicable).

There’s a check box next to Show quantity available instead of quantity on hand. Here, you can opt to display the number of each item that’s truly available; that is, the number actually in inventory minus those reserved, either on other sales orders or for building inventory assembly items. Or you can request the number that’s physically in inventory.

Using this information about availability, you’ll enter the number of items you want to invoice from this sales order in the To Invoice column. It would look something like this:

Figure 4: When you convert a sales order into an invoice, you can select which items should be included.

Click OK, and your invoice appears. Do any editing necessary, and dispatch the invoice.

Tip: You can choose whether to have the items with a quantity of zero display on your invoice by going to Edit | Preferences and clicking on the Sales & Customers tab.

Tracking it all

There are several places in QuickBooks where you can view your sales orders. The best way to keep track of those partially filled is through two reports, Open Sales Orders by Customer and Open Sales Orders by Item. You can also see them, of course, in the Customer Center, and in the balance and transaction history found next to transaction forms.

Sales orders can help you better track sales, speed up receivables with partial invoices, and maintain communications with frequent buyers. But partial invoices require extra attention to inventory.

Before working with sales orders, it’d be best to schedule a training session with us; we can help you (or your bookkeeper) keep things straight. If you are having a difficult time keeping up with all of your bookkeeping tasks, outsource it to us. We are there for you whether you are a do it yourself QuickBooks user who needs technical help or someone who is ready to outsource their bookkeeping so you can  focus on what is most important…..growing your business!

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Creating a Customer Statement in QuickBooks

Posted on March 29, 2011 by Roy Fisher

How do you let customers know they owe you money? Probably by sending invoices. And how’s that working for you? If your customers are all conscientious and pay on time, maybe that’s all you need to do.

But perhaps you need to consider doing at least part of your billing by dispatching statements. These forms have their drawbacks. For example, you can’t include sales tax or discounts on them. You can’t group related charges and subtotal them. And your customization options are weaker than in invoices.

Still, you may want to send statements when you’re billing on a regular basis for services, or when a client has built up numerous charges, some of which are past due. Statements lay out the customer’s current financial obligation to you, including finance charges, should you choose to impose them.

Outlining the charges

To get started, click on the Statement Charges icon on the desktop. (If there’s no icon and you want one, click Edit | Preferences, then Desktop View | Company Preferences, then click in the box next to Statements and Statement Charges.)  Or you can just click Customers | Enter Statement Charges.

Figure 1: Click on Edit | Preferences to add Statement Charges and Statements icons to your desktop.

The customer register opens. Select the customer you want to create a charge for by clicking the down arrow next to Customer:Job. If you are in the middle of more than one job for the customer, make sure you make the correct one active.

Go down to the first blank line and change the date if necessary. Tab to the Item field, and drop the list to select the relevant product or service. Tab and enter the Quantity. The Rate and Amt Chrg should be filled in (if not, go back to Lists | Item List and edit the record).  QuickBooks will have entered STMTCHG in the Type field. Tab to the Description field and complete it if it’s blank, and select a Class if you’d like. Your window will look something like this:

Figure 2: It’s very easy to enter statement charges in QuickBooks.

If you have another charge for that job, go ahead and enter it. When you’re done with charges for that job, click Record.

Build a statement

When you’ve entered all of the charges, you can easily convert them to statements. From the Home page, click on the Statements icon. This window opens:

Figure 3: You’ll select options from this window when you’re building a statement run.

If the window contains an A/R field, that means that you have more than one receivables account. Be sure to select the appropriate one. Verify, too, that the date is correct. This will appear in the customer’s register as the Billed Date.

Here, too, you can choose a range of transaction dates for your statement(s), or simply opt to create forms for all customers with open transactions (in the latter case, you can limit it to transactions that are more than 30 days past due). You must also indicate whether you want statements sent to all customers or a subset. You can manually choose one or many customers, or select by Type (commercial, residential) or Preferred Send Method (E-mail or Mail).

QuickBooks gives you some control over your statements’ layout; click Customize if you want to explore this. Next, you can indicate whether you want to create one statement per customer or per job. The other options here are self-explanatory, but be sure to go through them every time you create statements.

Another decision

Will you be wanting to assess finance charges on the past due charges? This is a decision you may want to talk over with us. It’s a complex issue. Should you want to do so, though, clicking on Assess Finance Charges will open the Assess Finance Charges window.

When you’re satisfied with your choices, you can Preview your statements. Here’s an example:

Figure 4: Statements lay out all transaction activity within a given period.

Statements don’t take over the role of invoices, but they can be an effective way to let your customers—and you—get a comprehensive view of their financial interaction with you. If you’re still unclear on how these forms can fit into your accounting workflow, we can help.

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Updating Physical Inventory Counts in QuickBooks

Posted on November 29, 2010 by Roy Fisher

Keeping inventory records up to date in QuickBooks is important. Follow these easy steps provided by Ledger Solutions on properly updating your “Physical Inventory Counts” in QuickBooks.

1. Go to the Vendors menu and select Inventory Activities. Select Adjust Quantity/Value on Hand.

2. Enter the Adjustment Date and an optional reference number.

3. Choose the appropriate Adjustment Account. Use the following information to help you determine the appropriate account:

  • Usually shrinkage (breakage, stolen items, shortages, etc.) is recorded as an expense.
  • Inventory gains can be recorded in an income account
  • When working with both shrinkage and gains, you can create a single adjustment account for tracking net gains or losses. If you are confused as to which account to use call Ledger Solutions for help.

4. Select the appropriate Customer/Job and Class if applicable.

5. You have 2 options for adjusting the quantity. Enter the correct physical inventory count in the New Qty column. Or in the Qty Difference column, enter the difference between the actual physical count and the Current Qty recorded in QuickBooks. Repeat this for each inventory item to be adjusted.

6. Update the current value of inventory items by selecting the Value Adjustment checkbox at the bottom of the window. A New Value column will pop up where you can enter the updated value (you cannot use the Qty difference when the Value Adjustment option is checked).

 

 

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QuickBooks Shortcuts!

Posted on October 7, 2010 by Roy Fisher
Using these QuickBooks shortcuts or “hot keys” will decrease the time you spend on navigating through QuickBooks.

Quickly Closing All Open QuickBooks Windows                                                                                

To close all open QuickBooks Windows quickly, click on Window on the menu bar, and then Close All.

Using the History Button

The history button shows you all the transactions related to the one you are currently viewing.  For example, view an invoice and then click on the History button.  By doing this you will see the payment details associated with this invoice on your screen instantly.                                                                                                                                  

Standard Windows Shortcuts that work in QuickBooks                                                            

*Just type the key shown in the data field.

  • CTRL+C= Copy
  • CTRL+ X= Cut
  • CTRL+V=Paste
  • CTRL+F=Find

 Keys that help you save lots of time when working with dates

*Just type the keys shown when using the date field.

  • ALT+Down Arrow=Show Calendar
  • T=Today’s Date
  • M= First day of the month you are working in
  • H= Last day of the month you are working in
  • Y=First day of the year
  • R=Last day of the year
  • +=Move the date forward by one day
  • -= Move the date back by one day

Chart of Accounts Shortcut                                                                                                                

CTRL+A brings up the Chart of Accounts right away

Memorized Transactions QuickBooks Shortcut                                                                              

CTRL + M memorizes an item
CTRL + T brings up the memorized transaction list

Calculator Shortcut                                                                                                                                  

When working in a register, you can use the = to bring up the calculator when adding or subtracting from an account.

How to turn on the Reminders feature when opening a company file                                       

1. Click on Edit
2. Click on Preferences
3. Click on the picture of Reminders from the list that appears
4. Make sure a check mark is in the box marked “Show Reminders listed when opening a company file”.
5. Click on the OK button

How to customize the settings on your QuickBooks desktop                                                         

1. Edit
2. Preferences
3. Desktop View

Fast Access to Company Files recently used

Use the Open Previous Company option found on the File menu to give you fast access to company files you have used recently.

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Hurricane Season and Taxes

Posted on October 7, 2010 by Roy Fisher
Here in Texas, we have had our fair share of hurricanes in recent years. Not only have hurricanes like Hurricane Rita and Hurricane Ike destroyed homes, cars, property, and businesses, they have destroyed important financial and tax records.  Although lost financial records may seem to be a small worry compared to other valuables, keeping your records safe will save you a lot of time and worry during hurricane season.  Ledger Solutions advises you take the following preparatory action now.1. Maintain Electronic Back-ups of Your Records                                                        

Records such as bank statements, tax returns, and insurance policies should be backed up in case of a natural disaster.  Save your electronic records to a flash drive or CD or any other portable electronic storage device. Once you have your electronic records (or just hard copies of the originals) be sure to keep them in a safe place away from the original set.

2. Review Insurance Policies                                                                                                         

Go over your insurance policies for the appropriate value and coverage.  Be sure to review things such as deductibles and contingent business interruption.

3. Keep Emergency Plans Up to Date

Review your business’s emergency plans annually. When your company gets new employees or reorganizes, emergency plans should be updated. Make sure all of your employees (old and new) are aware of the emergency plans.  Maintain an emergency contact list to include all of your employees.
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Recording Bounced Checks in QuickBooks

Posted on October 7, 2010 by Roy Fisher

Having a customer bounce a check can be annoying, but it does not have to be stressful. Follow this simple procedure from Ledger Solutions to alleviate the pain of recording a bounced check.

  1. Leave the original transaction as is. That means the “receive payment” file will remain unchanged.
  2. Go to the Lists menu and select “Item List” and create 2 new “other charge” items.  The first is named ”Bounced Check” and is coded to the “company bank account”.  The other is named ”Bounced Check Fee” and is coded to “bank service charges”.   
  3. Go to the Customer menu and select “enter statement charge” to create a new receivable for the amount the customer still owes you.  At the top choose the correct Customer/Job, under Item choose ”Bounced check”, under amount enter the amount still owed by the customer and in the memo enter the customer’s bounced check number.
  4. Enter another “statement charge” to record the amount you charge as a bounced check fee.  Choose the correct Customer/Job, then under Item choose “Bounced Check Fee” and then under amount enter the bounced check fee to be reimbursed by the customer.
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Sales Tax Basics for QuickBooks

Posted on October 7, 2010 by Roy Fisher

QuickBooks makes charging and paying sales tax easy. Here are some basic sales tax tips to make your QuickBooks experience more efficient.

Setting up Sales Tax
A few things you must do to set up sales tax are:

  1. Under Preferences, go to Sales Tax and under the Company Preference answer “yes” to the question “Do you charge sales tax?”
  2. Customers liable for sales tax must be setup in the Customer Center with their appropriate tax information.  Select the customer and under the Additional Info tab choose the appropriate Sales Tax Code (Non or Taxable) and Tax Item (Item/Rate used for this customer).
  3. You must set up “Sales Tax Items” with appropriate percentage rates needed (this can be done when you are in the Sales Tax Company Preference window) or go to Lists / Item Lists and setup additional new Sales Tax Items.

Sales Tax Payment Basis
There are two methods for reporting and paying sales tax to the taxing authorities. These methods are listed in the Sales Tax Preferences dialog box (one method must be chosen). The methods are:

  1. Accrual Basis Method - this means your company pays the sales tax to the taxing authority when the customer is charged (based on the invoice date).  It does not matter if the invoice has been paid or not.
  2. Cash Basis Method- this means your company does not pay the sales tax to the taxing authority until the customer invoice has been paid.  If a partial payment on the invoice is made, QuickBooks allocates the percentage of the sales tax to be paid. 

If you have questions as to which method to use, check with Ledger Solutions-we will be happy to help!

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