9 out of 10 clean-up projects we work on involve mismanaged undeposited funds. Sometimes thousands of entries are hiding behind the scenes. As a result, income is overstated and our client doesn’t have a realistic grasp of how their business is doing.
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If you pay your employees every other week but your income is recognized monthly, your revenue will not be matched to the expenses that helped earn it. On your income statement (P&L), expenses would be understated some months and overstated others.
One of the benefits of hiring an accounting/bookkeeping expert is the ability to meet with them after month-end close, to have them explain your financial statements to you and to help draw your attention to important aspects of the financial data. A monthly financial review meeting is a good starting point to ensuring your business is staying on track. Here is what we recommend you review:
A common first task for many of the new clients that engage BudgetEase is catching up their QuickBooks file to date. Often times, it has been years since a reconciliation has been done, principle and interest have been lumped together for just as long or the bank feeds have not been cleared of transactions. When tackling such a project, organization and the setting of expectations is important. Whether you are an accountant beginning to catch up a file or a business owner that has an outdated QuickBooks file, it pays to have an understanding of what the catch-up journey might look like.
Intuit has aligned with a bank called Green Dot to provide QuickBooks Online users with an integrated checking account. This account, called “QuickBooks Cash and Envelopes,” is designed to house funds received from your QuickBooks Payments merchant services. Per Intuit, it “combines a checking account, savings envelopes, merchant service payments, and a cash flow planner all in one integrated interface.” Here is a quick look at Intuit’s selling points:
We decided to analyze our client’s financial performance for the last two years. (There's no denying it -- we are a bit nerdy!) Not surprisingly, we found that most small businesses had a difficult 2020 year. We noticed a few things when reviewing the data, such as:
It's time to close the books on 2020, but before you close the year in QuickBooks, you need to ensure a few things are done.
We aren’t talking about peanut butter and chocolate (although that is good); we are talking about a part-time bookkeeper and a part-time CFO. That combination lets you do what you do best – create new products and services for your small business.
For several decades non-employee employee compensation was reported using a 1099-MISC. The IRS has changed that for the 2020 tax filing year and is requiring those wages to be reported on a 1099-NEC.
Now that specifics are out for the second Paycheck Protection Program (PPP) round, there are some important things you need to know. One is the 25% loss in receipts rule.
